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Massachusetts Vacation Rental Tax Calculator
Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Massachusetts vacation rental property.
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Enter your details below to see your personalized vacation rental tax breakdown.
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What Taxes Apply to Massachusetts Short-Term Rentals?
Massachusetts STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.
Sales Tax
Massachusetts applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 14.45%. Cities may add local sales tax on top.
Occupancy / Transient Lodging Tax
Massachusetts's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 14.45% in Boston and 11.7% in Cape Cod. This includes state, county, and city-level components.
Tourism / Convention Center Tax
Some Massachusetts cities levy additional tourism, convention center, or special district taxes that add 1–3% to your total rate. In Boston, the combined rate of 14.45% already includes these surcharges.
Federal & State Income Tax
Net rental profit is subject to both federal income tax (10–37% in 2026) and Massachusetts's state income tax at 5%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.
Property Tax
Massachusetts's average effective property tax rate is 1.23%. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.
Does Airbnb Collect and Remit Taxes in Massachusetts?
Airbnb has agreements to collect and remit taxes in Massachusetts — but coverage is not always complete.
- Airbnb collects Massachusetts's state-level lodging tax in most jurisdictions.
- In Boston and Cape Cod: Airbnb may or may not collect all county/city taxes.
- Rural areas: You're often fully responsible for all local tax collection.
- Even where Airbnb collects, you may owe additional local levies or special district taxes.
Bottom line: Never assume Airbnb handles all your Massachusetts tax obligations. Verify with your local tax authority.
Do You Need a Tax Permit in Massachusetts?
Yes. Massachusetts has significant STR regulation. Most jurisdictions require permits and licenses before you can operate.
- State sales tax permit / seller's permit
- City or county business license
- Short-term rental operating permit
- Lodging tax registration certificate
- Zoning compliance certificate
- Fire safety inspection certificate
Consequences of non-compliance
5–25% penalties on unpaid taxes in Massachusetts
Revocation of rental permit
Liens on your property
Short-Term Rental Taxes in Massachusetts
Key tax facts every vacation rental host in Massachusetts should know.
State room excise: 5.7%
Local option: up to 6% additional
Convention center surcharge in Boston: 2.75%
State income tax: 5% flat
Property tax rate: ~1.23%
Lodging Tax Rates by City in Massachusetts
Combined lodging/occupancy tax rates for major vacation rental markets in Massachusetts.
5.7% state + 6% city + 2.75% convention center
5.7% state + 6% local
5.7% state + 6% local
Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.
FAQs About Massachusetts Vacation Rental Taxes
Common questions about short-term rental taxes, permits, and compliance in Massachusetts.
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