Texas Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal income tax, and depreciation deductions for your Texas vacation rental property.

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Tax Types

What Taxes Apply to Texas Short-Term Rentals?

Texas 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

Texas applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 17%. Cities may add local sales tax on top.

Occupancy / Transient Lodging Tax

Texas's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 17% in Houston and 16.75% in San Antonio. This includes state, county, and city-level components.

Tourism / Convention Center Tax

While Texas doesn't have a prominent statewide tourism tax, some cities and resort areas may levy additional tourism development or marketing district assessments of 1–3%.

Federal Income Tax

Texas has no state income tax — a significant advantage for STR owners. Your net rental profit is only subject to federal income tax, reported on Schedule E (Form 1040). 2026 federal rates range from 10% to 37%.

Property Tax

Texas's average effective property tax rate is 1.8% — among the highest in the U.S.. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in Texas?

Airbnb has agreements to collect and remit taxes in Texas — but coverage is not always complete.

Airbnb collects Texas's state-level lodging tax in most jurisdictions.
In Houston and San Antonio: 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 Texas tax obligations. Verify with your local tax authority.

Compliance

Do You Need a Tax Permit in Texas?

Yes. Texas 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 Texas

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in Texas

Key tax facts every vacation rental host in Texas should know.

No state income tax

State hotel occupancy tax: 6%

City hotel taxes: 7–9%

Venue/convention taxes: 2%

Property tax rate: ~1.80% (among the highest)

City Breakdown

Lodging Tax Rates by City in Texas

Combined lodging/occupancy tax rates for major vacation rental markets in Texas.

CityCombined Rate

Houston

6% state + 7% city + 2% county + 2% venue

17%

San Antonio

6% state + 7% city + 1.75% county + 2% venue

16.75%

Austin

6% state + 7% city + 2% venue

15%

Dallas

6% state + 7% city + 2% venue

15%

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About Texas Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in Texas.

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