Monterey County, CA Short-Term Rentals: Taxes & Fees (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.
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.
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?
Is a separate business license required on top of the vacation rental license?
Where can I find the actual license and TOT fee amounts?
Sources & Official References
Other rules in Monterey County
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
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.