Rules by Town
Short-term means stays of fewer than 30 nights.(Wis. Stat. 66.0615) Every town below also needs the Dane County tourist rooming house license for anything over 10 nights a year (below).(Wis. Stat. 66.1014) We found a local rule for 10 of 15 towns.
| Town | Local license and limits | Room tax |
|---|---|---|
| Cottage Grove | No local rule found on the Cottage Grove website. Ask the clerk before you list it (municipal code). | 8%(Wisconsin DOR) |
| DeForest | No local rule found on the DeForest website. Ask the clerk before you list it (municipal code). | 8%(Wisconsin DOR) |
| Fitchburg | City Short-Term Rental License ($150/yr) Needs an annual City license, a City building inspection and a notarized affidavit that the rental is your primary residence.(Fitchburg) | 8%(Wisconsin DOR) |
| Madison | Zoning Tourist Rooming House Permit (ZTRHP) + City transient room tax permit Only in the host's primary home (lived there 12 months first), and no more than 30 nights a year when the host isn't home.(Madison) | 10%(Wisconsin DOR) |
| Maple Bluff | Village medium-term rental license No rentals of 6 nights or fewer; 7-29 night rentals allowed up to 180 consecutive days a year with a Village license.(Maple Bluff) | None on file with DOR |
| McFarland | Village Tourist Rooming House Permit Village permit required; permits issued after June 4, 2026 need 7-night minimum stays and one 180-day operating period a year.(McFarland) | 8%(McFarland) |
| Middleton | Annual City Short-Term Residential Rental License + City Room Tax Permit Stays of 1-6 nights only in the operator's primary home, capped at 30 days a year when the operator isn't there; 7-28 night stays limited to 180 consecutive days a year.(Middleton) | 8%(Wisconsin DOR) |
| Monona | City Short Term Rental Permit ($750) City permit required for any rental days, with health, building and fire inspections and quarterly reports.(Monona) | 8%(Wisconsin DOR) |
| Mount Horeb | Village Short-Term Residential Rental License ($100 application) Allowed in all zoning districts with a Village license, 2-night minimum stay, max 2 guests per bedroom and neighbor notice.(Mount Horeb) | 8%(Wisconsin DOR) |
| Oregon | No local rule found on the Oregon website. Ask the clerk before you list it (municipal code). | 8%(Oregon) |
| Shorewood Hills | Village Short-Term Rental License Annual Village license, primary residence required, and stays under 3 nights only with the host on site overnight.(Shorewood Hills) | None on file with DOR |
| Stoughton | No local rule found on the Stoughton website. Ask the clerk before you list it (municipal code). | 8%(Wisconsin DOR) |
| Sun Prairie | No local license No city short-term rental ordinance or license; the Dane County (PHMDC) license is still required.(Sun Prairie) | 7%(Wisconsin DOR) |
| Verona | Annual City Short-Term Rental License ($100/yr, 2026) Annual City license; stays must be 7+ nights unless the owner signs an affidavit that their primary home is within 25 miles.(Verona) | 7%(Wisconsin DOR) |
| Waunakee | No local rule found on the Waunakee website. Ask the clerk before you list it (municipal code). | 5%(Wisconsin DOR) |
Room tax rates are from the Wisconsin Department of Revenue's list, compiled from the towns' 2025 room tax reports.(Wisconsin DOR) "None on file" means the town isn't on that list, not a confirmed zero. Town rules are summaries; read the linked page before you list.
What State Law Allows
- A city, village, town or county can't ban renting a home for 7 consecutive days or longer.(Wis. Stat. 66.1014)
- For stays of 7 to 29 days, it can cap the total rental days in any 365-day period, but not below 180 days. It can require those days to run consecutively, but can't choose which part of the year.(Wis. Stat. 66.1014)
- A homeowner renting this way must tell the clerk in writing when the first rental in a 365-day period begins.(Wis. Stat. 66.1014)
- Anyone renting more than 10 nights a year needs the state tourist rooming house license, plus a local license where the town requires one.(Wis. Stat. 66.1014)
The Tourist Rooming House License
Wisconsin's legal name for a short-term rental is a tourist rooming house.(DATCP) In Dane County, Public Health Madison & Dane County issues the license and inspects before you can rent. The licensing year runs July 1 to June 30.(PHMDC)
- Fees from May 4, 2026, for the smallest tier: $337.44 local annual fee, $41.44 state fee and $562.50 pre-inspection, $941.38 in all for a new license.(PHMDC fee schedule)
- Operating without a license carries a $375 fee.(PHMDC fee schedule)
- Check zoning first: Madison Zoning in the city, or your clerk elsewhere in the county.(PHMDC)
Sales Tax and Room Tax
- Lodging for less than a month is subject to Wisconsin sales tax. Hosts renting directly must collect and remit it; on bookings through a marketplace provider such as Airbnb or VRBO, the provider remits it.(Wisconsin DOR Pub. 219)
- A marketplace provider that collects sales tax on a booking must also collect the local room tax. Hosts who rent directly are responsible for room tax themselves and should contact the town.(Wisconsin DOR Pub. 219)
- State law caps room tax at 8%, with narrow exceptions.(Wis. Stat. 66.0615) Madison's 10% rate is one of them.(Wisconsin DOR)
Madison in Detail
- Three permits before you operate or advertise: the county tourist rooming house license, a City room tax permit and a City zoning permit.(City of Madison)
- The City's rules require the rental to be the host's primary home, for the 12 months before starting. When the host isn't staying there, it can run no more than 30 days per licensing year.(City of Madison)
- Zoning permit: $300 to apply and $100 a year. Guests: twice the legal bedrooms or 12, whichever is less, not counting children under 12. Quarterly reports are due Feb. 1, May 1, Aug. 1 and Nov. 1.(City of Madison)
- Tenants can host only if their lease explicitly allows it, and an owner living in the main house can't rent the ADU short-term.(City of Madison)
- Room tax is paid to the City quarterly.(City of Madison)
Recent Court Rulings
Several towns above require the rental to be the owner's primary residence. In 2025 the Wisconsin Court of Appeals held that Neenah's primary-residence requirement conflicted with state law, and in July 2026 it described that ruling as reading the statute "to bar restrictions on short-term rentals beyond timing limits alone."(Clinton v. Village of Sister Bay, 2025AP1825) Towns are still listing these rules. If one affects you, ask the town how it applies it, and talk to a lawyer before you rely on either side.
Renting long-term instead? See the landlord rules checklist and renting part of your home. Building a backyard unit? Start with the ADU guide.
Free Help
- Tenant Resource Center, a Madison nonprofit with information for tenants and landlords.(Tenant Resource Center) Rental Rights Hotline: 608-257-0006. It also offers housing counseling for both sides and mediation for disputes such as security deposits and lease violations.(City of Madison)
- Legal Action of Wisconsin: apply for free legal help at (855) 947-2529. Not everyone qualifies. Its housing work covers evictions, housing conditions and security deposits.(Legal Action of Wisconsin)
- State Bar Lawyer Referral and Information Service: (800) 362-9082. The court doesn't appoint lawyers in eviction cases.(Dane County Circuit Court)
- DATCP Consumer Protection, the state agency that enforces ATCP 134: (800) 422-7128 or DATCPHotline@wisconsin.gov.(DATCP)
- City of Madison: Building Inspection takes housing code complaints at 608-266-4551,(City of Madison) and the Department of Civil Rights takes housing discrimination complaints at 608-266-4910.(City of Madison)
Questions
Is Airbnb legal in Madison?
Yes, with three permits: a Public Health Madison & Dane County tourist rooming house license, a City room tax permit and a City zoning permit. The City's rules limit it to the host's primary home, and to 30 nights a year when the host isn't staying there.
Do I need a license to rent my house on Airbnb in Dane County?
If you rent it more than 10 nights a year, state law requires a tourist rooming house license, which Public Health Madison & Dane County issues in Dane County. Many towns also require their own license.
Who collects room tax on Airbnb and VRBO bookings?
A marketplace provider that collects Wisconsin sales tax on a booking must also collect the local room tax. If you rent directly, you're responsible for it, so contact the town.
Can a town ban short-term rentals?
Not stays of 7 nights or longer. For stays of 7 to 29 nights, a town can cap the total at no fewer than 180 days a year. Shorter stays can be regulated more tightly.