Understanding Cape Cod Vacation Home Registration Requirements in 2025

If you're a vacation rental owner in the Cape Cod, Martha's Vineyard or Nantucket regions, staying compliant with local regulations is essential. Many towns now mandate registration for short-term rentals; defined as stays of 31 days or less; to ensure safety, track housing impacts, and generate revenue for community needs (mass.gov). This guide explores whether your town requires a vacation rental registration fee, delving into Cape Cod and the Islands vacation home registration requirements in 2025. We'll cover fee structures, tax implications, registration processes, and more to help you navigate these rules effectively.

With the rise in short-term rentals coinciding with housing shortages for year-round residents and the local workforce, towns are implementing these measures to document properties, enforce occupancy limits (typically two people per bedroom plus two additional), and promote safety protocols. Fees and requirements can vary significantly by town, so always verify with local authorities.

📝 Note: WeNeedaVacation provides this information for educational purposes only; we are not involved in the registration process.

Overview of Short-Term Rental Fees on Cape Cod

Registration fees help fund inspections, administrative costs, and community initiatives. These are one-time or annual charges separate from taxes. For instance, some towns bundle inspection costs into the fee, while others require separate payments for water tests or renewals every few years. Below is a list of short-term rental fees across key Cape and Islands towns, based on the latest available data as of September 2025. We've expanded this into a table for easy comparison, including details on whether inspections are included, renewal periods, and if the Community Impact Fee applies.

This table highlights variations in short-term rental fees in Cape Cod and the Islands towns for 2025, making it easier to compare costs and requirements. For example, Provincetown's $750 fee is among the highest, reflecting its popularity and need for strict oversight, while Orleans offers registration without a fee to encourage compliance without financial barriers. Fees are subject to change, so confirm via town websites or the Massachusetts Department of Revenue (DOR).

Explaining Fee Calculations for Cape Cod Short-Term Rentals

Understanding how these fees are calculated is crucial for budgeting as a rental owner. Registration fees are typically flat rates set by local bylaws to cover administrative and inspection costs. For instance, in Mashpee, the $100 fee breaks down into $25 for registration and $75 for a health/safety inspection, ensuring properties meet standards like smoke detectors and egress routes.

Beyond registration, taxes add to the overall cost. Massachusetts imposes a state room occupancy tax of 5.7% on rentals of 90 days or less. Local towns can add up to 6% (or 6.5% in Boston). On Cape Cod, there's an additional 2.75% for the Cape Cod and Islands Water Protection Fund to support environmental initiatives like water quality preservation.

The Community Impact Fee, an optional local add-on of up to 3%, applies specifically to "professionally-managed" units—those where an operator (such as the same owner or property manager) rents two or more properties in the same town, or units in non-owner-occupied multi-family buildings. This fee addresses the strain on local housing and infrastructure from high-volume rentals. For calculation: If your nightly rate is $300, a 3% fee adds $9 per night, collected and remitted via DOR's MassTaxConnect system. Check the DOR's databank for your town's adoption status. Total tax rates can reach 14.45% or more (e.g., 17.45% in Provincetown for impacted units), applied to the rent before fees. (mass.gov)

As an example, for a $2,000 weekly rental in Barnstable: State tax (5.7%) = $114; local (assume 6%) = $120; water fund (2.75%) = $55; total taxes ≈ $289, plus the $90 registration fee annually.

Examples of Registration Processes

Registration processes vary but generally involve online or in-person applications. Take Provincetown as an example: As of July 1, 2025, short-term rental inspections are mandatory under the Massachusetts State Building Code (provincetown-ma.gov). Owners apply via the town's online permitting system, submit proof of $1 million liability insurance, pay $750, and schedule an inspection covering fire safety and occupancy. Renewals are annual, with potential fines for non-compliance.

In Eastham, the process includes a $350 fee plus a $55–60 water test for septic systems. Applications are downloadable from the town website; submit with property details, then undergo an initial inspection, followed by checks every 3–5 years. This ensures environmental compliance in sensitive coastal areas. (eastham-ma.gov)

For Nantucket, pay $250 and register with DOR for tax purposes. If you own multiple units, expect the 3% Community Impact Fee—apply through MassTaxConnect for a certificate. Always register with the state even if no local fee applies, as it's required for all short-term rentals. (nantucket-ma.gov)