Ketchikan, Alaska Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Ketchikan, AK?

Yes—short-term rentals are explicitly allowed in Ketchikan, AK. The Ketchikan Gateway Borough defines short-term rentals as dwellings occupied by “transient” guests for fewer than 30 days, and they are permitted uses across residential, commercial, and miscellaneous land use zones, subject to standards.

Allowed use: Yes, in most zones with basic compliance
Definition: Transient stays under 30 days
Zoning: Permitted with standards in residential, commercial, and miscellaneous zones
Owner-occupancy: Not required
Annual renewals: Not required per 2023 Borough Assembly action

Key source: www.strprofitmap.com/regulations/AK/ketchikan

How to Start a Short-Term Rental Business in Ketchikan

Obtain the free zoning permit from the Ketchikan Gateway Borough Planning Department.
Secure an Alaska State business license (required for all rental income operations).
Register for and collect local sales tax and transient occupancy tax.
Confirm zoning compliance and provide at least one dedicated off-street parking space per STR unit.
Set up a tax remittance process—major platforms (Airbnb/VRBO) do not automatically collect Ketchikan’s local taxes.
Maintain documentation and safety/operational standards under Borough land use codes.

Key source: www.strprofitmap.com/regulations/AK/ketchikan

Required Documents, Permits, Licenses, and Guidelines

Ketchikan Gateway Borough zoning permit (free; no expiration/renewal as of 2023)
Alaska State business license ($50 annually; standard requirement for any business activity including renting real estate)
Sales tax registration (for collecting/remitting local sales tax)
Transient Occupancy Tax (TOT) registration (for collecting/remitting lodging taxes)
Compliance with land use codes and building requirements
Off-street parking: minimum one space per STR unit
No owner-occupancy requirement

Key source: www.strprofitmap.com/regulations/AK/ketchikan and www.gosummer.com/post/alaska-short-term-rental-laws

Specific Regulations: Zoning, Operations, Taxes, and Enforcement

Zoning and Land Use

STRs are permitted with standards in residential, commercial, and miscellaneous zones.
No special conditional use permits required for most residential properties.
Properties must meet standard setback, height, and area requirements for their zones.

Key source: www.strprofitmap.com/regulations/AK/ketchikan

Operational Requirements

Parking: Minimum one off-street parking space per STR unit
Signage: Must comply with zoning district signage requirements
Duration: Rentals must be under 30 consecutive days to qualify as STR
Annual renewals: Removed by Borough Assembly in 2023; permits are permanent once issued

Key sources: www.strprofitmap.com/regulations/AK/ketchikan and www.krbd.org/2023/04/18/ketchikans-borough-assembly-advances-short-term-rental-permitting-but-nixes-annual-renewal-requirement/

Tax Obligations (Borough + City)

Ketchikan has a layered tax structure: Ketchikan Gateway Borough levies baseline taxes, and the City of Ketchikan adds seasonal city taxes inside city limits.

Borough sales tax: 2.5%
Borough Transient Occupancy Tax (TOT): 4%
City of Ketchikan sales tax (seasonal):
- October–March: Additional 3% (total 5.5% with borough sales tax)
- April–September: Additional 5.5% (total 8% with borough sales tax)
City of Ketchikan hotel tax (additional TOT): 7% (combined with borough TOT = 11% total lodging tax)

Total tax burden inside the City of Ketchikan:

Off-season (Oct–Mar): 5.5% sales tax + 11% lodging tax = 16.5%
Peak season (Apr–Sep): 8% sales tax + 11% lodging tax = 19%

Important: Airbnb and VRBO do not automatically collect Ketchikan’s local taxes—you must collect and remit them yourself.

Key sources: www.strprofitmap.com/regulations/AK/ketchikan and www.gosummer.com/post/alaska-short-term-rental-laws

Enforcement and Monitoring

The Borough advanced permitting to monitor STRs’ impact on housing and tax compliance. Annual renewal was removed, but other compliance obligations remain in effect. Always confirm current enforcement procedures with the Planning Department.

Key source: www.krbd.org/2023/04/18/ketchikans-borough-assembly-advances-short-term-rental-permitting-but-nixes-annual-renewal-requirement/

Contact Information (Local Authority in Charge of STRs)

Department: Ketchikan Gateway Borough Planning Department
Planning Director: Richard Harney
Phone: (907) 228-6625
Address: 1900 First Avenue, Ketchikan, AK 99901
Website: www.kgbak.us/
Borough Housing Information page: www.kgbak.us/1052/Housing
Borough Transient Occupancy Tax information: www.kgbak.us/186/Transient-Occupancy-Tax
Borough Sales Tax information: www.kgbak.us/449/Sales-Taxes
Borough Code (zoning/land use): ketchikangateway.borough.codes/

Key source: www.strprofitmap.com/regulations/AK/ketchikan

Source Links and References

STRProfitMap: Ketchikan STR Regulations — www.strprofitmap.com/regulations/AK/ketchikan
KRBD News Coverage (permitting, no annual renewal): www.krbd.org/2023/04/18/ketchikans-borough-assembly-advances-short-term-rental-permitting-but-nixes-annual-renewal-requirement/
Ketchikan Gateway Borough — Housing (general information): www.kgbak.us/1052/Housing
Ketchikan Gateway Borough — Transient Occupancy Tax (TOT): www.kgbak.us/186/Transient-Occupancy-Tax
Ketchikan Gateway Borough — Sales Taxes: www.kgbak.us/449/Sales-Taxes
Borough Code (land use/STR definitions, zoning): ketchikangateway.borough.codes/
GoSummer — Alaska STR Laws Overview (including Ketchikan tax specifics): www.gosummer.com/post/alaska-short-term-rental-laws
Ketchikan Borough Assembly agenda/ordinance reference (permitting concept): destinyhosted.com/agenda_publish.cfm?id=53824&mt=ALL&vl=true&get_month=4&get_year=2023&dsp=agm&seq=8250&rev=0&ag=1318&ln=34477&nseq=8394&nrev=0&pseq=8393&prev=0&vl=true#

Notes:

Outside city limits (within the Borough but not the City), only borough taxes apply (2.5% sales tax + 4% TOT).
Always verify current requirements with the Planning Department; regulations can evolve.
The Jaken Finance Group page contains speculative or forward-looking content that conflicts with the current 2023 Borough action removing annual renewals; verify any future changes directly with local authorities.

Ketchikan, Alaska, is a small city situated on Revillagigedo Island in the southeastern part of the state. Known as the "Salmon Capital of the World," it boasts a population of approximately 8,300. Ketchikan is positioned about 235 miles south of Juneau, the state capital, and is accessible primarily by air and sea due to its island location.

Ketchikan has considerable appeal for short-term rentals, particularly owing to its rich cultural history and natural beauty. Downtown Ketchikan is characterized by its historic Creek Street, a boardwalk built over the water (www.visit-ketchikan.com/en/downtown/creek-street). Visitors also often explore nearby Misty Fjords National Monument (www.fs.usda.gov/recarea/r10/recarea/?recid=78699), a pristine wilderness area with stunning fjords, steep cliffs, and spectacular waterfalls.

Another highlight is the Totem Heritage Center (www.city.ketchikan.ak.us/144/Totem-Heritage-Center), which houses one of the largest collections of unrestored 19th-century totem poles. The city's proximity to Tongass National Forest, the largest national forest in the United States, offers abundant outdoor recreational opportunities including hiking, fishing, and wildlife viewing.

Ketchikan's local attractions and its strategic location make it an attractive destination for short-term rental investments. With its unique combination of natural beauty, cultural richness, and proximity to different outdoor activities, the city presents an inviting option for tourists seeking an authentic Alaskan experience.

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