Is Airbnb legal in Lexington, Kentucky?

Short-term rentals are restricted in parts of Lexington. See the regulation breakdown below.

How much does an STR permit cost in Lexington?

Permit costs for Lexington are being verified. Check back soon.

What is the occupancy tax rate for short-term rentals in Lexington?

Short-term rentals in Lexington are subject to a tax rate of 14.420%.

Short-Term Rental Laws in Lexington, Kentucky

Last verified: 2026-05-24

Status

Restricted

Permit Fee

—

Tax Rate

14.420%

Occupancy Cap

—

Regulation Breakdown

Restrictions

Lexington-Fayette Urban County Government regulates STRs through the Code of Ordinances (Chapter 14 + zoning ordinance). Owner-occupied STRs are permitted broadly in residential zones. Non-owner-occupied STRs are restricted to specific zoning classifications and require a Conditional Use Permit from the Board of Adjustment. The 2021 ordinance update added registration, life-safety, and TRT-collection requirements. UK basketball weekends + Keeneland racing meets + horse-farm tourism are the seasonal demand drivers.

Zoning

Owner-occupied STRs permitted in R-1A, R-1B, R-1C, R-1D, R-1E, R-2, R-3, R-4, R-5 residential zones by right. Non-owner-occupied STRs in residential zones require BoA Conditional Use Permit with public notice + neighborhood review. B-1, B-2, B-3, B-4 business zones and mixed-use zones permit STR more readily. Properties in the Local Historic Districts (e.g., Gratz Park, North Limestone) have design-review overlays on top of zoning. Confirm parcel zoning + any overlay districts via the LFUCG Division of Planning before purchase.

Permit & Registration

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

Enforcement

LFUCG Division of Code Enforcement administers the STR registration program. Annual renewal. Registration application requires designated 24/7 local contact (Fayette County resident or property manager), proof of property insurance, life-safety self-certification, and parking plan. Operating unregistered: civil penalties + back-TRT assessment. Division of Revenue cross-checks platform listings against the TRT-payer registry — back-tax + interest + penalties for non-remittance.

Tax

Combined short-term lodging tax in Lexington is approximately 14.420% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Kentucky State sales tax 6% + Lexington-Fayette Urban County Transient Room Tax 8.42% — combined ~14.42% on transient lodging; confirm at LFUCG Division of Revenue

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

Nearby Cities

STR regulations vary by jurisdiction. Compare Lexington against nearby markets.

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