What are the short-term rental rules and taxes in Austin, Texas?
Short answer
Every short-term rental inside Austin's full or limited purpose jurisdiction needs a city STR license, which costs $736.60 new and lasts two years. Hotel occupancy tax is 11% to the city plus 6% to Texas, 17% combined. Airbnb and Vrbo collect both on their bookings, but you still file a quarterly city report (a zero report if needed) and pay both taxes yourself on direct bookings.
Austin changed its short-term rental rules several times in 2025 and 2026. Licenses now last two years, platforms collect the city's hotel tax, and since Jul 1, 2026 the city can ask platforms to remove unlicensed listings. This page covers what the City of Austin, the Texas Comptroller and the platforms say, for stays of less than 30 days.
Checked on Nov 4, 2026. Open the official links before you act, because these rules have moved quickly. This is not legal or tax advice; confirm your situation with the city, the Comptroller or a CPA.
Do you need a permit or registration
Yes, if the home is inside city jurisdiction. The city's short-term rental page (opens in a new tab) says:
- All STR owners and operators in the City of Austin must be licensed.
- Homes in the limited purpose jurisdiction need a license but don't pay city hotel tax.
- Homes in the extraterritorial jurisdiction (ETJ) need neither a city license nor local hotel tax. Check your address on the city's jurisdiction map.
License types. The city lists four applications (Type 1, Type 2 Residential, Type 2 Commercial and Type 3) but doesn't define them on the page. Call Licensing Intake at 512-974-9144 or email STRlicensing@austintexas.gov to confirm yours.
Where to apply. Online through an Austin Finance Online (AFO) (opens in a new tab) account, in person by appointment at the Permitting and Development Center (6310 Wilhelmina Delco Drive), or by mail. The city says an AFO tax account is required for anyone who owns, operates or takes payment for an STR in the full purpose jurisdiction.
What you submit:
- A copy of the front of your driver's license or government ID
- Proof of tenancy, if you're a tenant operating with your landlord's permission
- A notarized agent authorization form if the applicant isn't the owner
- Local contact details if you don't live in the Austin metro area
As of October 2025, the city no longer asks for proof of insurance or a certificate of occupancy. The page doesn't mention an inspection. Partial applications are not processed.
Fees and timing:
| Item | Fee | Notes |
|---|---|---|
| New license | $736.60 | $642.00 license plus $94.60 notification |
| Renewal | $369.60 | $275.00 renewal plus $94.60 notification |
| Term | Two years | Renew up to 60 days before expiry |
The notification fee pays for the city to mail your local contact's details to every property within 100 feet, now at each renewal. New single-family applications take 6 to 8 weeks and multifamily 8 to 10 weeks, per the city. If a license has been expired 30 days or more, you reapply as new. Licenses can't be transferred.
Local contact. If you don't live in the metro area, your contact must be in Travis, Williamson, Hays, Bastrop or Caldwell County. They must respond within two hours of being told about an emergency, any time of day. Report changes in writing within three business days.
Occupancy and sales taxes
| Tax | Who levies it | Rate |
|---|---|---|
| City hotel occupancy tax (9% occupancy plus 2% venue project tax) | City of Austin | 11% |
| State hotel occupancy tax | State of Texas | 6% |
Combined: 11% + 6% = 17%.
- City rate. Austin's hotel occupancy tax page (opens in a new tab) gives 11%, made up of 9% occupancy tax and a 2% venue project tax. The city's older HOT FAQ page (opens in a new tab) still says 9% (7% plus 2%). Airbnb's Texas article also lists Austin at 11%. Treat 11% as current, and confirm with Austin Financial Services at hotels@austintexas.gov if you file direct bookings.
- State rate. The Texas Comptroller (opens in a new tab) sets 6% of the room price for rooms costing $15 or more a day, and says homeowners who rent out a house or rooms must collect it like a hotel.
- County. Neither Airbnb's Texas article nor Vrbo's list shows a Travis County hotel tax. If your home is outside city limits, confirm county obligations with Travis County.
What Airbnb and Vrbo collect for you there
Airbnb. Airbnb's Texas tax article (opens in a new tab) says it collects and remits, for reservations of 29 nights or fewer, on the listing price including any cleaning fee:
- Texas state hotel occupancy tax at 6%
- Austin hotel occupancy tax at 11%
It says hosts must assess all other tax obligations.
Vrbo. Vrbo's US tax list (states N to Z) (opens in a new tab) shows it collects and remits Texas state hotel occupancy tax (since Apr 1, 2019) and City of Austin hotel occupancy tax (since Apr 1, 2025), for stays under 30 nights. It lists no rates.
City rule behind this. Austin says platforms that book STRs and take payment have had to collect and remit city hotel tax for operators since Apr 1, 2025.
What stays your job:
- City report. You still file a quarterly report with Austin, even if you only use platforms. You report how much tax each platform collected for you. With no rentals, you file a zero report.
- Direct bookings. Collect the 11% city tax and the 6% state tax yourself and remit both.
- State account. The Comptroller's Airbnb FAQ (opens in a new tab) says not to report Airbnb receipts (bookings since May 1, 2017) on your state return, because Airbnb reports them. If all your bookings are on Airbnb, you may close your state account. If you keep it open, you must file zero reports or face a $50 non-filer penalty. The FAQ covers only Airbnb, so ask the Comptroller how to report Vrbo-collected receipts.
- Renewal check. The city's license application page reminds renewing operators that quarterly hotel tax reports are still required. Keep copies, and confirm with Licensing Intake what it checks at renewal.
Filing and registering for the taxes you must file yourself
City of Austin hotel tax
- Portal. Austin Finance Online, hotel account section (opens in a new tab).
- Frequency. Quarterly. Due Apr 30, Jul 31, Oct 31 and Jan 31 for the quarters ending Mar 31, Jun 30, Sep 30 and Dec 31. Weekend and holiday due dates move to the next business day.
- Penalties. The city charges 5% of the tax for a late, false or unpaid report, another 5% on the 61st day late, and 10% a year interest from the 61st day.
Texas state hotel tax
- Portal. Comptroller Webfile, using the Texas Hotel Occupancy Tax Report (Form 12-100).
- Frequency. Monthly, or quarterly if you qualify. The Comptroller's page doesn't state the test, so ask when you register. Returns are due the 20th of the month after the period ends.
- Penalties and discount. $50 for each late report, 5% for paying 1 to 30 days late and 10% after that. You can take a 1% discount for filing and paying on time, though the Comptroller says it doesn't apply to Airbnb rentals.
- Help. The state tax assistance line is 1-800-252-1385.
Other local rules
Density limits. From the city's STR page:
- Single-family sites can have up to two STR units. The page says additional STRs must be at least 1,000 feet apart.
- Multifamily sites can have the greater of one unit or 10% of units as STRs.
- Mixed-use sites (four or more homes plus at least one commercial use) can have the greater of one unit or 25%.
Zoning. In February 2025, the city council made STRs an accessory use in all residential zoning districts, as long as the operator holds a valid license.
Noise (city code 4-23-34). No sound equipment above 75 decibels at the property line from 10 am to 10 pm. No sound audible past the property line from 10 pm to 10 am. No noise audible to an adjacent home or business from 10:30 pm to 7 am. A noise monitor helps you catch problems early.
Guest information packet. Post it in a common area. It must include:
- Your local contact's name and number
- Noise rules and parking restrictions
- The trash collection schedule
- Burn ban and water restriction information
- Applicable ADA requirements
The house manual builder and house rules sign can hold most of this.
Occupancy and parking. The city pages don't state an occupancy limit or a parking count. Parking rules must go in the guest packet. Confirm the specifics with Licensing Intake.
Platform listings. Since Jul 1, 2026, platforms must have a license display field, and the city can ask them to remove unlicensed listings.
Complaints. Neighbors report through Austin 3-1-1. The city says operators must respond promptly to complaints and fix repeated violations. The page doesn't list fine amounts.
Where to check for changes
- City of Austin short-term rentals (opens in a new tab) (recent ordinance dates are listed on this page)
- Apply for an STR license (opens in a new tab)
- Austin hotel occupancy taxes (opens in a new tab)
- Texas Comptroller hotel occupancy tax (opens in a new tab) and its Airbnb FAQ (opens in a new tab)
- Airbnb Texas taxes (opens in a new tab) and Vrbo tax list (opens in a new tab)
For federal income tax on the rent, see short-term rental taxes for US hosts. The Airbnb fee calculator shows what a stay pays you after fees.
See your payout
Enter your nightly rate and cleaning fee. See what you keep after Airbnb's fee.
See what a stay pays after feesFrequently asked questions
How much is an Austin short-term rental license?
$736.60 for a new license ($642.00 plus a $94.60 neighbor notification fee) and $369.60 to renew. A license lasts two years.
What is the hotel tax on an Austin short-term rental?
17% combined: the city's 11% (9% occupancy plus 2% venue tax) and the state's 6%. Airbnb and Vrbo collect both on their bookings.
Do I file a city hotel tax report if Airbnb collects it?
Yes. Austin requires a quarterly report from every operator that shows what each platform collected, and a zero report if you had no rentals.
Do I need insurance to get an Austin STR license?
Not anymore. The city says proof of insurance and a certificate of occupancy are no longer required for new applications or renewals as of October 2025. Your own coverage is still your call; see short-term rental insurance basics.
Does my local contact have to live in Austin?
Only if you don't live in the Austin metro area yourself. Then your contact must be in Travis, Williamson, Hays, Bastrop or Caldwell County and respond within two hours of an emergency call.
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