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]
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]
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.
| Layer | Rate | Remitted 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 stay | 17.22% |
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 hostsWhat 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 rulesMountain Village, CO
License required
603 seasonal homes, 268 per 1,000 housing units.
Mountain Village short-term rental rulesSteamboat Springs, CO
Allowed by zone
3,224 seasonal homes, 295 per 1,000 housing units.
Steamboat Springs short-term rental rulesFAQ
Telluride short-term rental questions
How many nights can I rent a home in Telluride's Residential Zone?
When are Telluride short-term rental taxes due?
What does a mid-term rental need in Telluride?
What happens after a first violation in Telluride?
Sources
- Sales & Use Tax Topics: Rooms & Accommodations (revised April 2026), Colorado Department of Revenue, read on October 1, 2026
- Colorado Sales Tax Guide, Colorado Department of Revenue, read on October 1, 2026
- Short-Term Rental Licenses, Town of Telluride, read on October 1, 2026
- Understanding Short-Term Rentals, STR Info Packet, Town of Telluride, read on October 1, 2026
- Important Information for Town of Telluride Short-Term Rental and Lodging Businesses, August 27, 2025, Town of Telluride, read on October 1, 2026
- 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.
Before you list
Free tools for new hosts
Short-term rental agreement generator
Parties, dates, rent, deposit checked against your state's cap, and the house rules clauses you enforce. A signed-ready PDF for direct and Vrbo bookings.
Airbnb host fee calculator
What Airbnb takes on a booking under the 15.5% host-only fee or the old split fee, what the guest pays on top, and the payout that reaches you.
Airbnb profit calculator
Nightly rate, occupancy, Airbnb fee, management, mortgage, taxes and depreciation. You get cash flow, cash-on-cash return and what is left after the IRS.
Airbnb cleaning checklist generator
Build a printable turnover checklist by room, with restock, photos to take and a place for the cleaner to sign. Free PDF, no sign-up.