Rental Rules by City / Wisconsin / Madison
Madison short-term rental rules & tax calculator
📋 The Basics
- Can I rent my place short-term here?
- Only in some areas
- Do I need a permit?
- Only in your primary home, with three permits.
- What taxes do I pay?
- Total about 15.5%. Check your Airbnb payout report to see which ones Airbnb collects; you pay the rest yourself.
Your 3 steps to be legal
- Get the county TRH license.
- Get the room tax permit.
- Get the zoning permit.
⚠️ Biggest risk: Renting a home that is not your primary dwelling.
Words confusing? See the glossary. Details and official sources are below.
Tax calculator
Rates used: Wisconsin + Dane County sales tax 5.5% + Madison room tax 10% = 15.5%. Mandatory cleaning fees are included in the taxable total. 10% city room tax plus 5.5% sales tax. Airbnb/VRBO collect both in Madison; city returns are quarterly. Rates not yet confirmed on an official page: Madison room tax 10%. Verify before filing.
What Airbnb collects: Verify in payouts which taxes your platform remits.
Advanced details (laws, fees, sources)
Rules
| Permits | Three needed: Dane County TRH license (with inspection), city Transient Room Tax permit, and Zoning TRH permit ($300 one-time application, then $100 annual renewal). |
|---|---|
| Limits | Must be your primary dwelling (for the 12 months before starting). Max guests: the lesser of 2 per bedroom or 12. Nights-away cap: verify with the city. |
Items marked "Verify with the city" could not be confirmed from an official source; call the office listed before relying on them.
Sources
Free tools
Free "Is my rental legal?" checklist · Free tourist tax calculator
Rules can change
Madison's rules, its tax rates and platform policies can change through a council vote, a new state law or a court ruling, often with little notice to hosts. We re-check this page monthly; subscribers get notified. Stay Compliant for $4.99/mo.
Want it done for you?
Get a personalized STR Compliance Check ($49) for your exact address in any US city: the permits, registrations and tax accounts you need, with official sources, delivered by email in 48 business hours. Not legal advice.
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Stay Compliant: $4.99/month
Rules, tax rates and Airbnb/Vrbo policies can change without warning, and hosts who miss a change can be fined. Get alerts when your city, county or state changes, deadline reminders, a pending-bill watch list and a monthly host brief (even in quiet months: "we checked on [date]; no changes"). Compare plans.
By paying, you agree to our Terms and Refund Policy.
Not legal or tax advice. Last verified Oct 24, 2026. Rules and rates change: confirm with the official sources linked before you rent or file.