Short-Term Rental Rules in Marin County: Licenses, Caps and Town Bans

In unincorporated Marin County, renting a home for 30 days or less needs a county short-term rental license under County Code Chapter 5.41, plus a county business license and a transient occupancy tax (TOT) certificate. Licenses are capped at 1,200 countywide, not counting Dillon Beach, with separate caps in 18 townships such as Stinson Beach (192) and Inverness (86), and a license ends automatically when the property changes hands. Inside the cities and towns the county license doesn’t apply: Sausalito bans short-term rentals in its residential zones, several other towns prohibit them, and San Rafael, Novato and Mill Valley run their own registration programs.

For a second-home buyer in West Marin or southern Marin, that means rental income is something to confirm before you write an offer, not something the seller can hand over. This post sets out the county program as of October 2026, using the county’s October 2026 administrative procedures, the township caps and waitlist, what a sale does to a license, the hotel tax, the coastal zone angle, and the town-by-town picture. It is general information, not legal or tax advice; a Marin land use attorney or your tax adviser can tell you how the rules apply to a specific parcel and rental plan.

Who sets the rules: county or city

The first question is jurisdiction. A Mill Valley or San Rafael mailing address doesn’t tell you whether a house is inside city limits, and Tamalpais Valley, Santa Venetia and most of West Marin are unincorporated, so the county program applies there.

The town rows that rest on the 2023 survey are the most likely to have changed, so check the current municipal code or call the planning department before you rely on them.

The county license in unincorporated Marin

The county’s program page defines a short-term rental as a rental of residential property for 30 days or less. Before you advertise or take a booking, you need three things, in this order:

1. A short-term rental license from the Community Development Agency, issued under Chapter 5.41.
2. A business license from the Department of Finance.
3. A TOT certificate, also from Finance, so you can collect and remit the hotel tax.

Hotels, motels, bed and breakfast inns, agricultural homestays and campgrounds don’t need the license. Neither does a rental on agricultural land of at least 10 acres whose primary use is commercial agriculture.

Fees and terms as of October 2026

Licenses run for two years. The procedures say a renewal must be filed at least 60 days before the license expires, and renewal can be denied after more than three verified substantial violations in the prior term. The ordinance text the county sent to the Coastal Commission defines a primary residence as the home a person lives in for at least six months a year.

Limits that catch buyers

• One license per owner. Owners who ran more than one rental on January 1, 2024 could license each for an initial two-year term, but may renew only one.
• No new condos or multifamily units. The county isn’t taking applications for units in a multifamily building or condominium that weren’t legally operating on January 1, 2024, and those initial licenses can’t be renewed.
• Newer ADUs are out. Accessory dwelling units created or legalized after January 1, 2020 under the statewide exemption are excluded, and the ordinance text also excludes other ADUs created after February 24, 2021.
• Parking. Rentals that weren’t legally operating on January 1, 2024 must meet the county parking standards, verified by Public Works.
• Advertising. Every listing must show the license, parking, business license and TOT numbers.

Caps and waitlists by township

Table 1 of the October 2026 procedures sets these township caps. Across the unincorporated county the total is limited to 1,200 licenses, excluding Dillon Beach, which has its own cap.

The first-round application deadline has passed. New applicants now register for the township or countywide waitlist, and the county issues licenses in the order applications were received. When one opens, the next owner on the list has up to 30 days to apply, or the offer passes down the list. You can apply for a license only after the county invites you.

A cap is a ceiling, not a count of open licenses. Ask the county how many licenses are active and how long the waitlist is in the township you’re considering; the program page links a license status tool and a TOT portal that lists active rentals.

What happens to a license when the house sells

This is the rule that most often surprises buyers. Section 5.41.050(C), as submitted to the Coastal Commission, says the license term “expires immediately and automatically upon any change of ownership.” A change of ownership follows the property tax definition in the Revenue and Taxation Code. The only exception lets a natural person transfer an actively licensed property to a spouse or children, once per property.

So a buyer of a licensed Stinson Beach or Inverness house doesn’t step into the seller’s license. In a capped township, the buyer joins the waitlist like anyone else. In practice:

• Price the home on its value as a second home or long-term rental, and treat nightly income as upside you may or may not get.
• Ask the seller for the license and TOT history anyway: it shows how the house was used and whether the TOT account is clean.
• Remember that existing guest bookings past closing are a contract issue between buyer and seller, and a buyer without a license can’t host them.

Sellers have their own step. County Finance wants written notice to the Tax Collector 30 days ahead of a sale, sent with a completed closeout form, and the seller receives a tax clearance certificate only after every return is filed and paid. Build that into the listing timeline.

The hotel tax: 10%, or 14% in West Marin

Guests in unincorporated Marin pay transient occupancy tax on the rent. In the West Marin zone the county calls TOT2, voters approved Measure W on November 6, 2018, adding 4% to the prior 10% rate, so stays there have carried 14% since January 1, 2019. The county says that extra revenue is used only in the West County region, and it publishes a Measure W parcel listing to show which parcels are in the zone.

Don’t confuse it with the City of San Rafael’s Measure W on the November 3, 2026 ballot, which concerns that city’s transfer tax and has nothing to do with rentals. The operator collects the tax, files returns and keeps records; the TOT certificate is what lets you do that.

Coastal villages and the Local Coastal Program

Much of West Marin is in the state Coastal Zone, so the county had to send its short-term rental rules for the coastal villages to the California Coastal Commission as a Local Coastal Program amendment (LCP-2-MAR-24-0002-1). The April 2024 staff report covered ten communities: Bolinas, Dillon Beach, Inverness, Marshall, Muir Beach, Olema, Point Reyes Station, Seadrift, Stinson Beach and Tomales, and staff recommended approving the amendment as submitted.

The county’s consistency analysis treats a short-term rental as a residential use of property, not a commercial one. Neither document we read says a rental by itself needs a coastal development permit, though converting a home to a bed and breakfast does call for one. Building work is another matter: a new guest cottage, deck or septic upgrade in the Coastal Zone can need a coastal permit, which our guide to buying coastal property in Sonoma and Marin explains.

One caution if you read the 2024 filing: its cap table differs from the one the county uses now. It listed Seadrift separately from the rest of Stinson Beach, with initial numbers of 72 for Seadrift and 120 for Stinson Beach, and different “ultimate” numbers for later rounds, such as 94 for Stinson Beach outside Seadrift. The October 2026 procedures have no Seadrift row and list 192 for the Stinson Beach township, the two initial numbers combined.

The county administers licenses under its current procedures, so Table 1 in those procedures is the figure to use, not the 2024 table. Confirm the township cap and the waitlist with the county before you plan around either.

Village notes

• Stinson Beach: the largest cap after Dillon Beach, but septic capacity and parking often limit how many guests a house can take.
• Inverness and Point Reyes Station: 86 and 26 licenses; wells, septic and the Vision Fire rebuild history matter as much as the license.
• Bolinas: 54 licenses, in a town where a water meter moratorium has shaped development since 1971.
• Dillon Beach: the only township outside the 1,200 total, with 204 licenses.

Town-by-town rules in southern and central Marin

Sausalito

Sausalito’s own page says short-term rentals are not allowed because transient occupancy isn’t listed as a permitted use under Municipal Code section 10.22.030. Renting for 30 days or more is allowed. In January 2019 the City Council voted unanimously to keep the ban, and the fines run $1,000 for a first offense, $2,000 for a second and $5,000 after that. Our Sausalito guide covers the city’s other resale requirements.

Tiburon, Belvedere, Corte Madera and Larkspur

The Town of Ross’s May 11, 2023 staff report surveyed every Marin jurisdiction and listed these four as prohibiting short-term rentals, with active enforcement noted in Tiburon and fines of $1,500 to $5,000 in Larkspur. Larkspur does levy a 10% hotel tax on lodging. See our Tiburon page for that town’s 2015 zoning change.

Mill Valley

Mill Valley allows short-term rentals with city registration, according to the 2023 survey, and its Uniform Transient Occupancy Tax chapter sets the tax at 10% of rent for stays of 30 consecutive days or less. Operators must register with the city’s tax collector. Homes in unincorporated Tam Valley follow the county program instead; our Mill Valley guide shows where the line runs.

San Rafael

San Rafael’s program requires annual registration through its Rentalscape portal, at $170 for a first registration and $135 for renewal. The unit must be the primary residence of a natural person who has lived there at least 60 consecutive days. The city also requires a 24-hour local contact, a self-certified safety inspection and, in the wildland-urban interface, a yearly vegetation self-certification.

Occupancy is two people per bedroom plus two for added living space, with one off-street space per four guests. An ADU or JADU can be rented if the residency rules are met, but not at the same time as the main house. The tax is 12%, of which 10% goes to the city and 2% to the Marin County tourism assessment district. Three upheld citations in two years cost the registration. More on the city is in our San Rafael guide.

Novato

Novato lets registered owners rent their homes short-term, with the STR registration and a Novato business license applied for together online. Hosts remit TOT quarterly through the city portal; the city’s tax page says Measure Q raised the rate from 10% to 12% in 2020, and lodging operators also file tourism district returns. Our Novato guide covers the city’s tenant rules for long-term rentals.

Checks before you make an offer

1. Confirm the jurisdiction from the parcel record, not the mailing address.
2. Find the township and its cap in the county’s current procedures, then ask how long the waitlist is.
3. Assume the license won’t transfer. Unless you are the seller’s spouse or child, it ends at closing.
4. Check the unit type. Condos, multifamily units and newer ADUs are excluded from new county licenses.
5. Look at parking, septic and water, which limit guest counts in the villages.
6. Run the numbers both ways: with and without nightly income, using our rental property analysis guide and our post on second home versus investment property for the tax and loan differences.
7. Get it in writing. Make any rental assumption a stated contingency, and confirm it with the county or city before you remove it.

Diamond may refer you to partners we work with, such as local property managers; you’re free to choose any provider.

Questions people ask

Can I buy a Marin home with a short-term rental license and keep renting it?

Not on the seller’s license. Under County Code section 5.41.050(C) the license expires automatically on a change of ownership, with one allowed transfer to a spouse or children. A buyer applies separately and, in a township at its cap, joins the waitlist.

How many short-term rental licenses does Marin County allow?

The October 2026 procedures cap unincorporated Marin at 1,200 licenses, excluding Dillon Beach, which has its own cap of 204. Townships have their own caps, such as 192 in Stinson Beach, 86 in Inverness, 54 in Bolinas, 27 in Marshall, 19 in Muir Beach and 11 in Tomales.

What is the hotel tax on a West Marin vacation rental?

14% of the rent in the West Marin TOT2 zone, since Measure W (November 2018) added 4% from January 1, 2019. The rest of unincorporated Marin is at 10%. The host collects and remits the tax under a county TOT certificate.

Are Airbnb-style rentals allowed in Sausalito?

No. The city says transient occupancy isn’t a permitted use under Municipal Code section 10.22.030, so rentals under 30 days aren’t allowed in its residential zones. Fines start at $1,000. Rentals of 30 days or more are fine.

Can I rent my ADU short-term in unincorporated Marin?

Usually not if it’s new. The county excludes ADUs created or legalized after January 1, 2020 under the statewide exemption, and the ordinance text also excludes other ADUs created after February 24, 2021. Older permitted units may qualify; ask the county.

Does a short-term rental in West Marin need a coastal development permit?

The county’s coastal amendment treats a short-term rental as a residential use, and the documents we read don’t require a coastal permit for renting alone. Building work, a bed and breakfast conversion or a change to the structure can need one.

Can I run a short-term rental in San Rafael if I don’t live there?

No. San Rafael requires the unit to be the primary residence of the natural person who registers it, who must have lived there at least 60 consecutive days. Registration is yearly and the tax is 12%.

If rental income is part of how you plan to carry a Marin home, tell us early, and we’ll pull the township cap, the license status and the town’s current rule before you write an offer. Start with our Marin County real estate guide, our post on vacation rental rules in Sonoma County for comparison, or contact Diamond to talk through a specific property.

Sources & notes

• County of Marin: Short-term rental (STR) licensing program (updated October 8, 2026)
• County of Marin: STR License Administrative Procedures (October 2026)
• California Coastal Commission: Marin County LCP amendment LCP-2-MAR-24-0002-1, staff report (April 2024)
• California Coastal Commission: LCP-2-MAR-24-0002-1 exhibits, including Chapter 5.41 text (April 2024)
• County of Marin Finance: West Marin occupancy tax increase (Measure W, 2018)
• County of Marin Finance: TOT, sell, transfer or terminate operations
• City of Sausalito: Short-term rentals
• Town of Ross: Staff report on short-term rentals, with survey of Marin jurisdictions (May 11, 2023)
• City of Mill Valley Municipal Code chapter 5.28, Uniform Transient Occupancy Tax (eCode360)
• City of San Rafael: Short-term rentals
• City of Novato: Short-term rental program
• City of Novato: Transient occupancy tax

The town rows drawn from the Town of Ross survey are as of May 2023; check each town’s current code before relying on them. Chapter 5.41 quotes are from the ordinance text the county submitted to the Coastal Commission in 2024.

Last reviewed October 2026 by Matthew Martinez.