In this article, HarborBlue Vacations Rentals breaks down the regulations and taxes applicable to Falmouth, Massachusetts.
Bottom line is that Falmouth will have a new framework for regulating short-term rentals in 2027. This new framework will include mandatory 2-year licenses, strict ownership caps (3 per property owner), a corporate ownership ban, and a requirement for rentals to have a local operator within 20 miles to respond 24/7 to emergencies. Falmouth has some of the most stringent regulations on the Cape, unlike its neighbors in Bourne and Sandwich.
Falmouth, MA Short-Term Rental Taxes – 14.45% – 17.45%
- Massachusetts State Sales Tax – 5.70%
- State Room Occupancy Tax – 6.00%
- Cape Cod and Islands Water Protection Fund – 2.75%
- Community Impact Fee – 0.00%
- (Fee For Owners with Multiple Units – 3.00%)
If apartment is rented for 14 days or fewer during the year, no tax is due.
Falmouth, MA Short-Term Rental Regulations (report here)
- Register through MA Tax Connect
- Obtain Certificate of Registration for properties
- Carry at least $1,000,000 in liability insurance
- Comply with Massachusetts lead paint law (or have exception signed by tenant)
- Register with town of Falmouth (online process pending)
- A local operator within 20 miles available to respond 24/7 to any emergencies (HarborBlue fulfills this new requirement)
- Occupancy limits of two (2) per bedroom plus 2 (2)
- Inspection requirement (pending)
Do you need a local operator within 20 miles available 24/7 to manage your short-term rental in Falmouth? Partner with HarborBlue Vacation Rentals for seamless short-term rental management and to bring your vacation rental into compliance.
Disclaimer: This post is for information purposes, may not be fully exhaustive, and does not constitute legal / tax advice. For any legal / tax advice, please contact a licensed attorney.