Short-Term Rental Laws in Paducah, Kentucky

Paducah operates a relatively permissive STR framework — permitted broadly across residential and commercial zones with registration + life-safety standards + TRT collection. The city's identity as a UNESCO Creative City of Crafts + National Quilt Museum + Lower Town Arts District has positioned tourism + STR-friendliness as a deliberate policy choice. The Lower Town Arts District and downtown riverfront historic blocks have additional design-review overlays for exterior modifications, but STR use itself is broadly permitted within those overlays.

Zoning: STRs permitted in residential zones (R-1, R-2, R-3, R-4) and commercial zones (B-1, B-2, B-3) with registration. The Lower Town Arts District and the Historic Downtown overlay add design-review requirements via the Historic & Architectural Review Commission for exterior work. Multi-family zones permit STRs more readily. Confirm parcel zoning + any overlay assignment via the Paducah Planning Department before purchase.

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

Paducah Planning Department + Code Enforcement administer. Annual registration renewal. Application requires designated local 24/7 contact, proof of property insurance, life-safety self-certification, and parking plan. Paducah Tourism Commission + McCracken County Treasurer collect the Transient Room Tax — monthly remittance for active operators. Enforcement is primarily complaint-driven (noise, parking) rather than zoning-driven given the broad permission.

Combined short-term lodging tax in Paducah is approximately 11.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Kentucky State sales tax 6% + McCracken County Transient Room Tax + Paducah city occupational tax — combined ~11% on transient lodging; confirm at Paducah Tourism Commission

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