Denver vs Palm Springs

Colorado Legal with Permit | California Legal but Limited

Disclaimer: General information only — not legal advice. Verify with your local government.

Denver, Colorado
Status Legal with Permit
Permit Fee $100 license fee
Tax Rate 10.75% Lodger's Tax (combined city/county/state)
Day Limit No limit
Renewal Every 2 years
Platform Tax Yes
Max Fine $999/day for unlicensed operation
Palm Springs, California
Status Legal but Limited
Permit Fee $1,072/year Vacation Rental Certificate; $642/year Junior Certificate
Tax Rate 12.5% combined (11.5% TOT + 1% TBID)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension

Denver has more favorable STR regulations overall.

Permits & Licensing

Denver charges $100 license fee for STR licensing, while Palm Springs charges $1,072/year Vacation Rental Certificate; $642/year Junior Certificate. Denver renewal is every 2 years, and Palm Springs renewal is annual. Overall, Denver has a more permissive regulatory environment (Legal with Permit) compared to Palm Springs (Legal but Limited).

Tax Obligations

In Denver, hosts pay 10.75% Lodger's Tax (combined city/county/state). In Palm Springs, hosts pay 12.5% combined (11.5% TOT + 1% TBID). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Denver face penalties including $999/day for unlicensed operation. In Palm Springs, violations can result in $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Denver Overview

Only primary residences may be used as STRs. Hosts must obtain a Short-Term Rental license. No cap on rental days. Accessory dwelling units on the same lot are also eligible.

Contact: Denver Excise & Licenses — (720) 913-1311

Full Denver guide →

Palm Springs Overview

Limited to 26 rental contracts per year (28 nights or shorter each). Neighborhood density cap of 20% — multiple neighborhoods already at capacity. One permit per owner; occupancy based on bedroom count. $500,000 liability insurance required.

Contact: Dept. of Special Program Compliance — (760) 322-8383

Full Palm Springs guide →

Frequently Asked Questions

Is it easier to Airbnb in Denver or Palm Springs?
Denver is classified as "Legal with Permit" while Palm Springs is "Legal but Limited." Denver's permit fee is $100 license fee compared to $1,072/year Vacation Rental Certificate; $642/year Junior Certificate in Palm Springs. Overall, Denver has a more host-friendly regulatory environment.
Which city has higher STR taxes — Denver or Palm Springs?
Denver charges 10.75% Lodger's Tax (combined city/county/state), while Palm Springs charges 12.5% combined (11.5% TOT + 1% TBID).
Which city has stricter fines for illegal short-term rentals?
Denver: $999/day for unlicensed operation. Palm Springs: $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Denver and Palm Springs have day limits for Airbnb?
Denver has no annual day limit. Palm Springs has no annual day limit.
Which city is better for first-time Airbnb hosts — Denver or Palm Springs?
For new hosts, consider the total cost of entry: Denver charges $100 license fee for permits with 10.75% Lodger's Tax (combined city/county/state) in taxes. Palm Springs charges $1,072/year Vacation Rental Certificate; $642/year Junior Certificate with 12.5% combined (11.5% TOT + 1% TBID). Automatic tax collection in Denver and Palm Springs makes compliance easier for beginners.