Short-Term Rental Laws in Annapolis, Maryland

Annapolis caps the citywide total of non-owner-occupied STR licenses at 105 (the so-called "Annapolis 105" cap), with the cap allocated by application date and renewals required annually. Owner-occupied STRs are uncapped. The 2020 ordinance distinguishes "Limited" (owner-occupied — host present or primary residence) from "Unlimited" (non-owner-occupied investor) licenses, with the cap applying only to the Unlimited category. New investor entrants typically face a multi-year waitlist; the cap has been at-capacity since shortly after implementation.

Both Limited (owner-occupied) and Unlimited (non-owner-occupied) STR licenses are allowed across most Annapolis zoning districts (R-1, R-2, R-3, R-4, B-1 through B-3, mixed-use, Maritime, etc.). The 105-unit citywide cap is the binding gate for investor STRs, not the zoning class. Historic District properties (the dense colonial core around State Circle / Main Street) carry additional Historic Preservation Commission review for any exterior/signage changes — that does not block the STR license but slows the application.

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

Annapolis Planning + Zoning administers the program. Annual renewal. Operating without a license triggers civil fines and a stop-rental order. The 105-unit cap is hard — no exceptions, even for hardship cases. Anne Arundel County's separate STR registration framework applies to properties outside the Annapolis city limits (e.g. Edgewater, Davidsonville, Crownsville) — those are county jurisdiction, not city, and the county's rules are notably more permissive.

Combined short-term lodging tax in Annapolis is approximately 13.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Maryland State sales tax 6% + Anne Arundel County Hotel Tax 7% — combined ~13.0% on transient lodging

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