October 16, 2025
Thinking about turning your Vero Beach home into a short-term rental? The upside can be real, but the rules are not the same across the city and county, and taxes stack up fast if you miss a step. If you want steady bookings and zero headaches, you need a clear plan for licensing, zoning, and tax compliance. This guide breaks down Vero Beach’s city-versus-county rules, the taxes you must collect, and the practical steps to launch legally. Let’s dive in.
If your home sits inside the City of Vero Beach limits, start with zoning. The city has long-standing rules that restrict “transient” or guest-house uses in many residential zones, and the city has enforced those rules in court. Local reporting confirms the city’s position and enforcement history, so verify your parcel and permitted uses before you advertise a stay under 30 days. See the city’s enforcement background in this coverage of a key case: City wins short-term rental case.
If your property is in unincorporated Indian River County, the county allows vacation rentals subject to registration and operating conditions. County rules tend to focus on parking, occupancy, noise, events, and having a 24/7 local contact. Local reporting summarizes these requirements for county-run STRs: short-term rental attention notice.
Florida law sets boundaries on how cities and counties can regulate vacation rentals and preserves older local rules that were already on the books. For background on this framework, review Florida Statute § 509.032.
Many short-term rentals meet the state definition of a “vacation rental” and need a license from the Department of Business and Professional Regulation (DBPR) before advertising. DBPR sets classifications, applications, fees, and certain safety standards. Learn the basics and when a license applies here: DBPR vacation rental overview.
Rentals of six months or less are generally subject to a 6 percent state sales tax on the total rental charge. The taxable base often includes cleaning fees and other required charges. See the state rule at Florida Statute § 212.03.
Some counties add a discretionary sales surtax on the same base. Check the current surtax tables and instructions through the Florida Department of Revenue’s local option resources: local option taxes overview.
Indian River County levies a Tourist Development Tax, often called the bed tax. Local voters approved an increase from 4 percent to 5 percent in November 2024. Confirm the current effective rate with the county or DOR before you list. For local context, see this update: short-term rental attention notice.
Putting it together, most short-term rental bookings in Indian River County will include: 6 percent state tax + any county discretionary surtax + 5 percent TDT.
Expect registration, proof of tax accounts, and operating standards. Typical requirements include a 24/7 local contact, posted rules inside the unit, occupancy and parking limits, no large events, and protections for coastal resources. Local reporting summarizes the county’s approach for STRs: short-term rental attention notice.
Verify your zoning and the city code’s permitted uses before you list. The city’s long-standing rules restrict transient use in many residential districts, and the city has enforced those rules. Read a summary of the city’s enforcement history here: City wins short-term rental case.
Local governments can impose fines for violations and may suspend registrations for repeat issues like noise, trash, and parking. Recent coverage highlights the trend toward stronger enforcement: stiffer penalties possible on vacation rentals.
Renting all or substantially all of a homesteaded property for more than 30 days per year for two consecutive years can jeopardize your homestead exemption. Check your plans with the county property appraiser before you list. See the FAQ here: Indian River County Property Appraiser FAQ.
Standard homeowners policies often exclude short-term rental activity. Many owners obtain STR-specific coverage and follow DBPR safety rules like smoke detectors and fire extinguishers. Review licensing and safety basics: DBPR vacation rental overview.
If you want your rental income without the surprises, align your plan with local rules from day one. Our team can help you assess zoning, estimate gross-to-net after taxes, and position your property for the right guest profile and seasonality. For a private consultation, connect with Vero Premier Properties.
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