Chelsea, MA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Annual registration fee
- $200.00 per short-term rental unit
- Registration term
- January 1 through December 31 each year
- Violation fine
- $300.00 per violation, per day
- Excise tax authority
- M.G.L. c. 64G, §§ 3A and 3D
- Enforcing agencies
- ISD, Chelsea Police and Fire Departments
- Eligible unit types
- Limited share unit or owner-adjacent unit only
Summary
Chelsea requires every eligible short-term rental to register annually with the Inspectional Services Department and pay a $200 registration fee per unit, valid January 1 through December 31 under Code of Ordinances Section 6-5(f). Registered units also owe the local room occupancy excise tax on short-term rentals adopted by the city council under M.G.L. c. 64G, Sections 3A and 3D, layered on top of the city fee.
(f)Short-term rental registration process and fee.(1)An operator who wishes to offer a residential unit as a short-term rental shall register with ISD on a form prescribed by ISD to be listed on the short-term rental registry. A registration shall be valid for a one-year term, from January 1 through December 31 of each year.(2)The annual registration fee shall be $200.00 per short-term rental unit. ... (g)Room occupancy excise tax. A residential unit subject to the provisions of this section shall pay all excise tax on short-term rentals approved by the city council pursuant to M.G.L. c. 64G, §§ 3A and 3D. (h)Enforcement and penalties.(1)Any person who (i) offers a unit as a short-term rental where such unit is not an eligible residential unit, (ii) offers an eligible residential unit as a short-term rental without registering such short-term rental unit with ISD, or (iii) offers an eligible residential unit as a short-term rental while the unit's registration on the short-term rental registry is suspended, shall be fined $300.00 per violation per day.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 26).
Full Breakdown
Chelsea's short-term rental ordinance, Code of Ordinances Section 6-5, only allows short-term rentals that qualify as a limited share unit (the operator's own owner-occupied unit, with one bedroom reserved for the operator) or an owner-adjacent unit inside an owner-occupied two- or three-family home or condominium; whole-building investment rentals do not qualify. 00 per unit set out in Section 6-5(f)(2) covers the required inspection for a certificate of occupancy under Section 6-5(f)(3); no registration is issued until that certificate is granted. Registration runs on a calendar-year term from January 1 through December 31 and does not transfer automatically when the unit is sold, so a new owner must re-register with ISD before continuing to list the property.
c. 64G, Sections 3A and 3D, which is collected in addition to, not instead of, the local registration charge. Units with three or more findings of violation within a year, or that carry outstanding building, sanitary, zoning or fire code violations, lose eligibility or have their registration suspended by ISD until the problem is cured.
Violations & Fines
Offering an ineligible unit, operating without ISD registration, or renting while a registration is suspended draws a $300.00 fine per violation per day under Section 6-5(h)(1), with each day of noncompliance a separate offense. The city may also seek a court injunction to stop the rental outright. ISD, the Chelsea Police Department and the Chelsea Fire Department all have authority to enforce Section 6-5, and cases may proceed under the noncriminal disposition procedure referenced in M.G.L. c. 40U.
Frequently Asked Questions
Does Chelsea charge short-term rental hosts a separate registration fee?
Is there a separate lodging tax on top of the city fee?
Does the registration transfer when the property is sold?
Sources & Official References
Other rules in Chelsea
How Chelsea compares: Cities with the Highest Short-Term Rental Taxes·Compare Chelsea to another location·View the Massachusetts short-term rentals overview
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