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Texas Airbnb Taxes: Complete 2026 Guide for Short-Term Rental Hosts

If you own a short-term rental in Texas, understanding the tax landscape is non-negotiable. From the Texas Hotel Occupancy Tax (HOT) to property taxes, local surcharges, and federal income tax, a 2026 guide will help you understand your obligations, plan for payments, and avoid penalties.

RedAwning has been managing rental properties across Texas for years and regularly updates this guide to reflect the latest regulatory requirements for short-term rentals.

Texas Short-Term Rental Taxes at a Glance

As of April 2026, here's the complete breakdown of Texas STR taxes:

• Texas Hotel Occupancy Tax: 6% of rental price (statewide)
• Local Hotel Occupancy Tax Surcharges: 1% to 9% depending on city/county
• Sales Tax: Texas does not impose general sales tax on short-term rentals
• Property Tax: Owner responsible for property tax classification (may increase if used as STR)
• Short-term Rental Tax: Specific city-level STR fees (varies by market)
• Federal Income Tax: 100% of rental income must be reported on Schedule C (sole proprietorship) or Schedule E (if structured as entity)