AIRBNB & SHORT-TERM RENTAL RULES

Napa

,
California

Can you run an Airbnb or do rental arbitrage here? What the city requires: permits, taxes, safety rules and enforcement.

Updated
Oct 6, 2026
||
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ARBITRAGE VERDICT

Red light: whole-house permits are capped at 41 and all are taken

Napa caps whole-house vacation rental permits at 41, and the city says all 41 are taken and the wait list is full.[1] The other type, a hosted permit capped at 60, is only for owners who live in the home and sleep there while it is rented.[1, 2] Renting without a permit costs $500 for a first violation.[2]

Our verdict, based on the sources at the end of this guide.

AT A GLANCE
Non-owner-occupied
Not allowed
Only 41 whole-house permits exist, and all are taken[1]
Who holds the permit
The owner
Permit is personal to the owner; a whole-house unit also names an authorized agent[2]
City permit
$976
Hosted application fee; annual program and processing fees also apply[3]
Permit cap
41 whole-house
Plus 60 hosted permits for owners who live on site[1, 2]
Lodging taxes
15%
12% city tax, 1% housing tax, 2% tourism district assessment[4, 5]
Stays of 30+ days
No permit
The city defines vacation rentals as stays of fewer than 31 days[1]

Napa allows only two kinds of vacation rental: whole-house permits, capped at 41, and hosted permits, capped at 60.[1, 2] The city says all 41 whole-house permits are taken and the wait list is full, and it accepts new applications only in advertised windows.[1] A hosted permit requires the owner to live and sleep in the home and rent no more than two bedrooms.[2] Renting without a permit costs $500 for a first violation and up to $1,000 for each day of later violations.[2]

01

Key requirements

Permit required

Transient occupancy is not allowed in residential or nonresidential zones unless the city approved a hotel, a bed and breakfast inn or a vacation rental permit.[2] Advertising a rental without a permit is also barred.[2]

Whole-house permits

The cap is 41 whole-house permits.[2] The city says all 41 are taken and the wait list is full, and new permit or wait list applications are accepted only during advertised periods.[1]

Hosted permits

The cap is 60 hosted permits, and the owner must live and sleep at the home while it is rented and may rent no more than two bedrooms.[2] Hosted applications are open October 1 to October 15, 2026, reviewed by lottery, with an administrative permit fee of $976.[1, 3]

Who holds the permit

The permit is personal to the owner, who is the person holding fee title.[2] A whole-house unit also names an authorized agent who acts as operator, manager and contact person and may be the owner or someone else.[2] Managing a rental for an owner for pay may need a California real estate license, since the state defines a broker as someone who leases, rents or collects rents from real property for another for compensation.[6]

Transfers

A hosted permit can't be transferred.[2] A whole-house permit can pass only to a buyer of the property, after the Director approves the transfer.[2]

02

Operational and safety standards

Occupancy and parking

Overnight guests can't exceed two per bedroom plus two more, and no more than 10 people may sleep in the unit.[2] Overnight vehicles are limited to the number of guests designated in the permit, using on-site parking where possible.[2]

Quiet hours and events

Quiet hours run from 9 pm to 7 am Sunday to Thursday, and from 10 pm to 7 am Friday and Saturday.[2] Weddings, auctions and commercial functions are banned.[2]

Contact and response

The owner or the authorized agent must be reachable by phone 24 hours a day while the unit is rented.[2] They must be on the premises within one hour of being notified of a compliance, health or safety issue.[2]

Safety and inspection

The city can inspect every year.[2] Required items include a visible address, smoke detectors, no double-keyed deadbolts on exit doors, a portable fire extinguisher, unobstructed exits and a packet of emergency numbers for renters.[2] An accessory dwelling unit can't be used for transient occupancy.[2]

Advertising and house rules

Every ad must show the "City of Napa Certified Vacation Rental" permit number.[2] Renters must sign the house rules, and the rules, rental agreement and permit must be posted inside the unit.[2]

03

Tax obligations

City tax

The city imposes a 12% general transient occupancy tax and a 1% special tax for affordable and workforce housing, for a total of 13% of the rent charged.[4] The special tax has been in effect since January 1, 2019.[4]

Tourism district assessment

The Napa Valley Tourism Improvement District adds 2% of gross short-term rental revenue, and its definition of a lodging business includes vacation rentals.[5] The current 10-year plan starts June 16, 2025 or soon after.[5]

Filing

The city says remittance is due on the 10th day of the month after the taxable transactions, and you must file every month even if you had no rentals.[7] The city's FAQ still states a 12% rate, which does not include the 1% special tax in the code.[4, 7]

State platform law

California's SB 346, approved October 13, 2025, lets a city require platforms to report each rental's address and to show the local license number and tax certificate in listings.[8] The law states it does not stop a city from adopting different rules.[8]

04

Enforcement

Fines

Running a transient occupancy use without a permit costs $500 for a first violation, $750 for a second violation of the same code section within 12 months, and $1,000 for each day of each additional violation within 12 months.[2] These come on top of the general code fines and enforcement costs.[2]

Compliance orders

The Director can issue a compliance order, and if you don't cure the violation in time, the city can issue a stop order or send the permit to the Planning Commission for revocation or changes.[2]

Revocation

The Director can start proceedings if a rental is detrimental to public health, safety or welfare, if you gave materially false information, or if you broke the rules or the permit.[2]

Annual review

Each year you must pay the inspection fee and document business license and tax compliance, the dates rented and any violations.[2] If you can't document at least 10 rented days in the term, the Director may find the permit inactive and ineligible for an extended term.[2]

Appeals

Permit decisions can be appealed under Chapter 17.70, and enforcement actions through an administrative hearing request.[2] An appeal not filed on time is waived.[2]

Bottom line for arbitrage

Not STR Friendly
|Our take

Plan on another market. Whole-house permits are full and hosted permits need the owner living there.

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        Sources

        The bracketed numbers in this guide point here. All sources checked
        Oct 6, 2026
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        Not STR Friendly
        Vacation Rental Permits (Updated September 2026) | City of Napa | https://www.cityofnapa.org/325/Vacation-Rental-Permits Napa Municipal Code, Section 17.52.515 Vacation rental permits | City of Napa (eCode360) | https://ecode360.com/43398528 Hosted Accommodation Vacation Rental Permit application (revised 8/31/2026) | City of Napa | https://www.cityofnapa.org/DocumentCenter/View/15998/Hosted-VR-Permit-Application Napa Municipal Code, Chapter 3.22 Transient Occupancy Special Tax for Affordable and Workforce Housing | City of Napa (eCode360) | https://ecode360.com/43389386 Napa Valley Tourism Improvement District 2025 Management District Plan | City of Napa | https://www.cityofnapa.org/DocumentCenter/View/14532/NVTID-2025-Management-District-Plan California Business and Professions Code, Section 10131 | California Legislature | https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=10131 Transient Occupancy Tax FAQ (What is Transient Occupancy Tax?) | City of Napa | https://www.cityofnapa.org/Faq.aspx?QID=81 SB 346, Local agencies: transient occupancy taxes: short-term rental facilitator (Chapter 751, Statutes of 2025) | California Legislature | https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB346
        The code lets a whole-house permit name an authorized agent other than the owner[2] The city publishes the list of active whole-house permits[1] A whole-house permit can pass to a buyer of the property[2] Stays of 31 days or more fall outside the vacation rental rules[1]
        All 41 whole-house permits are taken and the wait list is full[1] Permits are personal to the owner and can't be sold apart from the property[2] Fines start at $500 and reach $1,000 for each day of later violations[2] Lodging taxes add up to 15% on top of your rent[4, 5]
        Check the city's list of active whole-house permits before you talk to a landlord.[1] Ask the city in writing whether the owner can change the authorized agent on an issued permit, since the code does not say.[2] Confirm the permit is in good standing, since the city can treat a permit with fewer than 10 rented days a year as inactive.[2] Budget 15% in lodging taxes.[4, 5]
        Oct 6, 2026
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