Ann Arbor, MI Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Fee type
- Nonrefundable license fee
- Amount set by
- Annual City Council resolution
- Charged at
- Application and annual renewal
- Separate lodging tax
- None in Chapter 97
Summary
Ann Arbor charges every short-term rental a nonrefundable license fee set annually by City Council resolution rather than a fixed dollar amount written into the ordinance.
(7)Short-term rental licensing fee.(a)The applicant of the property shall be responsible for payment of a nonrefundable license fee, with the license fee amount to be determined by annual resolution of City Council. (Ord. No. 20-24, § 1, 9-8-20, eff. 3-1-21)
7:653. - Short-term rental unit requirements. (1)Short-term rental units are prohibited unless the city has issued a short-term rental license for the unit.(2)The occupancy of a dwelling unit rented as a short-term rental shall not exceed the occupancy permitted pursuant to section 5.16.1.a.2 of the UDC, "limits on occupancy of dwelling unit."(3)No host shall rent a short-term rental unit in a manner that requires a person to sleep in an area that is not habitable as set forth in chapter 105 (Housing Code).(4)No host shall advertise a short-term rental unit, unless the advertisement includes the applicant's short-term rental unit license number and the maximum occupancy permitted in the unit.(5)The short-term rental unit host shall be responsible for all nuisance and enforcement complaints on their premises. (Ord. No. 20-24, § 1, 9-8-20, eff. 3-1-21)
7:654. - Specific regulations by short-term rental type.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 26 Update 4).
Full Breakdown
City Code section 7:652(7) requires the applicant to pay a nonrefundable short-term rental license fee, with the exact amount set each year by City Council resolution rather than fixed in the ordinance text. The fee applies to the initial license and again at each annual renewal under section 7:652(6)(b). Chapter 97 does not create a separate lodging or occupancy tax on short-term rentals; the license fee is the only charge the chapter imposes.
Violations & Fines
Failing to pay the required fee at application or renewal blocks issuance of the license, and operating without a current license is a civil infraction fineable up to $500 per day.
Frequently Asked Questions
How much is Ann Arbor's short-term rental license fee?
Does Ann Arbor charge a separate lodging tax on short-term rentals?
Sources & Official References
Other rules in Ann Arbor
How Ann Arbor compares: Cities with the Highest Short-Term Rental Taxes·Compare Ann Arbor to another location·View the Michigan short-term rentals overview
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