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

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

TOT registration
Required under Chapter 5.40 (§ 7.120.040(C))
Business license
Required under Chapter 7.02 (§ 7.120.040(D))
Fee amounts
Set by Board Fee Resolution (§ 7.120.120)
Missed payment consequence
Grounds for non-renewal (§ 7.120.110(B)(3))
Revocation ground
Unpaid taxes/fees (§ 7.120.130(A)(4))

Summary

Every licensed vacation rental in unincorporated Monterey County must register for a Transient Occupancy Tax certificate and hold a county business license before renting. County Code § 7.120.040(C)-(D) requires TOT registration under Chapter 5.40 and a business license under Chapter 7.02, both kept current for as long as the rental operates.

These county ordinances apply to unincorporated areas of Monterey County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

C.The operator shall register the vacation rental with the County and obtain a Transient Occupancy Tax Certificate in accordance with the provisions of Chapter 5.40 of the Monterey County Code.D.The operator shall obtain a business license from the County pursuant to Chapter 7.02 of the Monterey County Code before commencing the vacation rental use and must keep a valid business license throughout the vacation rental use.

Source: Monterey County Code Chapter 5.40 - Transient Occupancy TaxView official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 56).

Full Breakdown

040(L)(5)-(6). 40 of the Monterey County Code, as periodically amended,' meaning the license, application, and renewal dollar amounts are set separately by resolution rather than fixed in the ordinance text. 110(B)(3).

Violations & Fines

An operator who fails to pay TOT or keep a valid business license risks license non-renewal under § 7.120.110(B)(3), and 'failure to pay all applicable taxes, fees, and penalties required by the County' is an express ground for outright license revocation under § 7.120.130(A)(4). Operating without the required certificates also exposes the operator to the Chapter 7.120 civil citation schedule of up to $1,000 for a first offense, $2,500 for a second, and $5,000 for a third within a year (§ 7.120.160(D)).

Frequently Asked Questions

Do Monterey County vacation rentals have to collect Transient Occupancy Tax?
Yes. Section 7.120.040(C) requires every operator to register the rental with the County and obtain a Transient Occupancy Tax Certificate under Chapter 5.40 before renting, and the certificate must be posted inside the unit under § 7.120.040(L)(6).
Is a separate business license required on top of the vacation rental license?
Yes. Section 7.120.040(D) requires the operator to obtain and keep current a County business license under Chapter 7.02 before commencing the vacation rental use, in addition to the vacation rental license itself and the TOT certificate.
Where can I find the actual license and TOT fee amounts?
The ordinance doesn't set dollar figures. Section 7.120.120 states that fees, fines, and costs under Chapter 7.120 are established by the Board of Supervisors in the Monterey County Fee Resolution under Chapter 1.40 and are periodically amended, so operators must check the current Fee Resolution.

Sources & Official References

Other rules in Monterey County

All Monterey County rules

How Monterey County compares: Cities with the Highest Short-Term Rental Taxes·California rules heatmap·Compare Monterey County to another location·View the California short-term rentals overview

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