Short-Term Rental Licensing in Orange Beach & Gulf Shores: What Owners Need

Last checked: November 4, 2026. Rules and rates change; confirm with the offices linked below before you rent. This is general information, not legal or tax advice.

Every short-term rental owner on the Alabama Gulf Coast deals with three layers: a city (or county) business license, lodging taxes, and, in some Orange Beach neighborhoods, vacation rental rules. Here is what the official sources say for Orange Beach, Gulf Shores and Fort Morgan.

Orange Beach

Business license

• Anyone doing business in the City of Orange Beach needs a business license, issued by the Finance Department and renewed each January (City of Orange Beach - Business Licenses).
• Applications and renewals go through the city's OpenGov portal. Questions: Finance Department, 251-981-6096.
• The license is the owner's responsibility even if a management company handles the rental (City of Orange Beach FAQ).

Vacation rentals in residential neighborhoods

• The city defines a vacation rental as a one- or two-family residential dwelling rented for fourteen consecutive days or less, and regulates them in certain residential districts under Ordinance 2018-1283, with a map of where they are allowed (City of Orange Beach - Vacation Rental Regulations).
• If you own a house rather than a condo, check the vacation rental map before you buy or list, and call City Planning (251-981-6787) with questions.

Lodging tax

• 16% in total: City of Orange Beach 10%, State 4%, Baldwin County Lodging 2%. It applies to the rental rate, cleaning fee and parking passes if applicable (City of Orange Beach - Taxes).
• The city asks taxpayers to set up accounts on My Alabama Taxes.

Gulf Shores

Rental business license

• Owners who rent property in the city limits or police jurisdiction must apply for a business license, through the city's online portal or on paper (City of Gulf Shores - Rental License).
• Fees: based on gross receipts (Fee Schedule A) plus a $45 rental fee for short-term rentals.
• Licenses expire December 31; renewals are due January 1 and are delinquent after January 31.
• Additional requirements: a designated local emergency contact, a rental safety inspection every 3 years, and lodging tax collection and remittance.
• The city's rental property license checklist lists the documents to have ready.

Lodging tax

• 16% in the corporate limits (4% State, 2% Baldwin County, 10% City) and 11% in the police jurisdiction (City share 5%) (City of Gulf Shores - Lodging Tax).
• Due by the 20th for the prior month, filed through My Alabama Taxes. A return is required even if no tax was collected.
• If you use a management company, make sure it collects and remits on your behalf; if you leave its rental program, you become responsible for the taxes.

Fort Morgan (unincorporated Baldwin County)

• Lodging tax in the unincorporated Fort Morgan area is 6% (4% State + 2% Baldwin County lodging tax), per the tax table published by Gulf Shores & Orange Beach Tourism.
• Outside city limits, State/County business licenses are handled by the Baldwin County Probate Office - Business License, which asks you to call about the license for your specific activity. Renewals open October 1 and are delinquent from November 1.

Statewide rules that affect every owner

• Alabama's state lodgings tax is 4% in Baldwin County and applies to stays of less than 180 continuous days (Alabama Department of Revenue - Lodgings Tax).
• Since January 1, 2025, booking platforms that facilitate a stay ("accommodations intermediaries") must collect and remit state and parallel local lodgings tax on those bookings, unless a written agreement makes another party responsible (Ala. Admin. Code r. 810-6-5-.22.01).
• If a platform remits all state and local lodging taxes for its bookings, you do not need your own lodging accounts for those bookings; if you also take direct bookings, you do (ALDOR FAQ).
• The same rule adds an annual informational report, due April 20, for accommodations intermediaries and providers. Licensed professional property management companies that collect and remit the tax are exempt from that report.

How Coastal South helps owners

Official sources (checked November 4, 2026): Orange Beach - Business Licenses; Orange Beach - Revenue FAQ; Orange Beach - Vacation Rental Regulations; Orange Beach - Taxes; Gulf Shores - Rental License; Gulf Shores - Lodging Tax; Baldwin County Probate - Business License; ALDOR - Lodgings Tax; Ala. Admin. Code 810-6-5-.22.01; Gulf Shores & Orange Beach Tourism - Lodging Tax Information.