Short-Term Rental Laws in Louisville, Kentucky

Louisville operates a two-track STR framework (Land Development Code §4.2.59). Hosted (owner-occupied) STRs — host's primary residence with operator present — are permitted by right in most residential zones. Non-hosted (whole-home, non-owner-occupied) STRs are subject to density and spacing limits: in single-family residential districts (R-4, R-5, R-5A, R-5B, R-6, R-7, R-8A) non-hosted STRs require 600 ft minimum spacing from another non-hosted STR and a Conditional Use Permit. The 2020 amendments tightened the spacing rule and added the registration requirement. Multi-family zones (R-8B, R-R, OR) and commercial/mixed-use zones have looser density limits.

Allowed zones: hosted STRs in all residential and mixed-use zones; non-hosted STRs in R-4 through R-8A only with Conditional Use Permit + 600-ft spacing test, and in R-8B/R-R/OR/commercial without the CUP requirement but still subject to spacing. The CUP process runs through Planning Commission and includes public notice + neighborhood comment period — figure 60-120 days from application to decision. Properties within a Local Preservation District (Old Louisville, Cherokee Triangle, Butchertown) have additional design review overlays.

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

Louisville Metro Develop Louisville (planning + zoning) and Codes & Regulations jointly enforce. Registration is annual via the Short-Term Rental Registry portal. Operating without registration: civil penalties starting at $500 per violation, escalating with continuing violations. The Codes Department cross-references Airbnb/Vrbo listings against the registry. Non-hosted operators must also remit Transient Room Tax monthly to the Louisville Metro Revenue Commission — non-remittance triggers back-tax + interest + penalties separately from the planning-side enforcement.

Combined short-term lodging tax in Louisville is approximately 16.070% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Kentucky State sales tax 6% + Louisville-Jefferson County Transient Room Tax 8.5% + Tourism Development Tax + Convention Center surcharge — combined ~16.07% on transient lodging; confirm at Louisville Revenue Commission

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