🏡 Nantucket Short-Term Rental Requirements
Nantucket’s short-term rental (STR) market remains an important part of the island’s seasonal economy and overall real estate landscape. Understanding Nantucket short-term rental requirements is essential for property owners to remain compliant with Massachusetts short-term rental laws and Town of Nantucket regulations.
If you plan to rent your property for 31 consecutive days or less, you must complete two required registrations for a Nantucket short-term rental: first with the Massachusetts Department of Revenue, and then with the Town of Nantucket.
1. đź“ť Register with the State
The first step is registering your property with the Massachusetts Department of Revenue (DOR) through MassTaxConnect. Once registered, owners will receive a Certificate of Registration. Registration is a one-time requirement with no associated fee.
This certificate authorizes the collection of Nantucket short-term rental taxes from tenants, which are then remitted monthly to the Massachusetts Department of Revenue on the owner’s behalf. A copy of the Certificate of Registration must be provided to our office and all intermediaries and must also be displayed within the rental property.
Current Short-Term Rental Tax Rates
11.7% Total Tax
- 5.7% Massachusetts State Tax
- 6% Town of Nantucket Local Tax
14.7% Total Tax
- 5.7% Massachusetts State Tax
- 6% Town of Nantucket Local Tax
- 3% Community Impact Fee
*The 14.7% tax rate applies to professionally managed properties. If you own and register two or more short-term rental units under the same individual or entity name and the properties are not located within your primary residence they may be classified as professionally managed properties and subject to the additional 3% Community Impact Fee.
2. đź“„ Obtain a Town of Nantucket STR Certificate
After receiving your Massachusetts Department of Revenue Certificate of Registration, you must then apply for a Town of Nantucket Short-Term Rental (STR) Certificate through the GovOS portal via the Town of Nantucket STR Permit Registration Process
Annual STR Certificate Renewal
All Nantucket STR Certificates expire annually on October 31 and must be renewed prior to the upcoming rental season to remain in compliance with the Town of Nantucket regulations.
Separate STR Certificates for Each Rental Unit
If you own more than one short-term rental property, including a guest house, cottage, or other accessory dwelling that is rented separately from the main house, each property is required to have its own certificate and is subject to an annual fee of $250.
Important Note Regarding Rentals of 14 Days or Less
Properties rented for 14 days or fewer per calendar year are exempt from Massachusetts short-term rental taxes. However, property owners are still required to:
- Register with the Massachusetts Department of Revenue through MassTaxConnect
- Claim the annual exemption through MassTaxConnect by January 15
- Maintain the required liability insurance coverage
Rentals Exceeding 31 Consecutive Days
Short-term rental taxes do not apply to leases exceeding 31 consecutive days. However, the Massachusetts Department of Revenue recommends that all property owners register their property through MassTaxConnect to ensure compliance should the property ever be rented for 31 days or less.