Denver vs Sacramento

Colorado Legal with Permit | California Legal with Permit

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
Sacramento, California
Status Legal with Permit
Permit Fee $230 initial application; $160 annual renewal; $54 annual Business Operations Tax
Tax Rate 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Contact city for current details

Both cities have comparable STR regulatory environments.

Permits & Licensing

Denver charges $100 license fee for STR licensing, while Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax. Denver renewal is every 2 years, and Sacramento renewal is annual. Both cities share a similar regulatory stance, classified as "Legal with Permit."

Tax Obligations

In Denver, hosts pay 10.75% Lodger's Tax (combined city/county/state). In Sacramento, hosts pay 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Sacramento imposes a 90-night annual limit, while Denver has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

Hosts operating without a permit in Denver face penalties including $999/day for unlicensed operation. In Sacramento, violations can result in Contact city for current details. 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 →

Sacramento Overview

Host must reside in the property at least 184 nights/year (primary residence requirement); non-primary-residence rentals capped at 90 days/year. Maximum 6 guests at any time.

Contact: Revenue Division, Finance Department — (916) 808-8500

Full Sacramento guide →

Frequently Asked Questions

Is it easier to Airbnb in Denver or Sacramento?
Denver is classified as "Legal with Permit" while Sacramento is "Legal with Permit." Denver's permit fee is $100 license fee compared to $230 initial application; $160 annual renewal; $54 annual Business Operations Tax in Sacramento. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Denver or Sacramento?
Denver charges 10.75% Lodger's Tax (combined city/county/state), while Sacramento charges 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments.
Which city has stricter fines for illegal short-term rentals?
Denver: $999/day for unlicensed operation. Sacramento: Contact city for current details. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Denver and Sacramento have day limits for Airbnb?
Denver has no annual day limit. Sacramento limits STRs to 90 nights per year.
Which city is better for first-time Airbnb hosts — Denver or Sacramento?
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. Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax with 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Automatic tax collection in Denver and Sacramento makes compliance easier for beginners.