Idaho Short-Term Rental Law: Cities Cannot Ban or License Your Airbnb (2026)
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Most of the internet describes an Idaho short-term-rental world that no longer exists. As of July 2026, Idaho has the broadest STR preemption in the country: cities cannot ban these rentals, and they can no longer license, permit, or charge a fee for them either.
Can an Idaho city ban or license my Airbnb?
No, by statute, as of July 2026. Two laws stack here. Idaho Code §67-6539 has said since 2017 that Idaho cities cannot ban short-term rentals; a locality may pass reasonable health and safety rules, but only if they don't treat an STR differently from an ordinary single-family home. Then HB 583, signed March 16, 2026 and effective July 1, 2026, removed the licensing lever entirely: no city or county may require a license, permit, fee, certification, or registration to operate an STR, and it also bars owner-occupancy mandates, professional-management mandates, extra-insurance mandates, usage reporting, numerical caps, and neighbor-proximity rules.
The practical translation for an investor: you do not need a city STR permit to operate a short-term rental anywhere in Idaho. That is the opposite of what most out-of-state buyers assume, and it is why so much competing web content is stale.
What can Idaho cities still require of a short-term rental?
Only baseline safety, and only if the same rule applies to non-STR homes too. Under §67-6539 as amended, a locality may require working smoke alarms in sleeping areas, a fire extinguisher and a carbon-monoxide detector per floor, removable escape ladders from upper-floor sleeping rooms, occupancy limits consistent with the International Building Code, and an easily accessible safety handout listing exits, the extinguisher, a first-aid kit, and an emergency contact. General ordinances that apply to everyone (noise, parking, nuisance, traffic) still apply. What a city cannot do is require a license, charge an STR-specific fee, cap the number of rentals, or force owner-occupancy.
What HB 583 preempted, city by city
Several Idaho cities ran real STR permit regimes before 2026, and they are now superseded. Boise's own STR license requirement ended May 18, 2026, ahead of the statewide date, so no city license applies there. The prior permit and inspection regimes in McCall, Coeur d'Alene, and Sandpoint are preempted as well. Ketchum, the one Blaine County city with an STR-specific license, was moving through its own repeal; regardless of that local timeline, HB 583 supersedes local STR licensing as of July 1, 2026. If a city's website or ordinance text still reads as if a permit is required, the statute controls, and you should confirm the current posture before you list. City-by-city detail: Idaho STR rules by city.
How taxes work now: platforms remit
Preemption removed local licensing, not taxes. Under the 2026 framework, short-term-rental platforms such as Airbnb and Vrbo register with the Idaho State Tax Commission and collect and remit the applicable taxes on bookings, including the 6% state sales tax and, in resort cities, the local-option tax (Sun Valley reaches 9%, McCall 7%). That belongs in your operating model, not your loan qualification: underwriting uses gross rent before those taxes. The financing side of an Idaho STR is in short-term rental loans, and the resort economics in Sun Valley and McCall.
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Frequently asked questions
Can Idaho cities ban short-term rentals?
No. Idaho Code §67-6539 has barred cities and counties from banning any type of short-term rental since 2017, classifying STRs as nontransient residential use. Localities may impose only narrow health and safety rules that apply equally to non-STR homes. The Idaho Supreme Court reinforced this in the City of Lava Hot Springs decision (May 21, 2025).
Does Boise require a short-term rental license in 2026?
No. Boise's own STR license requirement ended May 18, 2026, ahead of the statewide preemption, so no city STR license applies in Boise. HB 583 then barred every Idaho city and county from requiring an STR license or permit as of July 1, 2026. Only baseline safety rules remain.
Do I need a permit to run an Airbnb in McCall, Coeur d'Alene, or Sandpoint?
No, not anymore. Idaho HB 583 (signed March 16, 2026, effective July 1, 2026) bars cities from requiring any STR license, fee, permit, or registration statewide, so the prior permit regimes in McCall, Coeur d'Alene, and Sandpoint are preempted. Confirm the current local posture before listing, since a city page may lag the statute.
What can Idaho cities still require of a short-term rental?
Only baseline safety items applied equally to all housing: working smoke alarms, a fire extinguisher and CO detector per floor, removable escape ladders from upper-floor bedrooms, International Building Code occupancy limits, and a safety-info handout. No license, fee, numerical cap, or owner-occupancy rule is allowed under HB 583.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. Short-term-rental law, tax figures, and fees change; verify current requirements with the city or county, your CPA, or an Idaho real estate attorney before you buy. Loans are subject to buyer and property qualification.