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Is Airbnb legal in South Lake Tahoe, California?

Legal with permit, residential zones capped at 900. South Lake Tahoe issues Vacation Home Rental permits to investors, but residential areas are capped at 900 total permits under the April 2026 ordinance. Measure T, the old residential ban, was struck down in court in 2025, so the current system is permits plus a hard cap.

Showing the researched rules for South Lake Tahoe, CA below. Type your South Lake Tahoe address to jump to the verdict.

Legal with permit

Legal with permit, residential zones capped at 900

South Lake Tahoe issues Vacation Home Rental permits to investors, but residential areas are capped at 900 total permits under the April 2026 ordinance. Measure T, the old residential ban, was struck down in court in 2025, so the current system is permits plus a hard cap.

Permit and costs

Permit
Vacation Home Rental (VHR) Permit
Issued by
City of South Lake Tahoe
Cost
$548 application, $250-$1,325 / year by occupancy
Renewal
Annual

Key limits

Residential cap
900 permits total
Tourist core
Uncapped
Local manager
Required for residential-area STRs
Violations
3 in 24 months can end the permit

Taxes

Transient occupancy tax
12%, self-remitted
Tourism district fee
$5.50 / night on agent-managed stays

Registration checklist

  1. 1
    Apply for the VHR permit
    Apply to the Community Development Department, pass the inspection, and include the permit number in all ads.
  2. 2
    Hire a local manager
    Residential-area rentals must use a local property manager for guest check-in, monitoring, and 24/7 complaint response.
  3. 3
    Remit TOT yourself
    Collect and remit the 12% TOT directly to the city; Airbnb and Vrbo do not collect it here.

What could change this verdict

Your HOA
Condo HOAs can prohibit short-term rentals even with a city permit, so read the HOA documents before buying.
Rules are still settling
Measure T's ban was struck down in 2025 and the new cap system took effect April 2026, so expect continued tweaks.

Sources

City of South Lake Tahoe TOT page · Avalara: SLT caps VHRs at 900

Rules researched October 2026. They change, so verify with the city before you buy.

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Verify before you buy. Rules change often and vary by zoning, HOA, and building type. This is a research starting point, not legal advice. Always confirm with the city's planning or business-license office before signing anything.