Texas Hotel Occupancy Tax for Short-Term Rentals: Rates and Filing
The Texas hotel occupancy tax applies to short-term rentals, not just hotels. The state rate is 6% of the room price for stays of 29 days or less. Cities, some counties and special districts add their own hotel tax on top. Some booking platforms collect the state tax for hosts, but local rules still vary.
This guide explains when the tax applies, how state and city rates stack, and how to register and file hotel tax in Texas. It uses Austin as a worked city example and lists rates Airbnb collects in other cities. Rates change, so confirm details with the Texas Comptroller and your city before you file.
Key Takeaways
Texas charges a 6% state hotel occupancy tax on rooms costing $15 or more per day, including short-term rentals of 29 days or less.
Guests who stay at least 30 consecutive days are exempt as permanent residents in Texas, but any break in the stay voids that exemption.
Austin adds an 11% city hotel tax to the 6% Texas state rate, made up of a 9% occupancy tax and a 2% venue tax.
The Texas Comptroller says an owner who rents only through a platform that collects the state tax does not have to collect and remit it.
Texas hosts should register with the Comptroller, check city rules, and use ChargeAutomation for tax line items, itemized receipts and reporting exports on direct bookings.
Does the Texas Hotel Occupancy Tax Apply to Short-Term Rentals?
Yes, the tax applies to short-term rentals of 29 days or less. The Comptroller lists houses, condos, apartments and bed and breakfasts alongside hotels and motels. The state hotel tax covers any room or space that costs $15 or more per day. Homeowners who rent to event visitors must collect it the same way a hotel does.
So what is hotel occupancy tax? It is a tax on the price a guest pays to stay in a room or home. The state rate is 6% of the cost of the room. Local hotel taxes can apply to rooms that cost as little as $2 per day.
The main exemption is for permanent residents. A guest who stays at least 30 consecutive days is exempt, and any break in the stay voids the exemption. Guests who give written notice of a 30-day stay are exempt from the day of notice. Guests who give no notice pay tax for the first 30 days, then stop.
Texas hotel taxes can apply to these types of short-term stays:
Whole homes rented for 29 days or less
Condos and apartments rented by the night
Rooms rented inside a home
Bed and breakfasts
Homes rented to visitors during local events
Rooms costing $15 or more per day for the state tax
Texas Hotel Occupancy Tax Filing: State Returns and City Taxes
Hosts register for the state tax by sending Form AP-102, the Hotel Occupancy Tax Questionnaire, to the Comptroller. The Comptroller does not issue printed hotel tax permits. Monthly returns are due by the 20th of the month after each month ends. Some hosts qualify to file quarterly, with returns due on the 20th after each quarter.
Filing on time pays off. The Comptroller allows a 1% discount when the tax is filed and paid by the due date. A late report costs $50, and late tax adds a 5% or 10% penalty. Hosts can file and pay through Webfile, the Comptroller's online system.
The Comptroller says cities and counties collect their own local hotel taxes. How much is hotel tax in a city like Austin? Austin charges 11%, made up of a 9% hotel tax and a 2% venue tax. Hosts there file a hotel occupancy tax report each quarter, even when no tax was collected.
Platforms can take over some of the work. Since April 1, 2025, Austin requires platforms that take payment for short-term rentals to collect and remit city tax. Austin hosts still report how much tax each platform collected for them. Airbnb also lists city rates it collects, such as 9% in San Antonio and 7% in Houston.
Hosts who collect the tax themselves should track these filing items:
State return due by the 20th of the next month for monthly filers
The 1% discount for filing and paying on time
The $50 fee for each late report
City hotel tax reports, such as the Austin quarterly report
Amounts each platform collected for you
Direct bookings where you collected the tax yourself
Stays of 30 days or more that qualify as exempt
How ChargeAutomation Supports Texas Short-Term Rental Hosts
Registering for and paying the hotel tax is handled directly with the Texas Comptroller and your city. ChargeAutomation is not part of that process and does not file returns. Once a rental is taking bookings, though, hosts still need clear tax charges, good records and protection from fraud.
On direct bookings, ChargeAutomation can show the hotel tax as its own line item on the guest payment. Automatic receipts and invoices support custom line items and tax handling, so state and city amounts can be listed clearly. Reports with XLSX and CSV export let hosts pull booking and payment data for each monthly or quarterly return.
ChargeAutomation also helps protect income once guests book directly. Guests can verify ID with a live selfie through Stripe Identity. Payments use 3D Secure, and digital rental agreements add e-signatures for chargeback defense. On Airbnb bookings, Airbnb collects payment and verifies guests, so hosts follow Airbnb's rules there.
ChargeAutomation connects with 50+ PMS platforms, including Hostaway, Guesty, Hostfully and Streamline. Start for free at chargeautomation.com.
Texas short-term rental hosts use these ChargeAutomation features once a rental is running:
Hotel tax shown as a separate line item on direct bookings
Itemized receipts and invoices with tax handling
Booking and payment reports with XLSX and CSV export
Guest ID checks with a live selfie through Stripe Identity
Digital rental agreements with e-signatures
Chargeback and fraud protection with 3D Secure
Security deposit holds where the booking channel allows them
Frequently Asked Questions
How much is hotel occupancy tax in Texas?
The state rate is 6% of the room price. Cities, some counties and special districts add their own rate on top. Austin, for example, adds 11%, while Airbnb lists 9% for San Antonio and 7% for Houston.
What is a hotel occupancy tax on an Airbnb in Texas?
It is the state and local tax on the price of a short stay. Texas charges 6% on stays of 29 days or less, and many cities add more. Airbnb collects the 6% state tax and some city taxes on its bookings, but hosts must check all other duties.
Do I need to collect Texas hotel tax if Airbnb collects it?
No, not for the state tax on those bookings. The Comptroller says an owner who rents only through a collecting platform does not have to collect and remit state tax. You still need to check local taxes and collect tax on any direct bookings.
Who collects hotel taxes on a Texas vacation rental?
The property owner collects and remits the tax, unless a platform that collects it handles the booking. Hosts who use their own website must collect and remit the tax themselves. Local hotel occupancy taxes are paid to the city or county.
What is the hotel tax in Austin, Texas?
Austin charges an 11% city hotel tax, split into a 9% occupancy tax and a 2% venue tax. That is on top of the 6% state rate. Since April 1, 2025, platforms that take payment for short-term rentals must collect the city tax for hosts.
