City Watch
Short-term rental rules in Manchester, VT
How Manchester regulates short-term rentals: the rules that apply, their sources, and pending changes.
Short-term rentals here are subject to registration, a lodging tax, or a small number of operating rules.
- No town-level STR ordinance, registration, permit, or cap
- Whole-home STR not defined as a separate zoning use → treated as permitted residential dwelling rental (per VT Supreme Court precedent requiring a town to specifically define the use before regulating it)
- Subject only to the Vermont state layer: 9% Meals & Rooms (Rooms) Tax + 3% STR surcharge (eff. 8/1/2024) + state STR registration for independent operators
- Village of Manchester (a SEPARATE incorporated village, not the Town) has its own STR registration ordinance — does NOT bind the Town of Manchester regime
Based on: Manchester Land Use & Development Ordinance, Chapter III (revisions adopted 5/21/2025; effective 6/11/2024) — contains
Summary of the rule
Vermont Rooms Tax of 9% applies to sleeping accommodations rented to the public totaling more than 14 days/year; a 3% short-term rental surcharge is imposed in addition to the 9% Rooms Tax and any 1% local option tax, effective for rents collected on or after August 1, 2024. Independent (off-platform) operators must register with the Vermont Department of Taxes.
View the ordinance source ↗✓ Verified
Last reviewed Sep 15, 2026 · Sources · Report an error
Pending legislation
Monitoring Manchester · system last checked Oct 25, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.