Legal with permit, 90-day cap for non-primary homes
Sacramento currently lets investors run a whole-home short-term rental with a city permit, but non-primary-residence homes are capped at 90 rental days a year. The city is also drafting an ordinance that could limit all short-term rentals to owners' primary residences, so buy with that risk priced in.
Permit and costs
- Permit
- Short-Term Rental Permit
- Issued by
- City of Sacramento Revenue Division
- Cost
- $260 new, $250 renewal / year
- Renewal
- Annual
Key limits
- Non-primary residence cap
- 90 rental days per year
- Primary residence
- No night cap (184+ nights/yr occupancy)
- Permit
- Required before listing
- Pending change
- Primary-residence-only ordinance drafted
Taxes
- Transient occupancy tax
- 12%
- Business operations tax
- $50 to $54 / year
Registration checklist
- 1Apply for the STR permitFile the short-term rental permit application with the Revenue Division and pay the $260 fee.
- 2Open a business operations tax accountSet up the annual business operations tax account, which must be active for the permit to stand.
- 3Add your permit number to listingsDisplay the permit number on every Airbnb or Vrbo listing to finalize city registration.
What could change this verdict
Hosted stays use the same permit
Hosts living in the home use the same permit and face no annual night cap.
Permit and costs
- Permit
- Short-Term Rental Permit
- Issued by
- City of Sacramento Revenue Division
- Cost
- $260 new, $250 renewal / year
- Renewal
- Annual
Sources
Rules researched October 2026. They change, so verify with the city before you buy.
Want this verified for your exact address?
- Verdict for your parcel, not just the city
- Permit name, fee, and renewal schedule
- Night caps, occupancy rules, and key limits
- Tax rates and a step-by-step checklist
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