Annapolis Short-Term Rental License: 2027 Guide for Owners

Updated October 2026. This guide summarizes public City of Annapolis and Anne Arundel County rules for homeowners. It is not legal advice. Rules change, so confirm the details with the City or County before you apply.

If you own a home in or around Annapolis and you’re thinking about renting it on Airbnb or Vrbo, the first question isn’t about pricing or photos. It’s about the license. Annapolis has some of the tightest short-term rental rules in Maryland, and 2026 brought two big changes: a cap on rentals per block and a one-year pause on most new licenses. Here’s what owners need to know heading into 2027.

Step 1: Is your home in the City of Annapolis or in Anne Arundel County?

This decides which rules apply. A mailing address that says “Annapolis, MD” doesn’t mean the home is inside city limits. Much of the 21401, 21403 and 21409 area is actually unincorporated Anne Arundel County.

• Inside city limits (Historic Downtown, Eastport, West Street and other City neighborhoods): you need a City of Annapolis short-term rental operating license. City rentals don’t also register with the County.
• Outside city limits (for example, Bay Ridge, Cape St. Claire, Arnold or Severna Park): you need an Anne Arundel County short-term residential rental registration.

If you’re not sure, look up your property on the State Department of Assessments and Taxation (SDAT) site or ask the City’s Planning and Zoning office.

City of Annapolis: the rules for 2027

The 2026 moratorium on new licenses

On March 9, 2026, the Annapolis City Council adopted Ordinance O-40-25: a 12-month moratorium on new non-owner-occupied short-term rental licenses. It took effect immediately and runs into March 2027.

• Not affected: owner-occupied rentals (where the owner lives in the home as their primary residence) and renewals of existing, valid licenses, as long as the license holder is in full compliance at renewal.
• Affected: new licenses for homes the owner doesn’t live in. Applications that were pending when the moratorium started were put on hold too.
• What happens next: the City must deliver a report on short-term rentals at least 60 days before the moratorium ends, and the Council may change the rules after that. Watch for news in early 2027.

Don’t let a license lapse

This is the costliest mistake an Annapolis owner can make right now. City licenses renew every year. You can renew starting 120 days before expiration, and the City expects renewals at least 30 days before it. In a 2026 appeal, the City treated a renewal filed a few days after expiration as a new application. Under the moratorium, that meant no license. If you hold a City license today, put the renewal date on your calendar and file early.

The 10% blockface cap

Under Ordinance O-17-25 (2025), the number of non-owner-occupied short-term rental licenses on any blockface (both sides of one block of a street) is capped at 10% of the residential units on it. A blockface with fewer than ten homes can have at most one.

• On blocks already over the cap, existing licenses can keep renewing until November 1, 2027. After that, renewals that keep a block over its limit won’t be processed.
• Over-cap blocks then move to a public lottery from a waiting list. Priority goes first to renewals by Annapolis or Anne Arundel County residents, then new applications by local residents, then renewals by owners who live elsewhere.
• On an over-cap block, the license can’t be transferred. Selling the home ends the license at the end of its term, which matters if you’re buying or selling a rental.
• Owner-occupied rentals are exempt from the cap. So are rentals limited to the boat shows and Commissioning Week.

Who can hold a City license

• One license per person. Each licensee can hold one short-term rental license for one dwelling unit. That count includes any LLCs or other entities you have an ownership interest in.
• The owner is the license holder. The property owner applies, and the license stays in the owner’s name.
• Local contact required. If you don’t live in the City, you must use a local property manager with a residence or commercial office inside city limits. That manager must be reachable by phone at all times for safety or police issues, and you must tell the City within five days if your manager changes.

What the City checks

• An application in the City’s Citizen Self-Service (CSS) portal, with your Maryland sales and use tax license attached
• Approval from your condo, HOA or community association, if its rules require it
• An annual inspection, including hard-wired smoke alarms outside and inside each sleeping area and on every floor
• Your license number shown on every listing and ad (Airbnb, Vrbo, your own website)
• No exterior signs advertising the rental, at least one guest age 21 or older on every stay, and no stays over 90 days to one tenant
• Guest records (names, addresses, phone numbers), available to the City on request

The City’s licensing page currently lists the annual fee at $650 for owner-occupied and $750 for non-owner-occupied short-term rentals. Check the City’s current fee schedule before you apply.

Renting only for Commissioning Week or the boat shows?

Homes rented only during U.S. Naval Academy Commissioning Week and the spring and fall sailboat and powerboat shows don’t need a paid license. They do need a free registration in the CSS portal for tax purposes, and taxes still apply to those stays. For many owners this is the easiest way to start. Commissioning Week is one of the highest-demand weeks of the year in Annapolis. See our Commissioning Week rentals page.

Anne Arundel County (outside city limits)

County rules are simpler, and there’s no moratorium.

• Registration with the Department of Inspections and Permits, online through the Land Use Navigator system, in person at the Permit Center, or by mail
• Fee: $100 for a two-year registration. Renew at least 30 days before it expires.
• Limit: a host can register no more than two dwelling units. Units owned through related people or entities count together.
• What you’ll need: a copy of your deed or settlement sheet, proof of insurance that covers rental use, HOA approval if required, and a sworn certification that the home meets the County’s safety checklist
• Ongoing rules: stays of at least 24 hours, your registration number on every listing, a sign inside the home showing the registration number, a local emergency contact for guests when you’re not on site, and records kept for three years
• Accessory dwelling units can be rented short-term only if the main house or the ADU is owner-occupied

Taxes on Annapolis short-term rentals

Two taxes apply to stays of 120 consecutive days or less:

• Maryland sales and use tax: 6% of the rent, cleaning fees included. You’ll need a Maryland sales and use tax license from the Comptroller.
• Anne Arundel County hotel (occupancy) tax: 8% of the rent (up from 7% on July 1, 2023). Inside city limits, the City collects it through the CSS portal. Outside the City, you file with the County.

Airbnb and Vrbo collect and remit these taxes for bookings made on their platforms. That doesn’t take you off the hook. City license holders still file a monthly occupancy tax report in the CSS portal, even in months with no bookings. Direct bookings and any channel that doesn’t remit for you are your responsibility. Cancellation and no-show fees can be taxable too.

Your 2027 checklist

1. Confirm whether your home is in the City or the County.
2. City, already licensed: note your expiration date and renew early, at least 30 days before. Keep your tax filings current so you’re “in full compliance” at renewal.
3. City, not licensed: if you don’t live in the home, new licenses are on hold until about March 2027. Look at an owner-occupied setup, event-only registration for Commissioning Week and the boat shows, or rentals of 90 days or longer.
4. Check your blockface. If it’s near or over 10%, plan for November 1, 2027.
5. County: register (two-year term), add your number to every listing, and post the sign inside the home.
6. Get your Maryland sales and use tax license, and set up monthly tax filing.
7. Confirm your insurance covers short-term rental use. A standard homeowner policy often doesn’t.

Where a property manager fits in

Licensing in Annapolis is now as much about deadlines as paperwork: renewal windows, monthly tax reports and a rule change likely in 2027. At The House Kee, our partner LodgeCompliance reports and remits lodging and sales taxes and tracks licenses, registrations and renewals for the homes we manage. Your license stays in your name, and you can see where everything stands. Learn more about our Annapolis vacation rental management.

Not sure your home can be licensed, or what it could earn? Request a free earnings analysis. We’ll look at your address, the rules that apply and real demand in your neighborhood, then walk you through it on a short call.

Frequently asked questions

Do I need a license to rent my home on Airbnb in Annapolis?

Yes. Inside city limits you need a City of Annapolis short-term rental operating license, or a free registration if you rent only during Commissioning Week and the boat shows. Outside city limits you need an Anne Arundel County short-term residential rental registration.

Can I get a new short-term rental license in Annapolis right now?

Only for an owner-occupied home. Since March 9, 2026, the City has paused new non-owner-occupied licenses for 12 months. Renewals of existing, valid licenses can continue. The County isn’t under a moratorium.

What is the Annapolis blockface cap?

Non-owner-occupied short-term rentals are limited to 10% of the homes on each blockface, or one on blocks with fewer than ten homes. Over-cap blocks can keep renewing until November 1, 2027. After that, licenses there are awarded by lottery.

What taxes apply to Annapolis short-term rentals?

Maryland’s 6% sales and use tax and Anne Arundel County’s 8% hotel occupancy tax on stays of 120 days or less. Airbnb and Vrbo remit for their own bookings, but City license holders still file monthly reports.

Can I rent my Annapolis home just for Commissioning Week?

Yes. Rentals limited to Naval Academy Commissioning Week and the spring and fall boat shows need only a free City registration, not a paid license. Taxes still apply to those stays.