Key West vs Palm Springs

Florida Restricted | California Legal but Limited

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

Key West, Florida
Status Restricted
Permit Fee $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee
Tax Rate 12.5% combined (5% county tourist dev. + 7.5% state sales)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $5,000/violation and 60 days imprisonment; each day is separate
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

Palm Springs has more favorable STR regulations overall.

Permits & Licensing

Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee for STR licensing, while Palm Springs charges $1,072/year Vacation Rental Certificate; $642/year Junior Certificate. Key West renewal is annual, and Palm Springs renewal is annual. Overall, Palm Springs has a more permissive regulatory environment (Legal but Limited) compared to Key West (Restricted).

Tax Obligations

In Key West, hosts pay 12.5% combined (5% county tourist dev. + 7.5% state sales). 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 Key West face penalties including Up to $5,000/violation and 60 days imprisonment; each day is separate. 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.

Key West Overview

Moratorium on new transient rental licenses — only grandfathered properties may operate STRs under 28 days. Existing licenses are property-specific and command $400K+ on the secondary market. Florida DBPR state license also required.

Contact: Key West Licensing Division — (305) 809-3959

Full Key West 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 Key West or Palm Springs?
Key West is classified as "Restricted" while Palm Springs is "Legal but Limited." Key West's permit fee is $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee compared to $1,072/year Vacation Rental Certificate; $642/year Junior Certificate in Palm Springs. Overall, Palm Springs has a more host-friendly regulatory environment.
Which city has higher STR taxes — Key West or Palm Springs?
Key West charges 12.5% combined (5% county tourist dev. + 7.5% state sales), while Palm Springs charges 12.5% combined (11.5% TOT + 1% TBID).
Which city has stricter fines for illegal short-term rentals?
Key West: Up to $5,000/violation and 60 days imprisonment; each day is separate. 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 Key West and Palm Springs have day limits for Airbnb?
Key West has no annual day limit. Palm Springs has no annual day limit.
Which city is better for first-time Airbnb hosts — Key West or Palm Springs?
For new hosts, consider the total cost of entry: Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee for permits with 12.5% combined (5% county tourist dev. + 7.5% state sales) 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 Key West and Palm Springs makes compliance easier for beginners.