Lexington, KY Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Primary tax collector
- Hosting platform, per booking
- Fallback collector
- Licensee, if platform doesn't collect
- Governing tax section
- § 2-172, applied via § 13-78
- Additional fee
- Occupational license fee on net profits
- Penalty basis
- Article I, Ch. 13 tax/fee nonpayment penalty
Summary
Hosting platforms operating in Lexington-Fayette County must collect and remit transient room tax on every booking they process; if a platform does not collect it, the licensee owner must collect and pay it directly. Licensees separately owe occupational license fees on the net profits their short-term rentals earn.
Pursuant to section 2-172 of the Lexington-Fayette Urban County Government Code of ordinances, each hosting platform shall be required to collect and pay to the urban county government all transient room taxes on all rent charged or collected by the hosting platform. If rent is not charged or collected by a hosting platform, the licensee shall be required to collect and pay to the urban county government all transient room taxes required by law. Pursuant to article I of this chapter, licensees are responsible for payment of occupational license fees on net profits earned from the operation of short-term rentals and on withholdings from employee compensation paid for work done or services performed in the urban county, subject to any applicable exemptions, including for rental property.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Republication | Zoning Ordinance: Republication).
Full Breakdown
Code of Ordinances § 13-78 requires that 'each hosting platform shall be required to collect and pay to the urban county government all transient room taxes on all rent charged or collected by the hosting platform,' and that 'if rent is not charged or collected by a hosting platform, the licensee shall be required to collect and pay to the urban county government all transient room taxes required by law,' both pursuant to § 2-172. ' These tax duties sit alongside the § 13-77 special fees license requirement and its accompanying application fee under § 13-13: a licensee is on the hook for the license fee, the occupational license fee on profits, and the transient room tax on every stay, whichever party (platform or owner) actually collects the rent from the guest.
Violations & Fines
Any person who violates § 13-78's tax-collection duty 'shall be subject to the penalty provided in article I of this chapter for failure to pay the applicable tax or occupational license fee,' per § 13-81. That penalty runs separately from the $125–$1,000 escalating civil fines that apply to other short-term rental violations, and each day of continued nonpayment after notice constitutes an additional offense.
Frequently Asked Questions
Who collects lodging tax on an Airbnb booking in Lexington?
What if a guest pays the owner directly, without a platform?
What other fees does a Lexington STR owner owe besides the license fee?
Sources & Official References
Other rules in Lexington
How Lexington compares: Cities with the Highest Short-Term Rental Taxes·Compare Lexington to another location·View the Kentucky short-term rentals overview
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