Monterey, CA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Tax rate
- 12% of rent charged
- Covers
- VRBO, Airbnb, all vacation rentals
- Registration deadline
- 10 days after starting rental
- Monthly return due
- 15th of following month
- Original delinquency penalty
- 10% plus 1%/month interest
- Fraud penalty
- Additional 25% of tax
- Records retention
- 4 years, city inspectable
Summary
Monterey's Uniform Transient Occupancy Tax expressly reaches Airbnb and VRBO listings: any structure rented for 30 days or less is a "visitor accommodation facility," so a short-term rental host owes the same 12% tax on rent as a hotel, collected from the guest and remitted monthly to the Finance Director.
Visitor Accommodation Facility. Any structure, or any portion of a structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes for periods of 30 days or less, including any inn, residential dwelling unit, motel, or lodging house, bed and breakfast inn, single room occupancy hotel, hostel, rental unit, public or private residential club, mobile home, house trailer at a fixed location, or other structure or portion of a structure. This definition includes Vacation Rentals, such as those marketed by VRBO and Airbnb, whether or not such rentals are permitted to operate within the City of Monterey. ... each transient is subject to and shall pay a tax in the amount of 12% of the rent charged by the operator.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 3721, passed July 7, 2026).
Full Breakdown
Monterey City Code § 35-10 defines "Visitor Accommodation Facility" to include "Vacation Rentals, such as those marketed by VRBO and Airbnb, whether or not such rentals are permitted to operate within the City of Monterey" - meaning the tax applies even to a listing operating without a separate land-use permit. 6(c). The host, as "operator," must register the rental with the Finance Director within 10 days of commencing business (§ 35-14), providing the property address, number of rentable rooms, operator contact information, and the Monterey County Assessor's Parcel Number; registration alone does not authorize operating the rental if a separate permit is otherwise required.
Collected tax must be separately stated from rent on the guest's receipt (§ 35-13), and returns with the full month's collections are due by the 15th of the following month (§ 35-15). Records of daily occupancy, room rate, and tax collected must be kept for four years and produced within 10 working days of a written request (§ 35-19); an operator who fails to produce records after notice owes a $100 per day civil penalty in addition to any tax owed. 1).
Violations & Fines
Late remittance draws a 10% penalty plus a second 10% penalty if still unpaid 30 days later, plus 1% monthly compound interest on the unpaid tax (§ 35-16). A deficiency the City attributes to fraud carries an added 25% penalty. Violations of the Article are enforced through administrative citations under § 1-2.00 et seq. (§ 35-22.1), and an operator may appeal a Finance Director determination to the Appeals Hearing Board within 15 calendar days (§ 35-18).
Frequently Asked Questions
Does Monterey's occupancy tax apply to my Airbnb or VRBO listing?
What percentage tax do I owe on my short-term rental income?
Do I have to register my rental with the city before renting it out?
What happens if I file or pay the occupancy tax late?
Sources & Official References
Other rules in Monterey
How Monterey compares: Cities with the Highest Short-Term Rental Taxes·California rules heatmap·Compare Monterey to another location·View the California short-term rentals overview
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