State Regulation

Wisconsin, the heartland of America's Midwest, offers a delightful blend of natural beauty, vibrant cities, and rich cultural heritage. Whether you're exploring the scenic shores of Lake Michigan, savoring the culinary delights of Milwaukee, or adventuring through the lush forests and rolling hills, a short-term rental in Wisconsin provides the perfect home base. Experience the comfort and convenience of staying in unique, fully-equipped accommodations that cater to every traveler's needs, from cozy cabins and historic homes to modern apartments and lakeside retreats. Immerse yourself in local communities, enjoy personalized touches, and make unforgettable memories with Wisconsin's welcoming hospitality. Explore the diverse and enchanting world of short-term rentals in Wisconsin, where every stay feels like home.

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Is STR legal in the State?

Short-term rentals are legal in Wisconsin. The state has specific laws that regulate this practice. In 2017, Wisconsin enacted the "Right to Rent Law," which applies statewide. Under this law, no city, village, town, or county can prohibit short-term rentals of residences for periods of 7-29 consecutive days. However, municipalities can impose their own restrictions on rentals for less than seven days and can set a maximum number of rental days per year, provided it is at least 180 days.

Is there a statewide definition of STR?

In Wisconsin, short-term rentals are classified as "Tourist Rooming Houses" (TRH) by the Department of Agriculture, Trade and Consumer Protection (DATCP). A TRH is defined as "any lodging place, including tourist cabins and cottages, other than hotels or motels, where sleeping accommodations are provided for a fee to tourists or transient guests.”

Statewide Registration Requirement

In Wisconsin, the statewide registration requirement for short-term rentals mandates that most short-term rental properties obtain a "Tourist Rooming House" (TRH) license from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). This requirement applies to properties such as vacation homes, cabins, and cottages that are rented out to tourists for more than ten nights in a 12-month period. A Pre-Licensing Inspection is requited before the license can be issued by a sanitarian ensuring your facility meets regulations like building exits, fire safety, proper waste disposal, and water quality. You can reach out DATCP regarding the license by sending an e-mail to datcpdfslicensing@wisconsin.gov or

by calling 608/224-4923. Local governments in Wisconsin have the authority to require property owners to obtain local permits for operating short-term rentals. These permits should be administrative in nature and must not be overly restrictive to avoid acting as a de facto prohibition on short-term rentals.

Additionally, you must register with the DOR for a Sellers Permit to collect taxes (if the total sales revenue is $2,000 or more). They must then collect and remit state & county sales taxes, local room tax, and any applicable special district or premier resort area taxes. For inquiries regarding the permit, you can call (608) 266-2776, by fax at (608) 267-1030, or via email at DORBusinessTax@wisconsin.gov.

Statewide Tax Requirement

In Wisconsin, short-term rental properties are subject to both state and local taxes. At the state level, short-term rentals must collect and remit the Wisconsin state sales tax of 5%. Additionally, local municipalities have the authority to levy extra taxes, including local room taxes, which can vary by location.

For example, many localities impose their own room taxes on top of the state sales tax. These local taxes are typically collected by the state and then distributed back to the local governments. This centralized collection process simplifies compliance for property owners and ensures that taxes are properly administered.

Short-term rental hosts in Wisconsin need to be aware of these tax obligations to ensure they remain compliant with both state and local regulations.

Is there any other state-wide requirement?

Lodging marketplaces like Airbnb and VRBO have the following obligations with the state to operate legally:

Market place must register with the state's Department of Revenue (DOR) to obtain a license for collecting applicable taxes related to short-term rentals, including municipal room taxes. Remote sellers (out-of-state) are considered to have a nexus in Wisconsin if they sell taxable goods and services within the state, unless they meet the "small seller exception," which applies if annual sales into Wisconsin are below $100,000 or involve fewer than 200 transactions per year.
The marketplace is required to collect sales and use taxes from buyers and submit them to the DOR.
For properties located in municipalities that impose a room tax, the marketplace must collect the tax from buyers and remit it to the respective local authorities.
The marketplace is also responsible for informing short-term rental owners about these tax requirements.

Wisconsin

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