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

Starting an Airbnb in the Lone Star State? Understanding your tax obligations is crucial to running a successful and compliant short-term rental business. Texas has a multi-layered tax structure that includes state, county, and city taxes that apply to your rental income. Let’s break down everything you need to know about collecting and remitting these taxes in 2025.

State-Wide Lodging and Occupancy Taxes in Texas

If you’re renting out a property in Texas for periods of less than 30 consecutive days, you’re required to collect the state Hotel Occupancy Taxel Occupancy Tax (Hotel Occupancy Tax) from your guests. This tax applies to all short-term accommodations, including houses, apartments, condos, and rooms that cost $15 or more per day.

The Texas state Hotel Occupancy Tax rate is 6% of the total cost of the room, including cleaning fees and other charges related to the stay. This tax must be collected from your guests and remitted to the Texas Comptroller’s Office either monthly or quarterly, depending on your tax volume.

Does Airbnb or VRBO Collect and Remit Taxes in Texas?

Both Airbnb and Vrbo collect the 6% state Hotel Occupancy Taxel occupancy tax on behalf of hosts in Texas, which is great news for hosts who primarily use major platforms. This arrangement has been in place with Airbnb since May 1, 2017.

If you exclusively use these platforms and they collect all state Hotel Occupancy Taxel occupancy taxes on your behalf, you don’t need to register for a tax account with the Texas Comptroller’s Office or file state Hotel Occupancy Taxel occupancy tax returns for those bookings. However, you should maintain records of your bookings in case of an audit.

City and County-Specific Local Tax Requirements

While the state tax is consistent across Texas, local taxes vary significantly by location. Cities, counties, and special purpose districts are authorized to impose additional local Hotel Occupancy Taxel occupancy taxes on top of the state tax. These local taxes typically apply to sleeping accommodations costing $2 or more per day.

Local governments can impose Hotel Occupancy Taxel occupancy tax rates of up to 7%, though some cities have higher rates due to special provisions. Municipalities can also impose special taxes like a Sports Authority tax and a convention center expansion tax among others. However, the combined state + local tax on a Hotel Occupancy Taxel stay cannot exceed 17%. Unlike the state tax, local taxes are typically remitted directly to the local taxing authority, not the state.

Here’s a list of cities or counties with special local taxes.

City of Austin

The City of Austin charges a 9% Hotel Occupancy Tax plus a 2% "venue tax," totaling an 11% local tax rate. Combined with the 6% state tax, guests pay a 17% total tax. The venue tax helps fund convention and arena projects, while the overall Hotel Occupancy Tax supports tourism, events, and cultural facilities.

City of Dallas

Dallas imposes a 9% Hotel Occupancy Tax (increased from 7% in 2023) plus an additional 2% in designated Tourism Public Improvement Districts, totaling an 11% local tax. Including the 6% state tax, the total tax is 17%. Dallas uses these funds to support its convention center, promote tourism, and develop hotel and cultural projects.

City of Fort Worth

Fort Worth charges a 9% Hotel Occupancy Tax, plus a 2% citywide “convention” tax added in 2023, making the total local tax 11%. With the state’s 6%, guests pay a 17% total tax. Hotel Occupancy Tax revenue is allocated to the Fort Worth Convention Center, cultural projects, and tourism marketing.

City of Houston

Houston applies a 7% Hotel Occupancy Tax, plus a 2% Houston Arts/Culture tax, totaling 9% locally. An extra 2% Sports Authority tax also applies, leading to a 17% total tax (6% state + 7% city + 2% arts + 2% sports). Funds support tourism, the Greater Houston Convention & Visitors Bureau, and arts and culture programs like the Houston Arts Alliance and Museum District.

Harris County

In Harris County, hotels outside Houston city limits pay a 7% county tax plus the 2% Sports & Community Venues tax. Combined with the 6% state tax, the total tax is 15%. Inside Houston, the county tax drops to 2%, and the overall total remains 17%. Harris County uses these funds for sports facilities and tourism promotion.

City of San Antonio

San Antonio imposes a 7% Hotel Occupancy Tax plus a 2% “convention center expansion” tax, totaling 9% locally. Additionally, the city collects 1.75% for Bexar County, leading to a 15.75% total tax (9% city + 1.75% county + 6% state). (Some sources round it to 16.75%.) Revenue supports the Henry B. González Convention Center, River Walk maintenance, and tourism marketing.

Bexar County

Bexar County levies a 2% Hotel Occupancy Tax on stays outside San Antonio. Combined with the 6% state tax, guests pay 8% total. These funds are used for county promotion and cultural projects.

City of Galveston

Galveston charges a 9% Hotel Occupancy Tax, resulting in a 15% total tax (9% city + 6% state). The city uses Hotel Occupancy Tax revenue for park board initiatives, beach maintenance, and tourism development.

City of Corpus Christi

Corpus Christi also imposes a 9% Hotel Occupancy Tax, resulting in a 15% total tax (9% city + 6% state). Funds support local tourism marketing and convention services.

City of Bryan

Bryan applies a 7% Hotel Occupancy Tax, making the total tax 13% (7% city + 6% state). Hotel Occupancy Tax revenue promotes local tourism, including free visitor guides and online promotion.

City of Conroe

Conroe levies a 7% Hotel Occupancy Tax, totaling 13% with the state tax. Proceeds fund the city’s tourism bureau and cultural venues.

City of Farmers Branch

Farmers Branch imposes a 7% Hotel Occupancy Tax, for a 13% total tax. The city uses these funds for tourism promotions and local events.

City of Abilene

Abilene charges a 7% Hotel Occupancy Tax, which helps fund the local convention center and tourism programs. (Total 13% with the state tax.)

In all cases, guests pay the 6% state tax plus all applicable local city and county taxes.

Example Lodging Tax Calculation For a Property in Austin:

A 2-night stay at $250 per night.

• Total nightly Rate: $250 x 2 = $500
• Cleaning Fee: $50
• Total Listing Price for a 3-night stay: ($250 × 2) + $50 = $550
• Texas State Hotel Occupancy Tax (6%): $550 x 0.06 = $33
• Austin City Hotel Occupancy Tax (9%): $550 x0.09 = $49.50
• Austin Local Venue Tax (2%): $550 x 0.02 = $11
• Total Tax Collected (17%): $93.5
• Total Guest Payment: $550 + $93.50 = $643.5

Wrapping Things Up

Understanding and complying with Texas hotel occupancy tax requirements is an essential part of running a successful short-term rental business. While the 6% state tax is consistent across Texas, local taxes vary significantly by location. By staying informed about your tax obligations and maintaining good records, you can avoid penalties and operate your short-term rental business with confidence in the Lone Star State.

These tax ranges are meant for general information purposes. Local counties and even cities can have more specific rates that only apply to them. For this reason, we still highly recommend checking out the local STR regulations in your area or contacting local officials for more information.