Short-Term Rental Tax Calculator & Lookup

Understanding Short-Term Rental Taxes

Short-term rental (STR) taxes are levied on property rentals that last less than a certain number of consecutive days -- typically 28 or 30 days, though this varies by state. These taxes apply to platforms like Airbnb, Vrbo, Booking.com, and direct bookings. As an STR host, you are responsible for understanding and complying with all applicable tax obligations, even if a platform collects some taxes on your behalf.

STR tax rates consist of multiple layers: state sales tax, state lodging/occupancy tax, county taxes, and city/municipal taxes. The total effective rate can range from under 5% in low-tax states like Montana or Wyoming to over 20% in high-tax cities like San Antonio, TX or Maui, HI. The national average state-level rate is approximately 7.3%, but local taxes often double or triple this amount.

Platform Tax Collection

49 out of 51 jurisdictions have agreements with major platforms like Airbnb and Vrbo to collect and remit state-level taxes automatically. However, platform collection does not always cover local taxes. In many cities, hosts are still responsible for collecting and remitting county and municipal lodging taxes directly. Always verify with both your platform and local tax authority to understand exactly what is being collected on your behalf.

Registration and Compliance

50 states require STR operators to register or obtain a license. Requirements typically include: a state sales tax permit, a lodging tax registration, and a local STR permit or business license. Some cities impose additional requirements such as safety inspections, occupancy limits, noise regulations, and caps on the total number of STRs allowed. Failure to register and collect applicable taxes can result in penalties, back-tax assessments, and fines.

Tax Deductions for STR Hosts

While short-term rental taxes are an unavoidable cost, hosts can offset their tax burden through a range of deductions available to rental property operators. The IRS allows STR hosts to deduct ordinary and necessary expenses related to the rental activity, which can significantly reduce taxable income. Common deductions include:

• Mortgage interest — The portion of mortgage interest attributable to the rental use of the property is deductible on Schedule E.
• Property taxes — Real estate taxes on your rental property are deductible as a rental expense, separate from the $10,000 SALT cap on personal taxes. Your state may offer a homestead exemption that reduces property tax on your primary residence.
• Insurance premiums — Homeowners insurance, landlord insurance, and STR-specific liability policies are fully deductible. Estimate your home insurance costs to budget accurately.
• Cleaning and maintenance — Turnover cleaning, lawn care, pool maintenance, pest control, and routine repairs are deductible in the year incurred.
• Platform fees — Host service fees charged by Airbnb (typically 3%), Vrbo, and other platforms are deductible business expenses.
• Supplies and furnishings — Linens, toiletries, kitchenware, and furniture under $2,500 can be expensed under the de minimis safe harbor rule.
• Utilities — Electricity, gas, water, internet, cable, and trash removal during rental periods are deductible.
• Depreciation — The cost of the building (not land) can be depreciated over 27.5 years for residential rental property, providing a substantial non-cash deduction.
• Professional services — Accounting, legal, and property management fees are fully deductible.

Hosts who rent their property for fewer than 15 days per year may qualify for the "Masters exemption" (IRC Section 280A(g)), which allows them to exclude all rental income from taxation entirely. For properties rented more than 14 days, all income must be reported on Schedule E, but all associated expenses become deductible. Consult a tax professional to maximize your deductions.

Tax Filing Tips for STR Hosts

Short-term rental income is reported on IRS Schedule E (Supplemental Income and Loss) for most hosts. If you provide substantial services to guests (daily cleaning, meals, guided tours), the income may be classified as business income on Schedule C, which is subject to self-employment tax of 15.3%. Most Airbnb and Vrbo hosts report on Schedule E.

Key filing deadlines to remember: estimated tax payments are due quarterly (April 15, June 15, September 15, and January 15). If you expect to owe more than $1,000 in taxes, you should make quarterly estimated payments to avoid underpayment penalties. Platforms issue a 1099-K if your gross earnings exceed $600 in a calendar year. Keep detailed records of all rental income, expenses, and nights rented vs. personal use days to ensure accurate tax filing.