Jackson, WY Airbnb & Short-Term Rental Regulations 2026
Everything you need to know about operating a legal short-term rental in Jackson, Wyoming. Licensing, taxes, zoning, and 2026 compliance requirements.
Jackson STR Regulation Overview
Jackson, Wyoming sits at the gateway to Grand Teton and Yellowstone, making it one of the highest-grossing short-term rental markets in the country, but also one of the most tightly regulated. The Town of Jackson splits the rules in two: properties inside the Lodging Overlay/Planned Resort Zone can operate as full-time STRs with a one-time Basic Use Permit, while homes in residential zones are capped at just 60 rental nights and three separate stays per calendar year. Both paths require a Basic Use Permit from Planning and a business license from the Finance Department, renewed annually outside the overlay. With nightly rates among the nation's highest and housing scarcity driving aggressive enforcement, investors who buy inside the overlay or in pre-approved resort areas hold a durable advantage. Those chasing residential listings should treat Jackson as a part-time, premium-rate play rather than a year-round rental engine.
Jackson STR Quick Facts
| STR Legal? | Yes |
| License Required | Yes |
| License Cost | Business license plus Basic Use Permit fees per the Town fee schedule (typically a few hundred dollars combined); exact amount not published online |
| Lodging Tax | 12% combined |
| Occupancy / Density Caps | Outside the Lodging Overlay: max 60 rental nights and 3 separate stays per calendar year, per dwelling unit. No night cap inside the Lodging Overlay/Planned Resort Zone. |
| Primary Residence Required | No |
Two permits required to operate
Every STR in the Town of Jackson needs both a Basic Use Permit (BUP) from the Planning Department and a business license from the Finance Department. They can be applied for concurrently; BUPs may take up to 45 days and licenses up to 30 days after an application is deemed complete.
60-night cap outside the Lodging Overlay
In residential zones, a dwelling unit may be rented short-term for a maximum of 60 total nights across no more than three separate stays per calendar year. This makes residential STRs a part-time, peak-season strategy rather than a year-round operation.
Lodging Overlay is the unrestricted path
STRs inside the Lodging Overlay/Planned Resort Zone require only an initial standard BUP with no annual renewal and no neighbor noticing, and they are not subject to the 60-night cap. Buying inside the overlay is the cleanest route to full-time STR income.
Restricted residential zoning
Outside the overlay, STRs are permitted only in specific zones: NL-1 through NL-5, NM-1, NM-2, NH-1, R, MHP, and OR. Properties in other residential districts cannot be legally operated as short-term rentals.
Neighbor and HOA notification
Residential-zone operators must provide annual notification to neighbors within 200 feet of the property. If the property is in an HOA, written HOA approval is required before the Town will issue the BUP.
Enforcement and penalties
Teton County and the Town actively enforce STR rules. Wyoming statutes authorize fines of up to $750 per offense, with each day of a continuing violation treated as a separate offense, plus abatement actions.
Jackson STR Market Performance
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Frequently Asked Questions
Yes, but with strict limits. STRs are legal inside the Town of Jackson if you hold a Basic Use Permit and a business license. Inside the Lodging Overlay/Planned Resort Zone there is no night cap. In residential zones, rentals are capped at 60 nights and three separate stays per calendar year and are allowed only in specific zoning districts.
Yes. The Town of Jackson requires two approvals: a Basic Use Permit (BUP) from the Planning Department and a business license from the Finance Department. Both must be obtained before operating. Outside the Lodging Overlay, the BUP and license must be renewed annually, while inside the overlay the BUP is a one-time approval.
STR guests pay roughly 12% in combined taxes: Wyoming's 5% statewide lodging tax plus 7% sales tax, which is 4% state sales tax and 3% Teton County sales tax. Operators must register with the Wyoming Department of Revenue to collect and remit these taxes on every booking under 31 days.
In residential zones outside the Lodging Overlay, a dwelling unit can be rented short-term for a maximum of 60 total nights per calendar year, spread across no more than three separate stays. This rule does not apply inside the Lodging Overlay/Planned Resort Zone, where there is no annual night cap on rentals.
The most flexible locations are inside the Lodging Overlay/Planned Resort Zone, where full-time STRs are allowed with a one-time permit. Outside that overlay, STRs are permitted only in zones NL-1 to NL-5, NM-1, NM-2, NH-1, R, MHP, and OR, and are subject to the 60-night cap, annual renewal, and neighbor notification.
Informational only — verify current rules with local authorities before investing. Sources: www.jacksonwy.gov · www.tetoncountywy.gov · www.tetoncountywy.gov · www.avalara.com · www.airroi.com
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