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Top TLDR

Houston Airbnb hosts must collect 17% total hotel occupancy tax on short-term rentals under 30 days: 6% Texas state tax, 7% City of Houston tax, 2% Harris County tax, and 2% Harris County-Houston Sports Authority tax. Airbnb and Vrbo automatically collect and remit these taxes for platform bookings, but hosts using other platforms or direct bookings must register separately and file quarterly reports. Verify your tax collection setup immediately to avoid penalties and compliance issues.

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Understanding Hotel Occupancy Tax in Houston

Hotel occupancy tax (HOT) is a consumption tax that applies to all short-term accommodations rented for fewer than 30 consecutive days. In Texas, this tax applies to hotels, motels, bed and breakfasts, condominiums, apartments, and houses—including your Airbnb.

The tax is collected from your guests as part of their total booking cost. You're not paying these taxes out of your rental income; instead, you're acting as a collection agent for various taxing authorities. The guest pays the tax, you collect it, and you remit it to the appropriate government entities.

For Houston hosts, hotel occupancy tax comes from four different sources, creating a total tax rate of 17% on short-term rental stays.

The Four Taxes Houston Airbnb Hosts Must Collect

Understanding each component of Houston's hotel occupancy tax structure helps you ensure complete compliance and avoid penalties.

Texas State Hotel Occupancy Tax: 6%

The Texas state hotel occupancy tax is 6% of the total rental charge, including cleaning fees and other charges related to the accommodation. This tax applies to all properties rented for fewer than 30 consecutive days where the nightly rate is $15 or more.

The Texas Comptroller's Office collects this tax. Since May 1, 2017, Airbnb has automatically collected and remitted the 6% state tax on behalf of hosts for all bookings made through their platform. Vrbo also collects this tax automatically.

If you exclusively list on Airbnb or Vrbo and they handle all your bookings, you don't need to register for a state hotel occupancy tax account or file state tax returns. The platforms manage everything for you.

However, if you take direct bookings, list on other platforms that don't collect Texas hotel tax, or use booking channels outside of Airbnb and Vrbo, you're responsible for collecting this 6% tax yourself and remitting it to the Texas Comptroller's Office.

City of Houston Hotel Occupancy Tax: 7%

Houston imposes a 7% local hotel occupancy tax on all short-term rentals within city limits. This tax is collected by Houston First Corporation, which manages tourism and convention activities for the city.

Since July 1, 2019, Airbnb has automatically collected and remitted Houston's 7% municipal hotel occupancy tax on behalf of hosts. Vrbo began collecting this tax on January 1, 2020.

If all your bookings come through Airbnb or Vrbo, you don't need to register with Houston First Corporation or file city tax reports. However, if you use other booking platforms or accept direct reservations, you must register with Houston First and file quarterly reports.

Quarterly deadlines for Houston city tax are the last day of the month following each quarter:

• Q1 (January-March): Due April 30
• Q2 (April-June): Due July 31
• Q3 (July-September): Due October 31
• Q4 (October-December): Due January 31

Harris County Hotel Occupancy Tax: 2%

Harris County imposes a 2% hotel occupancy tax on properties located within Houston city limits. Properties in unincorporated areas of Harris County pay a higher 7% county tax, but since we're focusing on Houston proper, the 2% rate applies to most hosts.

This tax is collected by the Harris County Tax Assessor-Collector's Office. Currently, Airbnb collects this 2% Harris County tax automatically for bookings on their platform.

Like the other taxes, if you use booking channels outside of Airbnb and Vrbo, you'll need to register with the Harris County Tax Office and file quarterly reports directly with them.

Harris County-Houston Sports Authority Tax: 2%

The final component is a 2% tax collected by Harris County for the Houston Sports Authority. This tax funds sports facilities and related tourism promotion throughout the region.

Airbnb collects this 2% Sports Authority tax along with the other Harris County tax. The same quarterly filing schedule applies if you're handling these taxes yourself for non-platform bookings.

When you add everything together—6% state + 7% city + 2% county + 2% sports authority—Houston Airbnb guests pay a total of 17% in hotel occupancy taxes on their short-term rental stays.

How Platform Collection Works

Understanding how Airbnb and Vrbo handle tax collection is crucial for Houston hosts.

What Airbnb Collects Automatically

For bookings made through Airbnb's platform, the company automatically collects all four Houston hotel occupancy taxes:

• 6% Texas State Hotel Occupancy Tax
• 7% City of Houston Hotel Occupancy Tax
• 2% Harris County Hotel Occupancy Tax
• 2% Harris County-Houston Sports Authority Tax

Airbnb adds these taxes to the guest's total bill automatically. The guest pays the full amount including taxes, Airbnb collects the funds, and then remits the appropriate taxes directly to each taxing authority on your behalf.

From the host's perspective, you receive your rental income minus Airbnb's service fee, and the taxes are handled completely behind the scenes. You don't manually collect or remit anything for Airbnb bookings.

What Vrbo Collects Automatically

Vrbo (formerly HomeAway) also automatically collects Houston's hotel occupancy taxes:

• 6% Texas State Hotel Occupancy Tax (since May 1, 2017)
• 7% City of Houston Hotel Occupancy Tax (since January 1, 2020)
• 2% Harris County Hotel Occupancy Tax
• 2% Harris County-Houston Sports Authority Tax

Like Airbnb, Vrbo displays the tax breakdown to guests during booking, collects the full amount, and remits taxes to the appropriate authorities quarterly.

Important Limitations of Platform Collection

While platform collection simplifies tax compliance, there are critical limitations to understand:

Other Platforms May Not Collect All Taxes: Booking.com, direct booking websites, and smaller platforms may not have agreements to collect Houston hotel occupancy taxes. Even if they collect some taxes, they might not collect all four Houston taxes.

Direct Bookings Are Your Responsibility: If guests book directly through email, phone, or your own website, you're completely responsible for collecting and remitting all applicable taxes.

Mixed Booking Sources Require Tracking: Many Houston hosts use multiple platforms to maximize occupancy. If you list on Airbnb, Vrbo, and direct booking channels, you need to carefully track which bookings have taxes handled by platforms and which require manual collection and remittance.

Past Bookings May Still Be Due: If you had bookings before platforms began collecting taxes (before July 1, 2019 for Houston city tax on Airbnb), you're still responsible for those back taxes.

When You Must Collect Taxes Manually

Several scenarios require Houston hosts to handle hotel occupancy tax collection and remittance themselves.

Using Non-Collecting Platforms

Not all booking platforms have agreements to collect Houston hotel occupancy taxes. If you list on platforms besides Airbnb and Vrbo, verify whether they collect the full 17% Houston tax breakdown.

Many platforms only collect the 6% Texas state tax, or they collect nothing at all. You're legally responsible for ensuring all applicable taxes are collected and remitted, regardless of what your booking platform does or doesn't do.

Accepting Direct Reservations

Direct bookings—whether through your own website, email inquiries, phone calls, or repeat guests contacting you directly—require you to collect all applicable hotel occupancy taxes manually.

When setting your pricing for direct bookings, make sure you're adding the 17% tax on top of your nightly rate and cleaning fees. This tax is owed by the guest, not paid from your rental income.

Managing Multiple Booking Channels

If you're listed on Airbnb, your own website, and other platforms, you need a system to track which bookings have taxes handled automatically and which require manual collection.

Working with a professional Airbnb management company in Houston can eliminate this complexity. Expert property managers handle all booking channels, ensure complete tax compliance across platforms, and maintain detailed records that satisfy all taxing authorities.

How to Register for Houston Hotel Occupancy Taxes

If you need to collect and remit taxes manually for any bookings, proper registration is essential.

Registering for Texas State Hotel Occupancy Tax

To collect the 6% Texas state hotel occupancy tax, you must register with the Texas Comptroller's Office. You can complete registration online through the Comptroller's website.

During registration, you'll receive a Texas Taxpayer Number and complete Form AP-102 (Hotel Occupancy Tax Questionnaire). This registration gives you the authority to collect state hotel tax and establishes your filing requirements.

If you only use Airbnb or Vrbo and they handle all your bookings, you can close your state tax account to avoid $50 non-filer penalties for zero-receipt reports. However, if you close your accounts and then take even one direct booking, you'll be operating illegally without collecting required taxes.

Registering for City of Houston Hotel Occupancy Tax

Houston's 7% local hotel occupancy tax is managed by Houston First Corporation. Registration involves completing their hotel occupancy tax registration form and establishing your account for quarterly reporting.

Houston First provides online filing capabilities through their tax portal, making quarterly reporting straightforward once you're registered.

Contact Houston First Corporation at their office at 701 Avenida de las Americas, Suite 200, Houston, TX 77010, or visit their website for current registration procedures.

Registering for Harris County Hotel Occupancy Taxes

Both the 2% Harris County Hotel Occupancy Tax and the 2% Sports Authority Tax are collected by the Harris County Tax Assessor-Collector's Office through a single registration.

You'll need to complete the Hotel Occupancy Tax Registration for Online Payments and Filings form. Once registered, you gain access to the Harris County Tax Office Hotel/Motel Occupancy Tax portal for online filing.

The Harris County Tax Office can be reached at 713-274-8151 for hotel occupancy tax questions.

Filing Requirements and Deadlines

Understanding when and how to file your hotel occupancy tax reports is critical for avoiding penalties.

Texas State Tax Filing

Texas state hotel occupancy tax is filed either monthly or quarterly depending on your tax volume. Most small-scale Airbnb hosts file quarterly.

Quarterly filing deadlines are the 20th of the month following each quarter:

• Q1 (January-March): Due April 20
• Q2 (April-June): Due July 20
• Q3 (July-September): Due October 20
• Q4 (October-December): Due January 20

You'll file electronically through the Texas Comptroller's online system using your taxpayer number. The system calculates your tax liability based on your reported gross receipts.

Houston City Tax Filing

Houston city hotel occupancy tax is filed quarterly with Houston First Corporation. Reports and payments are due the last day of the month following each quarter:

• Q1 (January-March): Due April 30
• Q2 (April-June): Due July 31
• Q3 (July-September): Due October 31
• Q4 (October-December): Due January 31

You'll complete the City of Houston Hotel Occupancy Tax Report form and submit it either online through Houston First's portal or by mail with your payment.

Harris County Tax Filing

Harris County requires quarterly filing for both the 2% Hotel Occupancy Tax and the 2% Sports Authority Tax. Both taxes are filed together through the Harris County system.

Use the same quarterly deadlines as Houston city tax (last day of the month following each quarter). The Harris County Tax Office offers both online filing and mail-in options.

Record Keeping Requirements

Maintain detailed records of all short-term rental transactions, including:

• Guest names and contact information
• Rental dates and number of nights
• Gross rental charges (nightly rate + cleaning fees + other charges)
• Taxes collected from each guest
• Booking platform or source
• Receipts and documentation

Keep these records for at least four years. In case of an audit, you'll need to provide transaction histories and demonstrate that all taxes were properly collected and remitted.

Calculating Taxable Receipts

Understanding what's included in your taxable base ensures you're collecting the correct amount.

What's Included in Taxable Receipts

Hotel occupancy tax applies to the gross rental charge, which includes:

• Nightly rental rate
• Cleaning fees
• Pet fees
• Extra guest fees
• Late check-in fees
• Any other charges related to occupying the property

The tax applies to the total amount the guest pays to stay at your property, not just the base nightly rate.

What's Excluded from Taxable Receipts

Certain charges are not subject to hotel occupancy tax:

• Damage deposits (if fully refundable and not used to pay for accommodation)
• Separate charges for consumables the guest purchases (like firewood or groceries you provide separately)
• Long-term stays of 30 consecutive days or more

If a guest stays 30 or more consecutive days, no hotel occupancy tax applies to that reservation. However, this is rare for Houston Airbnbs since most bookings are short-term.

Example Calculation

Here's how the 17% Houston hotel occupancy tax breaks down on a typical booking:

Booking Details:

• 3 nights at $150/night = $450
• Cleaning fee = $75
• Total rental charge = $525

Tax Breakdown:

• Texas State (6%): $525 × 0.06 = $31.50
• Houston City (7%): $525 × 0.07 = $36.75
• Harris County (2%): $525 × 0.02 = $10.50
• Sports Authority (2%): $525 × 0.02 = $10.50
• Total Tax = $89.25

Guest's Total Payment: $525 + $89.25 = $614.25

Your rental income is $525 (minus platform fees if applicable). The $89.25 in taxes passes through to the appropriate taxing authorities.

Penalties for Non-Compliance

Failing to properly collect or remit Houston hotel occupancy taxes can result in significant penalties.

Late Filing Penalties

Texas imposes penalties for late tax filings:

• 1-30 days late: 5% penalty on tax due
• More than 30 days late: 10% penalty on tax due
• Failure to file when no tax is due: $50 penalty per report

Houston city and Harris County have similar penalty structures. Even if you owe zero tax for a quarter, you must file a report showing zero receipts or face penalties.

Interest on Unpaid Taxes

Unpaid hotel occupancy taxes accrue interest from the due date:

• Texas State and Harris County: 12% annual interest rate (accrues after 60 days)
• Houston City: Interest rates set by Houston First Corporation

Interest compounds quickly, so even small amounts of unpaid tax can grow substantially over time.

Severe Consequences

Beyond financial penalties, non-compliance can lead to:

• Registration revocation under Houston's new short-term rental ordinance
• Liens placed on your property by taxing authorities
• Legal action to collect unpaid taxes
• Platform listing removal if your city registration is revoked
• Asset seizure in extreme cases of tax debt

These consequences can effectively end your short-term rental business, making tax compliance essential.

Federal Income Tax Considerations

Beyond hotel occupancy taxes collected from guests, Houston Airbnb hosts must report rental income on their federal tax returns.

Reporting Rental Income

All short-term rental income must be reported to the IRS. How you report this income depends on factors like how many days you rent, the services you provide, and whether you materially participate in the rental activity.

Most Houston Airbnb hosts report rental income on Schedule E (Supplemental Income and Loss). However, if you provide substantial services like daily cleaning, meals, or concierge services, the IRS may classify your operation as a business rather than a rental, requiring Schedule C reporting.

Tax Deductible Expenses

Operating a compliant Houston Airbnb involves many deductible expenses:

• Houston STR registration fees ($308.10 annually)
• Short-term rental insurance premiums
• Professional cleaning and maintenance services
• Repairs and upkeep
• Utilities (electricity, water, gas, internet, cable)
• Supplies and amenities for guests
• Professional photography for listings
• Property management fees
• Advertising and marketing costs
• Legal and professional fees related to your rental
• Depreciation on the property and furnishings

Keep meticulous records of all expenses. These deductions significantly reduce your taxable income and improve your overall return on investment.

Working with Tax Professionals

Given the complexity of short-term rental taxation—including hotel occupancy taxes, income taxes, and deductions—many Houston hosts benefit from working with a tax professional who understands the vacation rental industry.

A qualified accountant or tax preparer can help you maximize legitimate deductions, ensure proper income reporting, navigate the differences between rental activity and business activity, and represent you in case of an IRS audit.

Common Tax Compliance Mistakes

Avoid these frequent errors that trip up Houston Airbnb hosts.

Assuming Platforms Handle Everything

The most common mistake is believing that because Airbnb or Vrbo collects taxes, you're completely covered. This is only true if 100% of your bookings come through these platforms.

Even one direct booking or reservation through another platform creates tax obligations you must fulfill manually. Many hosts discover compliance gaps only when facing penalties or audits.

Missing Quarterly Deadlines

With three different taxing authorities and quarterly filing requirements, deadlines can sneak up quickly. Missing a single quarterly filing—even when you owe zero tax—can trigger penalties.

Set calendar reminders for all quarterly deadlines, or better yet, work with a property management professional who handles tax compliance as part of their service.

Failing to Register Despite Platform Collection

Some hosts believe that because Airbnb collects taxes, they never need to register with taxing authorities. While you may not need active tax accounts if platforms handle 100% of your bookings, registration may still be required under Houston's new STR ordinance for proof of tax compliance.

Verify current registration requirements even if platforms are collecting your taxes.

Not Tracking Mixed Booking Sources

Hosts using multiple platforms often lose track of which bookings had taxes collected automatically versus which require manual reporting. This leads to either under-reporting (creating tax liability) or double-reporting (creating confusion with tax authorities).

Maintain a detailed spreadsheet tracking every booking, the source platform, and whether taxes were automatically collected or manually handled.

Neglecting Record Keeping

Inadequate record keeping creates problems during audits, makes quarterly filings difficult, and prevents you from maximizing tax deductions.

Document every transaction, save all receipts, and maintain organized records for at least four years.

How Professional Property Management Simplifies Tax Compliance

Navigating Houston's complex hotel occupancy tax structure while managing your rental property requires significant time and expertise.

Complete Tax Administration

Professional Airbnb property management companies handle every aspect of tax compliance for Houston hosts. This includes collecting taxes from all booking sources, registering with all applicable taxing authorities, filing quarterly reports accurately and on time, maintaining detailed transaction records, and providing documentation for your STR registration.

By outsourcing tax compliance to experts, you eliminate the risk of penalties, missed deadlines, and registration complications.

Multi-Platform Management

Professional managers optimize your property across multiple booking channels while maintaining perfect tax compliance for each source. They track which bookings have platform-collected taxes and which require manual handling, ensuring nothing falls through the cracks.

This multi-channel approach maximizes your occupancy and revenue while keeping you completely compliant with all tax obligations.

Financial Reporting and Documentation

Property management companies provide comprehensive financial reports showing all income, expenses, and taxes. These reports make federal tax filing straightforward and provide the documentation you need for Houston's STR registration.

Clear financial records also help you understand your true profitability after all taxes and expenses.

Staying Current with Regulation Changes

Tax rates, filing requirements, and regulations can change. Professional property managers monitor these changes and adjust their processes to maintain compliance without requiring any action from you.

You gain peace of mind knowing experts are handling the details while you enjoy the financial benefits of your Houston Airbnb investment.

Taking Action on Tax Compliance

Understanding Houston's hotel occupancy tax requirements is the first step—taking action to ensure compliance is what protects your investment.

Immediate Steps for Current Hosts

If you're currently hosting in Houston:

1. Verify which of your booking sources automatically collect all four Houston taxes
2. Register with any taxing authorities for booking sources that don't collect automatically
3. Review your past bookings to identify any potential gaps in tax collection
4. Set up quarterly filing reminders for all applicable deadlines
5. Organize your financial records and transaction documentation
6. Gather tax documentation needed for your Houston STR registration

For New Hosts Getting Started

If you're launching a Houston Airbnb:

1. Register with the Texas Comptroller, Houston First Corporation, and Harris County Tax Office before accepting your first booking
2. Understand which platforms collect taxes automatically and which don't
3. Set up a dedicated system for tracking all bookings and tax collections
4. Budget for the time required to file quarterly reports (or budget for professional management)
5. Connect with a tax professional who understands short-term rentals
6. Consider professional property management to handle compliance from day one

Working with Sora Stays

At Sora Stays, we specialize in comprehensive Airbnb property management that includes complete tax compliance. Our team handles registration with all taxing authorities, collects taxes from all booking sources, files all quarterly reports accurately and on time, maintains detailed records, and provides documentation for your Houston STR registration.

We take the complexity out of Houston's tax requirements while maximizing your rental income through optimized pricing, professional guest services, and exceptional property care. Whether you're overwhelmed by tax compliance or simply prefer a hands-off investment approach, we're here to help.

Schedule a consultation to learn how we can handle every aspect of your Houston Airbnb operation, from guest communications to tax compliance, while delivering the returns you expect from your investment.

Bottom TLDR

Houston Airbnb hosts must collect 17% total hotel occupancy tax: 6% state, 7% city, 2% county, and 2% sports authority tax on stays under 30 days. Airbnb and Vrbo automatically handle tax collection and remittance for platform bookings, while direct bookings and other platforms require hosts to register separately and file quarterly with the Texas Comptroller, Houston First Corporation, and Harris County. Verify your complete tax compliance now to avoid penalties and protect your Houston short-term rental registration.

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