Thinking about hosting on Airbnb or running a vacation rental in Texas? This guide is your all-in-one roadmap to doing it legally and profitably. In this detailed guide, we will break down everything you need to know about short-term rental (STR) laws in Texas, starting with how the state defines STRs under H.B. 2551, covering any residential property (from single-family homes to condos, co-ops, and even time-shares) rented for less than 30 days at a time.

But here’s where it gets interesting, while Texas provides the statewide framework, local cities and counties have the freedom to set their own rules. That means compliance doesn’t stop at the state level, and hosts must also navigate local zoning, permits, and tax requirements.

We’ll make this easy, we have answered the most common questions Texas hosts ask, from understanding which taxes apply to your property, to how to register for state hotel occupancy taxes (HOT), and more. So stay glued, and by the end, you’ll know exactly what Texas expects from short-term rental hosts and how to meet those requirements step by step.

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Yes. Texas defines a short-term vacation rental as any residential property or an accessory unit, such as a house, condo, or timeshare rented for less than 30 consecutive days. This broad definition, set out in H.B. 2551, forms the foundation of Texas STR law. While the definition applies statewide, each city and county may add its own requirements, including registration, occupancy limits, or inspection rules.

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According to law, a short-term rental (STR) is a temporary occupancy of 30 days or fewer.

If you rent a home, condo, or room in Texas for less than 30 days, you must collect and remit the 6% State Hotel Occupancy Tax (HOT) plus any local hotel occupancy taxes. Some hosts may also owe sales and use tax depending on the services offered. Read up on what to collect, how to register, when to file, and where to confirm the rules. The Texas Comptroller – Hotel Occupancy Tax explains the tax that applies to various jurisdictions.

• State HOT: 6% on all short stays.
• Local HOT: Cities and some counties add 1–9%, bringing total rates to 11–15% in many areas.
• Sales/Use Tax: Up to 8.25% if your rental includes taxable items or services.
  

Anyone renting out a short-term accommodation including owners, hosts, property managers, or business entities must register with the Texas Comptroller for the HOT unless a marketplace platform (like Airbnb or Vrbo) collects and remits the taxes for you.

How to Register

1. Apply online for a Hotel Occupancy Tax Account at the Comptroller’s website - Texas Comptroller Tax Registration‍
2. Complete Form AP-201 if you cannot register online.
3. Keep copies of all guest receipts and exemptions (for stays over 30 days).
   

HOT Filing and Deadlines

• Monthly filers: Due by the 20th of the next month.
• Quarterly filers: Due by the 20th of the month after each quarter.
• Example: Taxes for March stays are due April 20.

Penalties for Late Payment

• $50 late filing fee per report.
• 5% penalty if filed 1–30 days late.
• 10% if over 30 days late, plus interest after 60 days.

The local lodging tax rates vary by city of popula jurisidictions in the state.

• Austin: 11% total (6% state + 5% local).
• Galveston: 15% total (6% state + 9% local).
• Fredericksburg: 13% total (6% state + 7% local).
• Houston: Up to 17% including venue taxes.

NOTE: Platforms like Airbnb and Vrbo collect and remit the state 6% HOT but may not collect local HOT everywhere. Always confirm which taxes your platform remits as you may still owe the local portion.

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