Massachusetts Airbnb and Short-Term Rental Regulations (2026 Guide)

Massachusetts — from Cape Cod and Martha's Vineyard to the Berkshires and Boston — consistently ranks among the top STR markets in the Northeast. Whether you already own a vacation rental in Massachusetts or are evaluating your first investment, understanding the regulatory landscape is essential. STR laws in Massachusetts vary significantly by city and county — and getting compliance wrong can mean fines, forced delistings, or lost income.

This guide covers Massachusetts's approach to short-term rental regulation at the state level, then breaks down the rules in key markets investors and hosts need to know. Regulations as of 2026 — always verify current rules directly with your local municipality before listing.

If you'd like help navigating STR compliance in Massachusetts, Awning's property management team operates in Cape Cod, Martha's Vineyard, and the Berkshires and helps hosts stay compliant while maximizing revenue.

How Massachusetts Defines a Short-Term Rental

For regulatory and tax purposes, a short-term rental in Massachusetts is generally defined as a residential property rented for 31 consecutive days or fewer. Any rental longer than this threshold is typically treated as a long-term rental and subject to different rules.

Does Massachusetts Require a Statewide STR License?

Massachusetts passed statewide STR legislation in 2018. All STR operators must register with the state through the Department of Revenue and collect the room occupancy excise tax.

Massachusetts Short-Term Rental Taxes

Massachusetts levies a 5.7% state excise tax on STRs under 31 days, plus a local option tax of up to 6% (up to 6.5% in Boston). Cape Cod and Martha's Vineyard communities may charge an additional Community Impact Fee of up to 3%. Airbnb collects and remits the state tax; local taxes vary by jurisdiction.

Regardless of which booking platform you use, it is your responsibility as a host to ensure all applicable taxes are collected and remitted correctly. Failure to comply can result in penalties, back taxes, and potential loss of your ability to operate.

STR Regulations by City in Massachusetts

Below are the key STR markets in Massachusetts and their current regulatory requirements. City regulations change frequently — check with your local planning or licensing department for the most current rules before investing.

Boston

Boston requires STR hosts to obtain a Short-Term Rental License through the Inspectional Services Department. Only owner-occupants may list their primary residence. Non-owner-occupied STRs are banned in most Boston neighborhoods, with limited exceptions.

Cape Cod towns

Most Cape Cod towns (Barnstable, Chatham, Provincetown) have registration and tax requirements on top of state rules. Barnstable requires a lodging certificate and imposes strict septic and occupancy standards for vacation rentals.

Nantucket

Nantucket has some of the strictest STR rules in Massachusetts, requiring a specific vacation rental permit. The Select Board has debated caps on the total number of licensed STRs to protect year-round housing availability.

Key Questions to Ask Before Listing an STR in Massachusetts

• Does your city or county require an STR permit or license?
• Are there caps on the number of STR permits in your neighborhood or zone?
• Is your property owner-occupied or non-owner-occupied — and does that distinction affect your eligibility?
• What occupancy, noise, and parking rules apply to your specific property?
• Which taxes are you responsible for collecting and remitting vs. what the platform handles?
• Does your HOA or condo association allow short-term rentals?

The Bottom Line

Massachusetts's STR regulatory environment ranges from investor-friendly rural counties to tightly regulated resort towns and urban cores. Understanding the specific rules in your target market — not just at the state level — is what determines whether your rental operates smoothly or faces costly disruptions.

Staying on top of changing regulations is one of the most valuable things a professional property manager brings to your operation. Awning manages short-term rentals in Cape Cod, Martha's Vineyard, and the Berkshires and monitors local regulatory changes so you don't have to. Reach out to learn how we can help you operate compliantly and profitably in Massachusetts.