STR Occupancy and Lodging Taxes Explained
What occupancy, transient, and lodging taxes are, who collects them, and how to build them into your numbers without guessing at a rate.
A tax on the guest stay, layered by jurisdiction
Short-term rentals are usually taxed like hotel stays. The names vary (occupancy tax, transient occupancy tax, lodging tax, hotel tax) but the idea is the same: a percentage of the nightly rate charged to the guest. Several layers can stack, including state, county, city, and sometimes a district or tourism levy.
Sales tax can apply on top of lodging tax in some places, and some jurisdictions add flat per-night or per-stay fees. Which combination applies depends entirely on the address.
Who collects and who remits
Booking platforms often collect and remit some of these taxes on behalf of hosts in some jurisdictions, but not necessarily all of them or all layers. Where the platform does not, the host is responsible for registering, collecting, and filing. Missing a filing can bring penalties and interest, so confirm which taxes the platform handles for your listing.
How it shows up in your underwriting
If the tax is charged on top of the nightly rate, it is a pass-through and mostly affects the guest price and competitiveness. If you absorb it in the listed price, it comes out of your revenue. Decide which model you are using and model it consistently.
For example, if a combined tax were 12% and you priced a night at $200 all-in, you would keep about $178.57 before other costs. That figure is an illustration of the arithmetic, not a rate for any place.
Where to find the real rate
The city page on this site lists what is known for a place, but tax rates change and are set by several bodies. Confirm with the local tax authority and, when in doubt, ask an accountant. This is general information, not tax advice.
FAQ
- Do I owe lodging tax if the platform collects it?
- Often the platform handles collection and remittance for the layers it covers, but hosts can still have registration or filing duties. Check each layer with the local tax office.
- Is lodging tax deductible?
- Tax you collect from guests and pass along is generally not your income or expense in the same way as your own costs. How to report it is a question for a tax professional.
- Do mid-term stays pay lodging tax?
- Many places exempt stays beyond a set number of consecutive nights, but the threshold varies by jurisdiction. Verify the local rule.