Suffolk County, NY

Shelter Island, NY short-term rental license

For an ordinary Shelter Island host, short stays in the residential A, AA and C zones require a license. A 2023 amendment ended the exemption for owner-occupied premises, which the town also calls accessory apartments. Each rental now needs a safety certification from a licensed architect, engineer or home inspector, unless the Building Department inspects it.[7]

Every rule below links to the official source it comes from, verified October 1, 2026.

Can you rent short term in Shelter Island?

Get a license first

What you apply for: Limited Commercial Vacation Rental License

Seasonal homes
1,946
Housing units
3,440
Residents
3,355

U.S. Census Bureau, 2024 ACS 5-year estimates

  • City ruleLicense required
  • City fee$150
  • Tax on each stay14.25%
  • Seasonal homes566 per 1,000

Shelter Island vacation rental license

Shelter Island requires a Commercial Vacation Rental License for any rental of 14 days at most. The license fee is $150, and renewal costs the same amount. The license runs by calendar year, and the current one expires on December 31, 2027. Rentals of 15 days or more go on the long-term registry, which is free. An owner may hold both at once. The town must be notified every time the home is rented. A safety inspection has been required since June 20, 2023.[8]

What Shelter Island asks of you

  • Rentals of up to 14 days are banned in the A, AA and C residential zones without a license. The ban extends to advertising them, accessory apartments included.[7]

  • The vacation rental license allows one rental in any 14-day period. Each period opens on the first day of a rental and covers the 13 days after it.[7]

  • One property per owner can be licensed, with the owner's nuclear family counted as the same owner. An entity is refused when one of its partners, members or officers already holds a license.[7]

  • A Homesteader's hardship license is reserved for the owner's primary residence. It allows one rental a week from Memorial Day weekend through Labor Day weekend.[7]

  • The rest of the year, the homesteader may rent once every 14 days. Eligibility requires a STAR exemption on the house and income below 500% of the HHS poverty guidelines.[7]

  • Primary residence is a condition of the homesteader license only. The commercial license carries no such requirement.[7]

  • The 2023 amendment states that accessory apartments serve only as year-round rentals, never for transient stays.[7]

  • Every owner who rents or advertises a property registers it with the town at no charge. Registration lasts two calendar years.[6]

  • Before each rental term starts, the owner sends Code Enforcement the registration number with the rental dates.[6]

  • Ads must give the town registration number and the number of bedrooms. They also state the minimum rental term allowed.[6]

  • Occupancy is capped at two times the number of conventional legal bedrooms. Children of the age of three years are not counted.[7]

  • Each tenant receives the town's Good Neighbor Brochure no later than the start of the stay.[7]

  • License holders give the town and every neighbor within 200 feet a number to call about problems. It can be the owner's cell or a local contact who lives on Shelter Island.[7]

  • The license application asks owners to certify that they carry liability insurance covering injuries to renters. It states no coverage amount.[9]

  • For a first violation, the court may set a fine of no more than $250. The town can waive it on proof of compliance.[6]

  • A second violation can cost up to $2,000, and jail of up to 15 days is also possible. Later ones reach $5,000, with up to 30 days of jail possible.[6]

  • After a second offense in a calendar year, the Town Board may suspend the license for up to six months. A fourth offense that year can revoke it for good.[6]

  • Suffolk County issues a Certificate of Authority to each lodging facility it registers, to be displayed inside. Owners have ten days from their first guests to register, or a $50 daily fine applies.[4]

Apply on the Shelter Island site

What New York asks wherever you host

These rules apply at this address whatever the city decides.

  • In New York State, the county keeps the short-term rental registry. Once yours opens, the unit is registered there and its number appears on each listing.[1]

  • Short-term stays have carried sales tax since March 1, 2025. When a platform takes the booking, the platform charges that tax and remits it.[2]

  • Local control stays with cities, towns and villages, which can set operating rules. A local law can also ban short-term rentals outright.[1]

New York short-term rental rules

What a guest pays on top of your nightly rate in Shelter Island

Each layer is set by a different authority, and not all of them are collected by the platform.

Short-term rental tax layers in Shelter Island
LayerRateRemitted to
New York State sales tax[3]4%The state revenue department
Suffolk County sales tax[3]4.375%The state revenue department
Metropolitan Commuter Transportation District sales tax[3]0.375%The state revenue department
Suffolk County hotel and motel tax[4]5.5%The county
Total on a taxable stay14.25%

Internet platforms that accept reservations for short-term rentals must post the Suffolk hotel tax and collect it. Local Law 1 of 2024 set that duty.[5]

Airbnb taxes for hosts

What the census counts

How much of Shelter Island is already a second home

The Census Bureau counts 1,946 of Shelter Island's 3,440 homes as vacant for seasonal, recreational or occasional use. That is 566 out of every 1,000. It ranks Shelter Island 4th of the 13 New York cities on this site for the share of its housing stock kept for part-year use.

Rank in the state
4th of 13
Share of housing
566 per 1,000
Median home value
$1,104,300

U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.

Nearby and comparable

Where Shelter Island sits among its neighbors

New York City, NY

Primary residence only

With a city registration, in your own home while you stay there, two guests at most. Whole-home rentals under 30 days are not allowed.

New York City short-term rental rules

Southampton, NY

Permit required

18,346 seasonal homes, 398 per 1,000 housing units.

Southampton short-term rental rules

Southold, NY

Permit required

4,682 seasonal homes, 301 per 1,000 housing units.

Southold short-term rental rules

Hunter, NY

Permit required

1,791 seasonal homes, 628 per 1,000 housing units.

Hunter short-term rental rules
StatewideEvery New York city on this site, in one tableState law, the tax stack and every city we cover in New York, with what each one asks of a host.New York short-term rental rules

Keep exploring

FAQ

Shelter Island short-term rental questions

Can I rent my Shelter Island home every weekend in summer?

Only under a Homesteader's hardship license, which requires the home to be your primary residence. The standard vacation rental license allows one rental in any 14-day period.[7]

Does the Shelter Island rental registry cost anything?

No. The town charges no fee for the long-term registry, which covers rentals of 15 days or more.[8]

What changed in Shelter Island's rental law in 2023?

A safety certification became mandatory for every rental dwelling unit. The exemption for owner-occupied premises was also removed from the vacation rental rules.[7]
Read nextHow to start an AirbnbThe six steps in order, starting with the permit check.Read the guide

Sources

  1. Real Property Law section 447-c, registration, New York State Senate, read on October 1, 2026
  2. Sales tax on short-term rental unit occupancy, New York State Department of Taxation and Finance, read on October 1, 2026
  3. Publication 718, Sales and Use Tax Rates by Jurisdiction, effective March 1, 2025, New York State Department of Taxation and Finance, read on October 1, 2026
  4. Hotel / Motel Tax, Suffolk County Comptroller, read on October 1, 2026
  5. Local Law No. 1 of 2024, A Local Law to Amend the Hotel and Motel Tax Law, Suffolk County Legislature, read on October 1, 2026
  6. Local Law No. 11 of 2019, Chapter 105, Rental of Real Property, Town of Shelter Island, read on October 1, 2026
  7. Local Law No. 7 of 2023, amending Chapter 105, Rental of Real Property, Town of Shelter Island, read on October 1, 2026
  8. Property Rentals, Town of Shelter Island, read on October 1, 2026
  9. Limited Commercial Vacation Rental License Application, Town of Shelter Island Building Department, read on October 1, 2026

This page is not legal advice. It summarizes the official sources listed on this page as they read on October 1, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.

Before you list

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