Short-Term Rental Laws in Birmingham, Alabama

Birmingham permits STR with a distinction between owner-occupied and non-owner-occupied operations. Owner-occupied STRs (operator's primary residence) are permitted broadly across residential zones with a city Business License + life-safety self-certification. Non-owner-occupied STRs are subject to zoning verification — permitted by right in commercial mixed-use zones (B-1, B-2, MXD), restricted in single-family residential (R-1, R-2, R-3) zones where they may require conditional-use board approval. Some neighborhoods (Highland Park, Forest Park, Crestline, English Village) have neighborhood-overlay restrictions on STR; confirm overlays via Birmingham Planning before purchase.

Non-owner-occupied STR permitted by right in: B-1/B-2 Business, MXD Mixed-Use, CBD Central Business District, and select Office District zones. Single-family residential (R-1, R-2, R-3) zones may require Board of Zoning Adjustment conditional-use approval for non-owner-occupied STR. Neighborhood overlays in Highland Park, Forest Park, Crestline, and English Village add additional restrictions or review requirements. Confirm parcel zoning + applicable overlays via Birmingham Planning Department before any offer.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Birmingham Revenue Department + Code Enforcement administer. Annual Business License renewal + lodgings tax registration. Operating without a Business License or lodgings tax registration: back-tax assessment + civil penalties. AL Department of Revenue cross-references platform data against the state Lodgings Tax registry. Conditional-use violations (non-owner-occupied in R-1/R-2/R-3 without BZA approval) handled by Code Enforcement with cease-rental orders + daily fines.

Combined short-term lodging tax in Birmingham is approximately 17.500% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

AL State sales tax 4% + AL State Lodgings Tax 5% + Jefferson County local option 2% + Birmingham city lodgings tax 6.5% — combined ~17.5% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.