Monterey County, CA Short-Term Rentals: Taxes & Fees (2026)

Short-term rentals in unincorporated Monterey County are subject to the County's Transient Occupancy Tax (TOT), administered by the Treasurer-Tax Collector. The TOT rate is 10.5% of the rent charged to transient guests (stays of 30 days or fewer) in hotels, motels, commercial and limited vacation rentals, and owner-rented homestays located in the unincorporated areas. Operators must register for a TOT certificate, collect the tax from guests, and remit it to the County. On top of the tax, operators pay a Vacation Rental Operation License fee - listed at $965 in the County's ordinance materials - and must obtain a County business license under Title 7. Commercial Vacation Rentals that require a discretionary Use Permit (inland) or Coastal Development Permit (coastal) incur substantial additional planning application fees because those are full land-use entitlements. Fee amounts are set by the County's adopted fee schedule and are updated periodically, so operators should confirm current figures with Housing and Community Development and the Treasurer-Tax Collector before applying. A County ballot measure has been discussed that would raise the unincorporated TOT above 10.5%, but the rate in effect remains 10.5% unless and until voters approve an increase.