Short-Term Rental Laws in San Diego, California

San Diego operates a 4-tier license system (effective 2023): Tier 1 (Home-Sharing — host present; broad availability), Tier 2 (Whole-Home, host's primary residence, ≤20 days/year), Tier 3 (Whole-Home, non-owner-occupied; capped at ~1% of total housing stock citywide, allocated by annual lottery), Tier 4 (Mission Beach Whole-Home, separately capped at ~30% of Mission Beach inventory). The Tier 3 lottery is extremely competitive — winning a Tier 3 license can require multiple years of applications. Tier 2 and Tier 1 are uncapped.

Tier 3 (non-owner-occupied whole-home) is the only investor-friendly path, and it's lottery-allocated. Most beach neighborhoods (Pacific Beach, Mission Beach, Ocean Beach, La Jolla) and Downtown have multi-year Tier 3 waitlists. Tier 4 is the special Mission Beach carve-out reflecting that neighborhood's historically dense STR concentration — also capped. Tier 1 (host present) and Tier 2 (primary residence, ≤20 nights) are available citywide subject to underlying residential zoning. HOA covenants stack on top.

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

San Diego Treasurer's Office and STRO Enforcement Division coordinate the program. Operating without a license: $1,000+ first violation, $4,000+ subsequent, daily accumulation. Annual renewal includes primary-residence verification (Tiers 1 and 2). Tier 3 license terms are typically 2 years and cannot be transferred between properties. The 2026 SB 346 state law extends platform data-sharing obligations to San Diego enforcement.

Combined short-term lodging tax in San Diego is approximately 10.500% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

California State sales-tax exempt for lodging + San Diego Transient Occupancy Tax 10.5% (8% city + 2.5% Tourism Marketing District assessment) on transient lodging

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