News · 12 October 2026 · 5 min read

Uttarakhand homestay rules 2026: what changes for Dehradun hosts

Uttarakhand's cabinet has approved a revised homestay scheme: up to 8 rooms, permanent residents only, five-year registration, and no homestays inside city corporations.

What happened

Uttarakhand has rewritten the rules for registered homestays. ETV Bharat reported on 20 May 2026 that the cabinet had already approved the revised scheme. The changes, as reported:

More rooms. A homestay can now have up to 8 rooms, up from 6, with no more than 24 beds in total. Bed and breakfast (B&B) units have the same cap.
Residents only. Homestays are for permanent residents of Uttarakhand who own the house and live in it.
Where they are allowed. New homestay registrations are limited to Nagar Panchayat areas and rural areas. B&B units can register in both rural and urban areas.
Five-year registration. Registration is valid for five years and must then be renewed. Renewal is now a self-renewal process, without a fresh government approval. Fees vary with the number of rooms, and registration, verification and renewal are online.
Community tourism. A new category lets 8 to 10 homestays spread across 3 to 6 villages register together through a society, cooperative or community organisation. ETV Bharat said grants are proposed at the group level for building or renovation.

The direction was set earlier. In January 2026 Indian Masterminds reported that the homestay and B&B schemes had been brought together under revised rules made under the state's 2014 tourism and travel business registration rules. It said homestays in towns, or run by outsiders through a caretaker, must now register as B&Bs. Rural homestays run by permanent residents keep the tax and utility concessions.

Why the change? In September 2025 PropNewsTime reported that the tourism department wanted to stop misuse. It said some operators registered homestays but used residential power connections, hired staff and did not live there. That report also described a proposal to give unregistered homestays 60 days to register, with a ₹1 lakh penalty after that. We could not confirm whether that penalty is in the final rules, so treat it as a proposal.

Reports disagree on how many homestays are registered. Tourism secretary Dheeraj Garbyal told ETV Bharat in May 2026 that there were more than 5,000. Indian Masterminds put the number at 6,000 in January 2026, with Nainital first and Dehradun district second.

Subsidies continue under the Deen Dayal Upadhyay homestay scheme. On 19 September 2026 The Bharat Now reported that 537 people had received ₹79.28 crore in subsidy over four years. It gave the limits as 50% of project cost up to ₹15 lakh in hill areas, and 25% up to ₹7.5 lakh in the plains. The same report said the subsidy is not available in municipal corporation and municipal council areas.

One tax change also helps small hosts. From 22 September 2025, GST on rooms priced up to ₹7,500 per unit per day fell from 12% to 5%, according to TaxGuru. The lower rate comes without input tax credit.

What it means for hosts in Dehradun

This section is our view, based on the reports above.

Inside Dehradun city, plan on the B&B route. Dehradun city is a municipal corporation area. Under the revised rules, new homestay registrations are for Nagar Panchayats and rural areas. If your house is inside the corporation limits, ask the tourism office about B&B registration before you take bookings.

On the outskirts, check your exact area. Whether your village is rural, a Nagar Panchayat or inside the corporation decides which scheme applies and whether the subsidy is possible. Get this in writing from the district tourism office. Do not rely on a neighbour's registration.

If you are buying a house to run as a homestay. The scheme is for permanent residents living in their own home. If you are moving from outside the state, the homestay label may not be open to you, and land rules for outsiders also apply. Read our guide to Uttarakhand's land law for buyers from outside first.

Keep your paperwork current. Registration now runs for five years. Note the renewal date, and keep the room and bed count within the limits you registered.

Price under ₹7,500 a night where you can. At that level the GST rate is 5%. Talk to your accountant about the lost input tax credit before you set rates.

Once you are registered, you can put your rooms in front of guests on our homestays in Dehradun page or list your property for free.

Questions people ask

Can I register a homestay inside Dehradun city?

Under the revised rules as reported by ETV Bharat, new homestay registrations are for Nagar Panchayat and rural areas. Inside the city, B&B registration is the route to ask about.

How many rooms can a homestay have now?

Up to 8 rooms and 24 beds in total, up from 6 rooms, according to ETV Bharat's report on the cabinet-approved scheme.

How much subsidy can a homestay get?

The Bharat Now reported 50% of project cost up to ₹15 lakh in hill areas and 25% up to ₹7.5 lakh in the plains. It said municipal corporation and council areas are excluded.

Sources

Thinking of opening your home to guests near Dehradun? Call Neeraj Thapa on +91 98320 03494.