2026 Rental Tax Changes in Aspen and the Roaring Fork Valley | Avant Garde Aspen Luxury Real Estate

What Property Owners and Tenants Need to Know

If you own or manage short-term rentals in the Roaring Fork Valley, there are important tax changes taking effect in 2026 that will directly impact your lease agreements and collections.

Following the recent election, several municipal tax measures were passed, increasing combined sales and lodging tax rates across Aspen, Snowmass Village, and unincorporated Pitkin County.

While final confirmation from the Colorado Department of Revenue is issued on January 1, local finance departments have provided the following updated rates.

📍 City of Aspen

Effective January 1, 2026 (for arrivals 1/1/26 and after):

• STR-C: 22.35% (formerly 21.3%)

• STR-OO: 17.35% (formerly 16.3%)

• STR-LE: 12.35% (formerly 11.3%)

These increases apply to leases under 30 days.

📍 Unincorporated Pitkin County

• New combined rate: 7.15%

• Former rate: 6.9%

📍 Town of Snowmass Village

Base Village:

• 14.55% (formerly 14.3%)

Town of Snowmass (outside Base Village):

• 13.05% (formerly 12.8%)

What This Means for Short-Term Rentals

These updated tax rates must be applied to all leases under 30 days with arrival dates of January 1, 2026 or later.

It does not matter when the lease was signed. Tax is assessed based on arrival date.

There is no mechanism to waive or avoid this tax increase. It must be collected.

Required Action Steps for Brokers & Property Managers

If you manage rentals in Aspen or Snowmass:

1. Recalculate the additional tax due before the tenant arrives.

2. Add the additional tax amount to the lease.

3. Have the tenant initial acknowledging the adjustment.

4. Collect the additional tax prior to arrival.

Important:
Because tax is filed based on arrival (not departure), and stays will vary in length, this additional tax cannot simply be reconciled with the security deposit at the end of the lease. It must be collected separately before the stay begins.

Strategic Considerations for Property Owners

While the percentage increases appear modest, on luxury rentals in Aspen and Snowmass—especially high-season leases—these adjustments can represent meaningful dollar amounts.

For example:

• On a $50,000 rental, a 1% increase equals $500.

• On a $150,000 Festive rental, the impact becomes much more substantial.

For owners, this reinforces the importance of:

• Clear lease language

• Accurate tax calculation

• Transparent communication with tenants

For tenants booking peak Aspen stays in 2026, budgeting slightly higher total occupancy costs will be necessary.

The Roaring Fork Valley continues to see evolving regulatory and tax environments, particularly around short-term rentals. Staying ahead of these changes protects owners from compliance issues and ensures a smooth experience for guests.

If you own a rental property in Aspen, Snowmass Village, or Pitkin County and have questions about how these changes affect your bookings for 2026, I’m happy to walk through the numbers with you.

Proactive planning now will prevent last-minute issues before peak season arrivals.

Interested in renting as a tenant, or leasing your property in Aspen, Snowmass, or the greater Roaring Fork Valley? Reach out to Stephanie Kroll: [email protected] | 303.345.5886