San Miguel County, CO

Telluride, CO short-term rental limits

Since October 24, 2023, no person or company may hold a financial interest in more than two Telluride short-term rentals. Owners licensed before that date kept their licenses by renewing them. A license never passes to a buyer, who applies again.[4]

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

Can you rent short term in Telluride?

Limited number allowed

What you apply for: Short-term rental license

Seasonal homes
559
Housing units
1,886
Residents
2,160

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

  • City ruleCapped
  • City fee$381.50
  • Tax on each stay17.22%
  • Seasonal homes296 per 1,000

Telluride short-term rental license

Telluride wants a short-term rental license in place before you advertise or rent a property. Your license number goes in every rental advertisement. The license type follows the zone. A Classic license covers the Non-Residential Zone, with no limit on nights. In the Residential Zone, a Residential license allows 3 short-term rentals a year, 29 nights in total. A Limited license caps renting at 29 nights per calendar year. Classic fees run from $1,332 for one sleeping room to $5,727 for six.[3]

What Telluride asks of you

  • Each rental unit needs its own license.[4]

  • The residential zones include Historic Residential, West Hillside and Medium Density Residential. Most of them sit north of Colorado Avenue.[4]

  • A Residential license counts both kinds of stays. It allows three short-term rentals plus three long-term rentals in a calendar year.[3]

  • A stay running from December into January counts toward the year it starts in.[3]

  • Classic fees combine a $165 base with $22 per sleeping room. A $288 administrative fee is added, plus an $857 regulatory fee per sleeping room.[4]

  • Limited and Residential licenses cost $82.50 plus $11 per sleeping room, before the same $288 administrative fee.[4]

  • Licenses expire on December 31 and must be renewed by January 6.[4]

  • Every renewal includes a financial ownership affidavit listing full Social Security numbers or EINs.[4]

  • Someone must be reachable 24/7 while the property is rented. That person's contact details are filed with the town and posted inside the unit.[4]

  • Trash and recycling need a designated area with enough bear-proof containers.[4]

  • The town may inspect a rental at random. It gives 21 days' notice and comes when no guests are staying.[4]

  • Most violations are misdemeanors, punishable by jail of up to 90 days or a fine reaching $1,000. A court can impose both. Each day of violation counts as a separate offense.[4]

  • Minimum fines start at $250. A second violation costs $500 with a six-month suspension. A third brings $1,000, a court appearance and a 12-month suspension.[4]

  • Income from illegal rentals, especially in the Residential Zone, is forfeited to the town.[4]

  • The town's overall cap on short-term rental licenses expired on November 2, 2023. New categories, Classic, Limited and Residential among them, took effect for 2024.[6]

Apply on the Telluride site

What Colorado asks wherever you host

These rules apply at this address whatever the city decides.

  • When guests book through a platform, it collects Colorado sales tax on the full amount charged. The platform also handles any county lodging tax and local marketing district tax.[1]

  • Lodging taxes a city sets stay outside the state's system, since the Department of Revenue administers none of them. Home-rule cities that run their own sales tax sit outside it too, so start with your city.[1]

  • Hosts who take direct bookings need a Colorado sales tax license and collect the 2.9% state rate themselves. The license is $16, prorated, with a $50 deposit returned once your state tax tops $50.[2]

Colorado short-term rental rules

What a guest pays on top of your nightly rate in Telluride

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

Short-term rental tax layers in Telluride
LayerRateRemitted to
Colorado state sales tax[4]2.9%The state revenue department
San Miguel County sales tax[4]1%The state revenue department
San Miguel Authority for Regional Transportation sales tax[4]1.07%The state revenue department
San Miguel County Visitor Benefit Tax[4]1.25%The state revenue department
Telluride sales tax[4]4.5%The city
Telluride lodgers' tax[4]2%The city
Telluride excise tax[4]2%The city
Telluride Affordable Housing Short-Term Rental Tax[4]2.5%The city
Total on a taxable stay17.22%

Telluride has no tax agreement with Airbnb, Vrbo or other booking sites, so hosts file the town's 11% themselves through Rentalscape. Colorado receives the 6.22% balance through its online sales tax system. A property classified as commercial skips the 2.5% housing tax.[5]

Airbnb taxes for hosts

What the census counts

How much of Telluride is already a second home

The Census Bureau counts 559 of Telluride's 1,886 homes as vacant for seasonal, recreational or occasional use. That is 296 out of every 1,000. It ranks Telluride 12th of the 21 Colorado cities on this site for the share of its housing stock kept for part-year use.

Rank in the state
12th of 21
Share of housing
296 per 1,000
Median home value
Not published

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

Nearby and comparable

Where Telluride sits among its neighbors

Grand County, CO

Permit required

Unincorporated areas only. Up to 16 occupants, with no cap on permits or nights.

Grand County short-term rental rules

Mountain Village, CO

License required

603 seasonal homes, 268 per 1,000 housing units.

Mountain Village short-term rental rules

Avon, CO

Capped

1,505 seasonal homes, 339 per 1,000 housing units.

Avon short-term rental rules

Steamboat Springs, CO

Allowed by zone

3,224 seasonal homes, 295 per 1,000 housing units.

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

FAQ

Telluride short-term rental questions

How many nights can I rent a home in Telluride's Residential Zone?

Twenty-nine a year, spread over three stays at most. A 15-night stay, a 10-night stay and a 4-night stay would use up the year.[4]

When are Telluride short-term rental taxes due?

Monthly. Each month's return opens on the first day of the next month and is due by the 20th.[3]

What does a mid-term rental need in Telluride?

A Mid-Term License, required for stays longer than 29 nights but under six months. It carries no license fee, and no short-term rental taxes apply.[3]

What happens after a first violation in Telluride?

A fine of at least $250. Three violations within a year can cost the license for two years, after a public hearing.[4]
Read nextHow to start an AirbnbThe six steps in order, starting with the permit check.Read the guide

Sources

  1. Sales & Use Tax Topics: Rooms & Accommodations (revised April 2026), Colorado Department of Revenue, read on October 1, 2026
  2. Colorado Sales Tax Guide, Colorado Department of Revenue, read on October 1, 2026
  3. Short-Term Rental Licenses, Town of Telluride, read on October 1, 2026
  4. Understanding Short-Term Rentals, STR Info Packet, Town of Telluride, read on October 1, 2026
  5. Important Information for Town of Telluride Short-Term Rental and Lodging Businesses, August 27, 2025, Town of Telluride, read on October 1, 2026
  6. Town Council Majority Passes New Short-Term Rental Policy, October 31, 2023, Town of Telluride, 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.

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