Idaho Short-Term Rental Law After HB 583: No Local Permit, Plus the Taxes You Still Owe

If you read older guides, you probably saw a patchwork of city permits, inspections, and owner-occupancy rules. That changed on July 1, 2026. House Bill 583 (2026 session law, chapter 22, signed March 16, 2026) limits what cities and counties can require from anyone running a short-term rental (STR) in Idaho. The short version: no local permit, no local license, and no local registration. The tax obligations did not go away, and a few of them are new for owners who rent without a booking platform.

This guide is informational content, not legal or tax advice. Local ordinances vary and laws change. For your specific situation, talk with a qualified attorney or CPA.

What HB 583 changed

HB 583 amends Idaho Code 67-6539 and 63-1804. The provisions that matter most to owners:

• No local permit. No city or county may require a license, fee, permit, certification, or registration to operate a short-term rental (67-6539(5)).
• Bans and owner-occupancy rules are barred. The law classifies a short-term rental as a non-transient residential use. Local bans, owner-occupancy requirements, day caps, inspections, extra parking requirements, and insurance rules are all barred.
• Old permit programs are void. City STR permit programs no longer have legal force. Sandpoint stopped issuing STR permits in July 2026. Boise and other cities should be checked directly with their city clerk, because programs and enforcement practices differ.

What local rules can still require

Cities and counties keep some safety authority. Under 67-6539(3), a local rule may require only:

• Smoke alarms, a fire extinguisher, and a carbon monoxide detector on each floor
• Escape ladders for upper-floor sleeping areas
• Occupancy limits no stricter than the building code
• An exit and emergency-contact handout for guests

That list is the safety ceiling. If a city asks for something that is not on it, ask the clerk which statute authorizes the requirement. Get the answer in writing.

What still applies: noise, parking, and nuisance

HB 583 does not exempt your rental from ordinary neighborhood rules. Noise limits, nuisance rules, curfews, and traffic rules still apply to your property, the same way they apply to a long-term tenant. A guest playing music at midnight is a nuisance problem whether or not you hold a permit. A written house-rules sheet, given to every guest, is the cheapest protection you can buy, and it can sit alongside the exit and emergency-contact handout the statute allows a city to require.

Do you need a business license?

Usually no state license, no county license, and a city answer that depends on where the property sits.

• State: Idaho does not have a state business license. Business.Idaho.gov says it plainly: 'Idaho does not have a state business license. Registering your business is a registration, not a license.' Forming an LLC with the Secretary of State is a registration.
• County: Counties issue no general business license.
• City: Some cities require a general business license or permit. Others license only specific activities. Ask your City Clerk which category applies to your address. Do not assume the next town over works the same way.

The Business Wizard at business.idaho.gov generates a checklist of the agencies and permits a specific activity needs. If you act as your own contractor for renovations, note that Idaho has no statewide general contractor license. Contractors register with the Idaho Contractors Board at DOPL.

Forming the entity (optional, but common)

Many owners hold a rental in an LLC for liability separation. Idaho entity filings go through the Idaho Secretary of State, not the county. Counties do not take these filings.

Filing	Cost	Notes
LLC Certificate of Organization	$100 online; $120 on paper	Filed through SOSBiz at sosbiz.idaho.gov
LLC annual report	No fee	Required every year, due before the end of the month the certificate became effective, starting one year after formation
Assumed business name (DBA)	$25 online; $45 on paper	Filed with the Secretary of State, statewide. Stays active until canceled and does not renew.
Name reservation	$20	Holds a name for 120 days

Processing: the Secretary of State says business filings process in about 7 to 10 days. Expedited options exist. A $40 surcharge gets evidence of filing within 8 working hours, and a $100 surcharge gets same day service on filings submitted before 1:00 p.m. Mountain time. Check current estimates on the SOSBiz Processed Through Date page.

Every entity must maintain an Idaho registered agent with a physical Idaho street address. P.O. boxes are not accepted. An owner can act as their own registered agent using an Idaho address, or hire a commercial registered agent. A DBA cannot serve as the registered agent. Owners who live out of state should plan for this requirement before filing.

Taxes you still owe

HB 583 changed local permitting. It did not erase tax obligations. Several taxes still apply.

Lodging tax: the platform question

If a booking platform collects and remits lodging tax on your stays, the platform handles much of that work. HB 583 added a rule for owners who rent without a platform. Under 63-1804(5), you must register with the Idaho State Tax Commission and collect and remit lodging taxes the way a marketplace would. This guide does not state a registration fee or deadline, so confirm both at tax.idaho.gov before your first booking.

State sales tax: 6%

The 6% state sales tax still applies. Ask the Tax Commission how it applies to your stay types. Whether you need a sales tax permit is also a Tax Commission question, and the Idaho Business Registration page at tax.idaho.gov/ibr is the place to start. Most Idaho cities add no local sales tax. The exception is resort cities where voters approved a local sales tax.

Travel and convention tax: 2%

A 2% travel and convention tax applies to stays of 30 days or less (Idaho Code 67-4718). Stays longer than 30 days fall outside this tax.

Resort-city and auditorium-district taxes

Some resort cities and auditorium districts levy their own taxes on lodging. Their rates and rules vary, and this guide does not state them. Check with the city clerk and the Tax Commission for the exact property address.

Income tax: flat 5.3%

Idaho has a flat 5.3% income tax. A default LLC is a pass-through entity, so members report Idaho income on their personal returns at that rate. An LLC that files a partnership or S corporation return owes the $10 permanent building fund tax. An LLC taxed as a C corporation pays the 5.3% business income tax plus the $10 permanent building fund tax. Idaho has no franchise tax and no LLC-specific annual state tax. Your CPA should confirm which treatment fits your entity.

Your checklist

1. Call the city clerk for your property. Ask whether a general business license or an activity license applies, and whether any old STR permit program still applies.
2. Install the safety items the statute allows a city to require: smoke alarms, a fire extinguisher, carbon monoxide detectors on each floor, escape ladders for upper sleeping areas, a compliant occupancy limit, and a guest handout.
3. Write house rules covering noise, parking, and quiet hours, and give them to every guest.
4. Decide whether to hold the property in an LLC. If yes, file the Certificate of Organization, name a registered agent, and calendar the annual report.
5. If you rent without a booking platform, register with the Tax Commission and set up lodging tax collection and remittance.
6. Confirm the 6% state sales tax, the 2% travel and convention tax, and any resort-city or auditorium-district tax for your address.
7. Report rental income on your Idaho return at the flat 5.3% rate.

Where to verify

• Idaho Secretary of State: https://sos.idaho.gov/
• SOSBiz business search: https://sosbiz.idaho.gov/search/business
• SOSBiz filing forms: https://sosbiz.idaho.gov/forms/business/
• Business forms, DBA, and name reservation: https://sos.idaho.gov/business-forms/
• Idaho State Tax Commission: https://tax.idaho.gov/
• Idaho Business Registration (sales tax permit): https://tax.idaho.gov/ibr
• Business.Idaho.gov Business Wizard: https://business.idaho.gov
• Idaho Small Business Development Center: https://idahosbdc.org/

When to get a professional

A short consult is worth it if you own several properties, hold rentals in more than one city or county, have out-of-state members in an LLC, or face a dispute with a neighbor or a city. An attorney can read the local ordinance against HB 583. A CPA can work through the lodging tax registration and the LLC tax treatment. The Idaho SBDC is a practical starting point for general business planning questions.

This article is informational only and is not legal or tax advice. Confirm every fee, deadline, and rate with the agency that administers it before you file or collect.