A Louisville short-term rental stay carries three taxes: Kentucky’s 6% sales tax, its 1% statewide transient room tax and Louisville Metro’s 8.5% transient room tax. Airbnb and Vrbo file the Metro tax on bookings they take. You file it monthly for direct bookings, and every host files a yearly net profit return.
Last reviewed October 2026
Most Louisville short-term rental guidance stops at the permit. That is the easy half. The half that quietly costs owners money is the tax stack underneath it: three separate taxes at three different levels of government, a filing rule that changes depending on how the guest booked, and a penalty schedule that compounds monthly whether or not anyone has noticed you yet.
This page covers the money side of Louisville compliance: what a guest actually pays, who is legally required to file each piece, what late filing costs, and what enforcement looks like when a rental is not registered. If you need the permit itself, the registration path, the Conditional Use Permit process and the 600 foot spacing rule, that is a separate guide: Louisville short-term rental permits, taxes and rules, the 2026 guide.
The Stack
The three taxes on a Louisville short-term stay
A guest booking a Louisville short-term rental pays tax to three separate authorities. None of them collect on behalf of the others, and each has its own rules about who files.
| Tax | Rate | Authority |
|---|---|---|
| Kentucky sales tax | 6% | Kentucky Department of Revenue |
| Kentucky statewide transient room tax | 1% | Kentucky Department of Revenue, under KRS 142.400 |
| Louisville Metro transient room tax | 8.5% | Louisville Metro Revenue Commission, under LMCO 121.01 |
| Combined | 15.5% | On the rent for every stay under 30 consecutive days |
That 15.5% sits on top of your nightly rate, and guests see it at checkout. It is worth knowing the number precisely, because it is the gap between the rate you set and the total a guest compares against a hotel. Sources: the Louisville Metro Revenue Commission transient room tax page and the Kentucky Department of Revenue transient room tax page.
The 30 day line is the one exemption that matters
Transient room tax does not apply to accommodations supplied for a continuous period of 30 days or more. Louisville calls a guest staying 30 consecutive days or more a Permanent Guest. The stay is still reported on the return for the period it ends in, but no transient tax is due on it. This is why a single 31 night booking can be worth more net than the nightly math suggests, and why a 29 night booking is not.
Who Files
Who files what, and the rule that decides it
There is one governing principle, and the Revenue Commission states it plainly: the entity that collects the payment for the accommodation is the entity required to file and remit the transient tax. Everything else follows from that.
| How you take bookings | Who files the transient return | What you must do |
|---|---|---|
| Platform only (Airbnb, Vrbo and other registered platforms) | The platform | Close your transient account |
| Platform plus direct bookings | Split: platform for its own bookings, you for direct ones | File monthly TR1M for direct stays only |
| Direct bookings only | You | File monthly TR1M for every stay |
Louisville names the platforms it has registered: Airbnb, Evolve Vacation Rental Network, HomeAway, Travelscape and Rocket Travel. If every one of your bookings comes through a registered platform, the Revenue Commission’s guidance is explicit that you are no longer required to file a monthly transient return and should close your transient account. Leaving it open invites failure-to-file penalties on returns you did not owe.
Direct bookings are where owners get caught
The moment you take one booking outside a registered platform, a monthly filing obligation starts for that stay. Returns must be filed electronically through the EMINTS portal, which has been mandatory for everyone subject to LMCO 121.01 since July 1, 2023. A direct booking taken as a favor to a repeat guest is still a taxable transient stay, and it still needs a return for that month.
The Sleeper
The tax almost nobody mentions
Ask most Louisville hosts what they owe and you will hear about the 8.5%. Very few mention the occupational license tax, and it applies to every one of them regardless of how they take bookings.
The Revenue Commission’s position is unambiguous: short-term rental hosts are deemed to be in the business of renting real property and are required to register with the Revenue Commission and file net profit returns on all rental income, including short-term rental income. The city’s own short-term rental page says the same thing, that hosts must register with the Revenue Commission and are responsible for remitting the transient room and occupational license taxes.
Platform collection does not touch this one
Airbnb remitting your 8.5% has no bearing on the net profit return. That obligation is yours in every configuration: platform-only, direct-only or mixed. It is the single most common gap we find when we take over a self-managed Louisville property, and unlike a missed transient return, it does not announce itself with a monthly notice.
Not Yours
One assessment you do not owe
Louisville also collects a Tourism Improvement District assessment of 1.5% of gross short-term room sales, on behalf of the Louisville Hotel Partnership. It appears in enough search results to worry owners, so it is worth being clear: the TID assessment applies to hotels with 51 or more rooms. A short-term rental does not fall within it, and only the Louisville Hotel Partnership can register a property for it in the first place. If you are running a house or a condo, this is not your assessment. Source: the Louisville Metro TID assessment page.
Late Filing
What filing late actually costs
The transient return and the tax are due by the last day of each month, covering rentals completed in the preceding month. May’s stays are due by June 30. Miss it and three separate charges can stack.
| What happened | Charge | How it accrues |
|---|---|---|
| Tax paid late | 5% of the unpaid tax | Applies whether or not the return itself was filed on time |
| Balance outstanding | 12% per year simple interest | Calculated daily from the due date until the date you pay |
| Return never filed | 5% per month or part month | Capped at 25% of the unpaid tax |
The failure-to-file penalty is the one that hurts, because it accrues on what the return would have shown to be due, and a part month counts as a full month. A return five months late is already at the 25% ceiling. Note also that the refund window runs only two years from the filing date or the payment date, whichever is later, and that the Revenue Commission will not refund tax you overpaid to a booking platform. That refund has to be pursued through the platform itself.
Enforcement
What operating unregistered costs
The permit side has its own penalty schedule, and it escalates by offense rather than by amount owed.
| Violation | Fine |
|---|---|
| First offense | $125 |
| Second offense | $250 |
| Third offense | $500 |
| Fourth and beyond | $1,000 |
| Advertising an unregistered rental | $125 per day |
Each day may be counted as a separate offense
That single line is what turns this schedule from an annoyance into a real number. A listing left up for a two weeks while a registration lapses is not one $125 fine. Metro also states that the Director may refuse to issue or renew a registration until outstanding penalties are paid in full, so an unpaid fine can block the very registration that would end the violation. Source: the city’s Short Term Rental Information page.
Enforcement does not rely on an inspector driving past. The registration status of every Louisville short-term rental is published on an interactive LOJIC map, and Metro invites residents to report suspected illegal rentals through 311 with the address and supporting evidence. A neighbor with a grievance and a browser is the realistic enforcement mechanism, and the map makes checking trivial.
The Calendar
A Louisville host’s compliance year
Almost every penalty above comes from a missed date rather than a misunderstood rule. The full year fits on one page.
| When | What | Who it applies to |
|---|---|---|
| Last day of every month | Transient room tax return and payment for the prior month, filed through EMINTS | Anyone taking direct bookings |
| Annually | Net profit return on all rental income | Every host, no exceptions |
| Annually | Registration renewal, $250 per property | Every registered rental |
| Once, then never again | Close the transient account if you move to platform-only booking | Platform-exclusive hosts |
Renewal is on you, not on Metro
The city says it will attempt to send reminders but that it is the host’s responsibility to know when to renew, and that failure to renew can result in penalties or loss of Conditional Use Permit approvals. Losing a CUP is the expensive outcome on this page. Regaining one means restarting a hearing process that typically runs 4 to 5 months, in a neighborhood where the 600 foot spacing rule may have closed the door in the meantime.
What We Handle
Tax and filing work we take off your desk
Transient tax, verified not assumed
We check what the platforms are actually collecting and remitting against what your bookings should have generated, rather than trusting a dashboard line.
- Transient account closed or maintained correctly for your booking mix
- Monthly TR1M filed through EMINTS for every direct stay
- The 30 day exemption applied correctly on long stays
Records ready for the net profit return
Gross rent, platform fees, cleaning, maintenance and management fees tracked through the year so the occupational tax filing is a handover, not an archaeology project.
- Monthly owner statements you can hand to an accountant
- Every expense categorized as it happens
- No scramble in the weeks before the return is due
Renewals treated as operating deadlines
Registration renewals are tracked against the date your permit was granted, not against a reminder letter that may or may not arrive.
- Renewal filed ahead of expiry, every year
- Conditional Use Permit standing protected
- Ordinance changes monitored and flagged to you
How we source this page
Rates, penalties, filing mechanics and fine amounts on this page are taken directly from Louisville Metro Revenue Commission and Louisville Metro Office of Planning publications, and from the Kentucky Department of Revenue, and were verified in October 2026. Tax rules change. This is operational guidance from a management company, not tax or legal advice, and it is not a substitute for your accountant on your own return.
Questions
Frequently asked questions
How much tax does a Louisville short-term rental guest pay?
15.5% in total on stays under 30 consecutive days: 6% Kentucky sales tax, a 1% Kentucky statewide transient room tax under KRS 142.400, and an 8.5% Louisville Metro transient room tax under LMCO 121.01. Stays of 30 continuous days or more are exempt from the transient room taxes, though they are still reported on the return for the period in which they end.
Does Airbnb file my Louisville transient room tax for me?
For bookings made through the platform, yes. Louisville registers Airbnb, Evolve, HomeAway, Travelscape and Rocket Travel as booking platforms that file and pay the 8.5% monthly. The governing rule is that whoever collects the payment files the tax. If you book exclusively through a registered platform you should close your own transient account. If you take any direct bookings, you file a monthly TR1M through the EMINTS portal for those stays.
What is the occupational license tax and do I have to file it?
Yes, and it applies no matter how you take bookings. The Louisville Metro Revenue Commission deems short-term rental hosts to be in the business of renting real property, which requires registering with the Commission and filing net profit returns on all rental income, including short-term rental income. Platform collection of the transient tax has no bearing on it. It is the most common filing gap we find on self-managed Louisville properties.
What are the penalties for filing Louisville transient tax late?
Paying late carries a 5% penalty on the unpaid tax, whether or not the return was filed on time, plus 12% per year simple interest calculated daily from the due date until payment. Failing to file the return adds 5% per month or part month of the tax the return would have shown, capped at 25%. Returns are due by the last day of the month following the month the stay was completed.
What is the fine for running an unregistered short-term rental in Louisville?
Fines escalate by offense: $125 for the first, $250 for the second, $500 for the third and $1,000 for the fourth and beyond, and each day may be treated as a separate offense. Advertising an unregistered rental carries additional fines of $125 per day. Metro may also refuse to issue or renew a registration until outstanding penalties are paid, and a lapsed registration can cost you a Conditional Use Permit. The registration path itself is covered in our Louisville permit and compliance guide.
Do I file Kentucky state taxes on direct bookings?
Yes. Kentucky’s 6% sales tax and its 1% statewide transient room tax under KRS 142.400 apply to direct bookings too. Airbnb and Vrbo collect and remit the 1% state tax for participating Kentucky hosts, and since March 14, 2025 the Kentucky Department of Revenue takes transient room tax returns through MyTaxes. For stays you book yourself, file both state taxes.
When is the Louisville transient room tax due?
By the last day of the month after the stay, so May stays are due by June 30. Direct bookings go on the TR1M return, filed through the EMINTS portal, which has been mandatory since July 1, 2023.
Do stays of 30 days or more pay transient room tax?
No. A guest who stays 30 or more consecutive days is a Permanent Guest in Louisville, and no transient room tax is due on that stay. Report it on the return for the month it ends.
Does the Tourism Improvement District assessment apply to my short-term rental?
No. Louisville’s 1.5% Tourism Improvement District assessment applies to hotels with 51 or more rooms, and only the Louisville Hotel Partnership can register a property for it. A house or condo run as a short-term rental does not owe it.
Primary sources for this guide, checked October 2026: Louisville Metro Revenue Commission, Transient Room Tax (8.5% under LMCO 121.01, TR1M, EMINTS, penalties, the 30-day exemption) · Kentucky Department of Revenue, Transient Room Tax (1% statewide tax, MyTaxes since March 14, 2025) · KRS 142.400 (statewide transient room tax) · Louisville Metro, TID assessment (1.5%, hotels with 51 or more rooms) · Louisville Metro Office of Planning, Short Term Rental Information (registration, renewals and the fine schedule).
