Boston, MA short-term rental rules
Boston prices the licence by how much of the home you give up — $25 a year to rent a spare room while you are there, $200 to rent the whole unit. Either way the property has to be your primary residence for nine months of the year.
1. Can you operate here?
2. What the licence takes
| Type | Annual fee |
|---|---|
| Limited Share | $25 per year |
| Home Share | $200 per year |
| Owner-Adjacent | $200 per year |
3. What it costs
- Massachusetts room occupancy excise[2]5.7%
- Boston local option[2]6.5%
- Convention center funding[2]2.75%
- Community impact fee — short-term rentals only[2]up to 3%
Other rules that apply
Occupancy caps
Limited Share: 3 guest bedrooms or 6 guests, whichever is fewer. Home Share: 5 bedrooms or 10 guests, whichever is fewer.[1]
Local contact
A local person must be able to respond in person within two hours of being notified of an issue.[1]
Business certificate
After the application is reviewed and paid, a business certificate must be obtained from the City Clerk's office.[1]
Abutter notice
Every residential dwelling within 300 feet must be notified within 30 days of the license being issued.[1]
Eligibility exclusions
A unit cannot be income-restricted, subject to affordability covenants, the subject of three or more qualifying violations in six months, or inside a designated Problem Property.[1]
Sources, and the wording behind the key figures
Each bracketed number above points to the entry below. Where a sentence is quoted it is the city's own wording — the exact text the figure was read from. Figures whose sentence is not reproduced here still carry a bracketed reference — follow it to the source page for the exact wording.
There are three types of short-term rental units that may be offered up to 365 days per year.
The fee for this type of unit is $25 per year. Occupancy is limited to three guest bedrooms or six guests, whichever is fewer.
A short-term rental is the use of a residential unit for residential occupancy — for a period of fewer than 28 consecutive calendar days — for a fee.
To be considered a primary residence, an owner needs to live in the property for at least nine months out of a 12-month period.
The state's room occupancy excise tax rate is 5.7%. Note that while the statute provides for a 5% rate, an uncodified surtax adds .7% to that rate.
In addition to the state excise, Massachusetts cities and towns are permitted to charge a local room occupancy excise tax up to 6% (6.5% for Boston).
In the cities of Boston, Worcester, Cambridge, Springfield, West Springfield, and Chicopee, an additional 2.75% tax is charged for convention center funding.
Beginning July 1, 2019, for short-term rentals only, cities and towns are permitted to charge an additional community impact fee up to 3%