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

Before diving into the world of short-term rentals in Pennsylvania, it's crucial to understand the various tax obligations that come with hosting. This guide breaks down the specific lodging and occupancy taxes you'll need to collect and remit as an Airbnb or short-term rental host in Pennsylvania, with detailed examples to help you calculate your tax responsibilities accurately.

Pennsylvania State-Level Lodging Taxes

All short-term rental hosts in Pennsylvania must collect and remit a 6% state hotel occupancy tax on rentals of less than 30 days to the same guest. This tax applies to any property rented to provide lodging, including homes, rooms, apartments, and other accommodations, regardless of whether they're arranged through online platforms or third-party brokers. The tax is similar to Pennsylvania sales tax and must be collected on the total rent, which includes the base room charge plus any cleaning fees.

In 2018, Pennsylvania expanded its tax regulations through Act 109, which broadened the definition of "operator" to include "booking agents" like Airbnb. The act also expanded the definition of "rent" to include "accommodation fees" (the amount charged by booking agents in excess of the base room charge), making these fees subject to hotel occupancy tax as well.

Short-term rental hosts must register for a Sales, Use, and Hotel Occupancy Tax License through the Pennsylvania Department of Revenue's myPATH system. If a booking agent is involved, hosts may need to register for two licenses. So, check in with local authorities to learn more.

County-Specific Tax Requirements

There are a couple of counties with their own taxes that apply to short-term rentals.

Allegheny County

Nestled in southwestern Pennsylvania, Allegheny County is home to Pittsburgh, a vibrant city known for its rich history and cultural attractions. Short-term rental hosts in Allegheny County enjoy strong demand but face a layered tax structure.

In addition to the 6% state hotel occupancy tax, short-term rental hosts in Allegheny County must collect:

• 7% Allegheny County Hotel Room Rental Tax
• 1% additional local hotel tax collected by the state

This brings the total tax rate for short-term rentals in Allegheny County to 14%. The county hotel tax revenue supports the David L. Lawrence Convention Center, tourism promotion, the Sports and Exhibition Authority, and other local initiatives.

Hosts in Allegheny County must register with both the Pennsylvania Department of Revenue for the state tax and the Allegheny County Treasurer's Special Tax Division for the county tax. Platforms like Airbnb and VRBO collect and remit these taxes on behalf of hosts, but operators are still required to register with the Special Tax Division and report their taxable revenue, providing proof that the booking agent has remitted the tax on their behalf.

Example Calculation: A 2-night Stay at $120 per night

1. Total nightly rate: $120 x 2 = $240
2. Cleaning fee: $60
3. Total rental revenue: ($120 × 2) + $60 = $300
4. State hotel occupancy tax: $300 × 6% = $18
5. Local hotel tax: $300 × 1% = $3
6. County hotel room rental tax: $300 × 7% = $21
7. Total tax: $18 + $3 + $21 = $42
8. Amount collected from guest: $300 + $42 = $342

Philadelphia County

With its historic sites, world-class museums, and vibrant food scene, Philadelphia attracts millions of tourists annually. Short-term rental hosts in this bustling metropolis face the highest occupancy tax rate in the state.

Short-term rental hosts in Philadelphia County are subject to:

1. 6% state hotel occupancy tax
2. 1% city hotel occupancy tax
3. 8.5% city Hotel Room Rental Tax

This creates a combined tax rate of 15.5%, the highest in Pennsylvania. The 8.5% Hotel Room Rental Tax is in addition to the Hotel Occupancy Tax and is imposed by the City.

Philadelphia hosts must register with the Pennsylvania Department of Revenue for the state and city hotel occupancy taxes. Airbnb collects and remits these taxes on behalf of hosts in Philadelphia, making it easier for hosts to stay compliant.

Example Calculation: A 3-night stay at $150 per night

1. Total nightly rate: $150 x 3 = $450
2. Cleaning fee: $75
3. Total rental revenue: ($150 × 3) + $75 = $525
4. State hotel occupancy tax: $525 × 6% = $31.50
5. City hotel occupancy tax: $525 × 1% = $5.25
6. City Hotel Room Rental Tax: $525 × 8.5% = $44.63
7. Total tax: $31.50 + $5.25 + $44.63 = $81.38
8. Amount collected from guest: $525 + $81.38 = $606.38

Bucks County

Bucks County, with its charming small towns, rolling hills, and proximity to Philadelphia, offers a perfect blend of rural beauty and convenience. Short-term rental hosts in the county benefit from strong tourism while navigating their specific tax obligations.

In Bucks County, short-term rental hosts must collect:

1. 6% state hotel occupancy tax
2. 5% county Lodging Room Rental Tax

This results in a combined tax rate of 11% for short-term rentals in Bucks County. The county tax applies to any room having at least one bed or sleeping accommodations rented for less than 30 days.

Short-term rental hosts in Bucks County must register with both the Pennsylvania Department of Revenue and the Bucks County Treasurer's Office. The county tax funds the Bucks County Conference and Visitors Bureau to promote tourism in the area.

Example Calculation: A 4-night stay at $130 per night

1. Total nightly rate: $130 x 4 = $520
2. Cleaning fee: $140
3. Total rental revenue: ($130 × 4) + $140 = $660
4. State hotel occupancy tax (6%): $660 × 6% = $39.6
5. County Lodging Room Rental Tax (5%): $660 × 5% = $33
6. Total tax: $39.60 + $33 = $72.6
7. Amount collected from guest: $660 + $72.60 = $732.6

Cumberland County

Cumberland County offers visitors a perfect blend of natural beauty and historical significance. Short-term rental hosts in this central Pennsylvania county must navigate these specific tax requirements to operate legally.

Short-term rental hosts in Cumberland County are required to collect:

1. 6% state hotel occupancy tax
2. 5% county hotel tax

The combined tax rate for short-term rentals in Cumberland County is 11%. Like other counties, this tax applies to accommodations rented for less than 30 consecutive days.

Cumberland County hosts must register with the Pennsylvania Department of Revenue for the state tax and the Cumberland County Treasurer's Office for the county tax. Even if a third-party platform like Airbnb collects and remits the tax on your behalf, you must still register and complete monthly reporting with the County Treasurer's Office.

Importantly, penalties apply if you miss the filing deadline. The penalty is equal to 1.5% of the tax due for every month that the tax payment is late.

Example Calculation: A 3-night stay at $110 per night

1. Total nightly rate: $110 x 3 = $330
2. Cleaning fee: $60
3. Total rental revenue: ($110 × 3) + $60 = $390
4. State hotel occupancy tax: $390 × 6% = $23.40
5. County hotel tax: $390 × 5% = $19.50
6. Total tax: $23.40 + $19.50 = $42.90
7. Amount collected from guest: $390 + $42.90 = $432.90

Warren County

With its pristine rivers, expansive forests, and small-town charm, visitors come for fishing, hiking, and exploring natural wonders. Short-term rental hosts in this northwestern Pennsylvania county enjoy a growing tourism market with specific tax considerations.

Short-term rental hosts in Warren County must collect:

1. 6% state hotel occupancy tax
2. 5% county Hotel Occupancy Tax

This creates a total tax rate of 11% for short-term rentals in Warren County. The county's 5% tax is used by the Warren County Visitors Bureau, the county's Designated Marketing Organization (DMO), to promote tourism in the area.

Hosts must register with both the Pennsylvania Department of Revenue and the Warren County Treasurer's Office. The county collects a 4% administration fee from the monthly revenues, with the remaining 96% distributed to the Warren County Visitors Bureau.

Example Calculation: A 2-night stay at $100 per night

• Total nightly rate: $100 x 2 = $200
• Cleaning fee: $50
• Length of stay: 2 nights
• Total rental revenue: ($100 × 2) + $50 = $250
• State hotel occupancy tax: $250 × 6% = $15
• County Hotel Occupancy Tax: $250 × 5% = $12.50
• Total tax: $15 + $12.50 = $27.50
• Amount collected from guest: $250 + $27.50 = $277.50

Wrapping Things Up

By understanding and fulfilling these tax obligations, Pennsylvania hosts can operate their short-term rentals confidently and compliantly, focusing on providing exceptional guest experiences rather than worrying about potential tax issues.

We always recommend contacting your local authorities and government offices to fully learn about your tax obligations and how to fulfill them.