The Complete Ohio Airbnb Host Lodging Tax Guide: Airbnb Ohio Occupancy Tax Breakdown

As an Airbnb host in Ohio, navigating the complex landscape of lodging and occupancy taxes is crucial for your business success and legal compliance. These taxes vary significantly across different counties and cities throughout the state, with each jurisdiction implementing its own rates and collection methods. This comprehensive guide breaks down everything you need to know about lodging and occupancy taxes in Ohio, helping you understand exactly what you'll need to pay based on your property's location.

Ohio State-Level Lodging Taxes

In Ohio, short-term rentals are subject to both state and local lodging taxes. The state occupancy tax is collected in lieu of the state sales tax at a rate of 6% for accommodations rented to transient guests (those staying fewer than 30 consecutive days). This state tax applies to all short-term rental transactions throughout Ohio, regardless of county or municipality.

As an Airbnb host, you're responsible for understanding and complying with all applicable tax laws. However, in many jurisdictions throughout Ohio, Airbnb and other platforms like Vrbo automatically collect and remit certain taxes on your behalf. Despite this assistance, hosts are still responsible for assessing all other tax obligations, including any additional state and local taxes not collected by the booking platform.

City and County-Specific Tax Requirements

Aside from the state occupancy tax of 6%, there are also a handful of counties and cities that impose their own local taxes for STRs.

Cuyahoga County & Cleveland

In Cuyahoga County, Airbnb hosts must collect and remit lodging taxes for short-term stays. For properties located in Cleveland, guests are subject to a 3% Transient Occupancy Tax (TOT) in addition to Cuyahoga County's 5.5% bed tax. The good news for hosts is that Airbnb automatically collects and remits these taxes on your behalf.

Beyond tax collection, Cleveland requires short-term rental operators to register annually with the city and pay a $70 fee per unit. Additionally, the city stipulates that the short-term rental must be the host's primary residence, and the host must live on the property for over 51% of the calendar year.

Example Cleveland Tax Calculation: For a 4-night Airbnb stay with a base rate of $125 per night

• Base rental amount: $500
• Cleaning fee: $75
• Cleveland TOT (3%): $17.25 (applied to base + cleaning)
• Cuyahoga County bed tax (5.5%): $31.63 (applied to base + cleaning)
• State occupancy tax (6%): $34.50 (applied to base + cleaning)
• Total taxes: $83.38
• Total charged to guest: $658.38

Hamilton County & Cincinnati

Hamilton County, which includes Cincinnati, has one of the highest combined lodging tax rates in Ohio at 7.5%. This county tax is distributed to support various tourism and convention initiatives. Of the 7.5% total county lodging tax, 3% supports the Cincinnati USA Convention and Visitors Bureau, 3.5% is earmarked for convention center renovations and expansions, and 1% goes toward convention-related facilities.

For Airbnb hosts in Cincinnati specifically, guests will pay both the city and county taxes as part of their reservation. Airbnb collects and remits these taxes automatically for hosts with listings in Cincinnati.

Example Cincinnati Tax Calculation: For a 2-night Airbnb stay with a base rate of $150 per night:

1. Base rental amount: $300
2. Cleaning fee: $50
3. Hamilton County lodging tax (7.5%): $26.25 (applied to base + cleaning)
4. State occupancy tax (6%): $21 (applied to base + cleaning)
5. Total taxes: $47.25
6. Total charged to guest: $397.25

Erie County

Erie County imposes a 4% excise tax on transactions by which lodging is furnished to transient guests. Property owners must register their short-term rental business with the Erie County Auditor within thirty days after commencing business. Unlike hotels, short-term rentals are not issued a "Transient Occupancy Certificate" upon approval.

Erie County partners with LocalGov, an online portal where hosts can register, file, and pay their lodging taxes. The tax filing is due on the 15th of the month following the end of each quarter, and hosts may face penalties for late payments, including a 10% penalty plus interest.

Example Erie County Tax Calculation: For a 5-night Airbnb stay with a base rate of $110 per night.

1. Base rental amount: $550
2. Cleaning fee: $80
3. Erie County lodging tax (4%): $25.20 (applied to base + cleaning)
4. State occupancy tax (6%): $37.80 (applied to base + cleaning)
5. Total taxes: $63
6. Total charged to guest: $693

Lake County

Lake County collects a 5% lodging tax that provides funding for county tourism promotion and activities. The excise tax on lodging is spent solely to make contributions to the Visitor's Bureau and Lakeshore Improvement. New lodging businesses in Lake County need to apply for a certificate of registration from the County, though there is no fee to register.

Example Lake County Tax Calculation: For a 3-night Airbnb stay with a base rate of $120 per night.

1. Base rental amount: $360
2. Cleaning fee: $60
3. Lake County lodging tax (5%): $21 (applied to base + cleaning)
4. State occupancy tax (6%): $25.20 (applied to base + cleaning)
5. Total taxes: $46.20
6. Total charged to guest: $466.20

Hocking County

In Hocking County, hosts are required to collect a 6% lodging tax, which is split evenly – 3% goes to the county and 3% to the township where the lodging is located. Unlike some other counties, Hocking County requires hosts to remit their taxes monthly, and you must register your property with the county before beginning operations.

An important note for Hocking County hosts: the Lodging Tax Administrator does not collect for your township! You must send the township portion separately to the appropriate township authority.

Example Hocking County Tax Calculation: For a 4-night Airbnb stay with a base rate of $135 per night.

1. Base rental amount: $540
2. Cleaning fee: $70
3. Hocking County portion (3%): $18.30 (applied to base + cleaning)
4. Township portion (3%): $18.30 (applied to base + cleaning)
5. State occupancy tax (6%): $36.60 (applied to base + cleaning)
6. Total taxes: $73.20
7. Total charged to guest: $683.20

Montgomery County & Dayton

Montgomery County imposes a 3% lodging tax administered by the Office of Management and Budget under the authority of the Board of County Commissioners. This tax is collected from transient lodgers in accommodations with five or more sleeping rooms. The tax funds the Dayton/Montgomery County Convention & Visitors Bureau and Cultural Facilities.

Example Montgomery County Tax Calculation: For a 3-night Airbnb stay with a base rate of $95 per night.

1. Base rental amount: $285
2. Cleaning fee: $55
3. Montgomery County lodging tax (3%): $10.20 (applied to base + cleaning)
4. State occupancy tax (6%): $20.40 (applied to base + cleaning)
5. Total taxes: $30.60
6. Total charged to guest: $370.60

Athens County

Guests who book Airbnb listings in Athens County will pay a 3% lodging tax on the listing price, including any cleaning fees, for reservations 29 nights and shorter. Airbnb collects and remits this tax automatically for hosts, which simplifies the tax compliance process.

Example Athens County Tax Calculation: For a 2-night Airbnb stay with a base rate of $90 per night.

• Base rental amount: $180
• Cleaning fee: $50
• Athens County lodging tax (3%): $6.90 (applied to base + cleaning)
• State occupancy tax (6%): $13.80 (applied to base + cleaning)
• Total taxes: $20.70
• Total charged to guest: $250.70

Liberty Township

The total tax on hotel stays in Liberty Township (and throughout most of Butler County) is 12.5%, which is broken down as follows: County Sales Tax (6.5%), County Lodging Tax for Convention and Visitors Bureau (3%), and Township Lodging Tax (3%). Additionally, if the property is located within the Liberty Center mixed-use development, an additional 0.5% user fee is levied by the Liberty Community Authority.

Example Liberty Township Tax Calculation: For a 3-night Airbnb stay with a base rate of $105 per night.

1. Base rental amount: $315
2. Cleaning fee: $60
3. County Sales Tax (6.5%): $24.38 (applied to base + cleaning)
4. County Lodging Tax (3%): $11.25 (applied to base + cleaning)
5. Township Lodging Tax (3%): $11.25 (applied to base + cleaning)
6. Total taxes: $46.88
7. Total charged to guest: $421.88

For a property within Liberty Center, add the 0.5% user fee:

1. Liberty Center user fee (0.5%): $1.88
2. Revised total charged to guest: $423.76

Yellow Springs

The Village of Yellow Springs collects a 3% lodging tax for all qualifying short-term lodging establishments, including Airbnbs and other types of accommodations. All operators of qualifying lodging establishments must register annually and submit lodging tax twice a year. This tax went into effect on January 1, 2018, with collections beginning on July 31, 2018.

Example Yellow Springs Tax Calculation: For a 2-night Airbnb stay with a base rate of $115 per night.

1. Base rental amount: $230
2. Cleaning fee: $45
3. Yellow Springs lodging tax (3%): $8.25 (applied to base + cleaning)
4. State occupancy tax (6%): $16.50 (applied to base + cleaning)
5. Total taxes: $24.75
6. Total charged to guest: $299.75

Wrapping Things Up

Understanding your tax obligations as an Airbnb host in Ohio is crucial for running a legitimate and profitable short-term rental business. While Airbnb collects and remits certain taxes automatically in some jurisdictions, hosts are ultimately responsible for compliance with all applicable tax laws.

Consider consulting with a tax professional who specializes in short-term rentals to ensure you're meeting all your tax obligations and maximizing potential deductions. Proper tax compliance not only helps you avoid penalties but also contributes to the tourism development and community improvements that make your destination attractive to visitors.