Taos, New Mexico Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Taos, NM?

YES — Short-term rentals (STRs) are permitted in both the Town of Taos and unincorporated areas of Taos County, but they are subject to strict regulations and permit requirements. The Town of Taos currently caps permits at 120, while Taos County has implemented a cap of 400 permits under their newly adopted Ordinance 2024-4, which took effect October 19, 2024.

What do Airbnb hosts actually earn in Taos?

Taos hosts earn a median $31,079/year with $266 ADR and 47% occupancy.

Top performers pull in $48,713+ per year.

See the full Taos market breakdown

How to Start a Short-Term Rental Business in This Market

For Town of Taos (City-Level)

Verify Zoning Eligibility: Confirm your property is in an approved zoning district
Complete Required Inspections: Ensure all safety requirements are met
Apply Online: Use the HostCompliance portal for permit applications
Pay Required Fees: Complete all associated permit and registration costs
Register for Taxes: Set up lodger's tax and gross receipts tax accounts
Maintain Compliance: Renew annually and adhere to ongoing requirements

For Taos County (Unincorporated Areas)

Review Eligibility Requirements: Determine if applying as owner-occupied or non-owner-occupied
Complete Appropriate Checklist: Follow the specific submission requirements for your property type
Gather All Required Documents: Prepare comprehensive application packet
Submit Application: Email to str.application@taoscountynm.gov or deliver in person
Await Review Process: Applications accepted starting October 21, 2024

Required Documents, Permits, Licenses, and Guidelines

Town of Taos Requirements

Permits and Licensing:

Short-Term Rental Permit (renewed annually)
Business Registration
Online application through HostCompliance portal

Safety Requirements:

Operable smoke detectors
Carbon monoxide detectors
Fire extinguisher
Rental packet with host contact information and local responsible party details
Safety information and Town rules/restrictions documentation

Tax Registration:

Lodger's Tax registration (5% on reservations under 30 nights)
Gross Receipts Tax registration and compliance

Taos County Requirements

Core Applications:

Short-Term Rental Permit Application
Zoning Clearance Application
Rural Addressing Application (if needed)
Fire Department Requirements for Residential Occupancy compliance

Business Licensing:

New Business Registration Application
Lodging Establishment Application

Affidavits and Compliance Documents:

STR Owner Permission Statement
Affidavit of Compliance for Owner-Occupied properties
Affidavit of Compliance for Non-Owner Occupied properties

Specific Checklists (Updated Regularly):

Owner-Occupied Submittal Checklist
Non-Owner Occupied Submittal Checklist (Updated 05/05/25)

Specific Regulations

Town of Taos Zoning Restrictions

Prohibited Areas:

Historic District(s)
Historic and Hotel Overlay Zones
Central Business District (CBD)

Permitted Zoning Districts:

RA-20, RA-10, RA-6, RA
R-1, R-2, R-3, R-4, R-6, R-14
C-1 and C-2
Note: Some districts require conditional use permits

Operational Requirements:

All STR permits expire September 30th annually
Renewal deadline: November 30th
Applications processed first-come, first-served
Complete inspections required before application acceptance

Taos County Regulations (Ordinance 2024-4)

Permit Caps and Eligibility:

400 total permit cap for unincorporated areas
Effective date: October 19, 2024
Application acceptance: Beginning October 21, 2024
Separate provisions for owner-occupied vs. non-owner-occupied units

Existing STR Status:

Currently 700-800 STRs operating during peak tourist periods
650-700 estimated to be eligible under new regulations
Gradual reduction toward 400 permit cap as existing permits expire

Compliance and Monitoring:

Regular inspections and compliance verification required
Complaint reporting system in place
Violation enforcement through planning department

Tax Obligations

Town of Taos:

5.0% Lodger's Tax on reservations under 30 nights
Gross Receipts Tax on business operations
Individual host responsibility for tax collection and remittance

State-Level Considerations:

New Mexico gross receipts tax applies to business operations
Separate state tax obligations may apply depending on business structure

Contact Information

Town of Taos

Primary Contact:

Dinah Gonzales, Senior Planner
Email: dgonzales@taosgov.com
Phone: (575) 751-2034

General Information:

Town of Taos: (575) 751-2000
Address: 400 Camino De La Placita, Taos, NM 87571

Tax Questions:

Customer Service: (575) 751-2019

Taos County

Application and General Inquiries:

Phone: (575) 737-6440
Email: str.application@taoscountynm.gov

Violation Reporting:

Phone: (575) 741-2713
Online Portal: Complaint Submission Link

County Offices:

Taos County Planning Department
Address: 105 Albright Street, Suite H, Taos, NM 87571
Main Phone: (575) 737-6300

Source Links

Official Government Sources

Application Forms and Checklists

News and Context Sources

Additional Reference Documents

Important Note for Investors: The regulatory environment for STRs in Taos is actively evolving. The county's new ordinance represents a significant change from previous standards, and both jurisdictions regularly update their requirements. Investors should verify current regulations and requirements before making property acquisition or business operation decisions. The capped permit systems in both jurisdictions create artificial scarcity, making early application and compliance particularly critical for new operators.

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Ask the AI Advisor about Taos

Taos is a small, high-desert town in northern New Mexico, situated in Taos County near the foot of the Sangre de Cristo Mountains. With a town population of roughly 6,000, it has long drawn attention as an artistic and cultural enclave, anchored by a centuries-old adobe plaza, a thriving community of galleries and studios, and a distinctive blend of Native American, Spanish, and Anglo heritage. The town is best known as the home of Taos Pueblo, a UNESCO World Heritage Site, and as a year-round base for exploring the mountains, rivers, and high plains of north-central New Mexico. It lies approximately 130 miles north-northeast of Santa Fe and roughly 150 miles north of Albuquerque, just off the High Road to Taos Scenic Byway.

Just outside the town limits, Taos Pueblo remains the most iconic attraction in the area. A multi-stitched adobe settlement continuously inhabited for more than a thousand years, it is one of the oldest continuously inhabited communities in the United States. Visitors can tour portions of the village on guided walks, and its recognition as a UNESCO World Heritage Site reflects both its cultural and architectural significance. It is only a few minutes' drive from the Taos Plaza.

A short drive to the northeast brings travelers to Taos Ski Valley, a mountain resort village tucked into the Sangre de Cristo range. In winter it offers some of the most challenging and well-regarded skiing in the Southwest, and in summer the same terrain draws hikers, mountain bikers, and wildflower watchers. The drive from the town of Taos to the base area is roughly 20 miles and takes about 30 minutes.

West of town, the Rio Grande Gorge Bridge carries US Route 64 across a 650-foot-deep gorge cut by the Rio Grande. It is one of the highest bridges in the United States and a popular stop for travelers, with short walking paths that offer sweeping views of the river far below. From Taos Plaza, the bridge is about 15 miles and roughly 25 minutes by car, making it an easy half-day excursion.

Back in the heart of town, the historic Taos Plaza and its surrounding blocks form a walkable core of adobe-fronted shops, restaurants, and art spaces. The plaza itself dates to the Spanish colonial era, and nearby museums such as the Harwood Museum of Art and the Millicent Rogers Museum anchor the town's identity as a longstanding creative hub.

For short-term-rental owners, Taos offers a compelling combination: a small-town setting with strong year-round demand from skiers, art tourists, heritage travelers, and outdoor enthusiasts. Its proximity to a UNESCO site, a major ski resort, and a national scenic corridor, paired with its distance from the larger New Mexico cities, makes it a natural four-season base for visitors exploring the northern part of the state.

Taos, New Mexico

Challenging To Investors

STR Regulations for Taos, New Mexico