%20--%3e%3cg%3e%3cg%20id='Logotype'%3e%3cg%3e%3cpath%20fill='%23141313'%20d='M46.37,250.9L136.63,28.98H0v237.25C0,296.87,21.93,318.83,52.56,318.83v-.03h160.64v-154.45l-156.9,95.23c-5.8,3.71-12.82-2.05-9.94-8.68Z'/%3e%3cpath%20fill='%23141313'%20d='M347.35,104.3c-68.33,0-115.93,44.71-115.93,108.91s47.6,108.9,115.93,108.9,115.93-44.72,115.93-108.9-47.6-108.91-115.93-108.91ZM347.35,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M633.86,118.01c0,3.31-3.71,3.31-7.02,1.66-18.22-9.54-32.29-15.3-53-15.3-56.71,0-95.62,42.66-95.62,108.08s39.32,109.7,93.14,109.7v-.03c21.93,0,35.61-7.02,56.31-19.87,3.71-2.48,8.28-1.66,6.19,3.71l-5.36,12.85h86.51V28.98h-81.15v89.03ZM594.11,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1406.03,107.65l-23.58,112.61c-1.66,8.68-11.59,9.11-13.65-.4l-24.84-112.22h-94.79c-39.32,0-51.74-11.99-51.74-29.81s10.33-28.15,27.72-28.15c20.27,0,30.64,16.16,32.69,32.29h79.5C1325.35,29.38,1286.43,0,1230.52,0,1168.85,0,1130.32,36.04,1130.32,91.09v16.56h-44.71v67.07h44.71v144.08h81.15v-143.68h70.23l46.53,124.21c3.31,8.28,2.88,17.39-.4,26.1l-28.55,68.73h80.25l120.47-286.51h-93.97Z'/%3e%3cpath%20fill='%23141313'%20d='M886.41,117.98c0,3.31-3.71,3.31-7.02,1.66-19.87-9.94-34.35-15.3-54.65-15.3-60.45,0-93.97,49.29-93.97,107.65,0,64.59,37.26,98.54,87.77,98.54,23.19,0,40.57-7.02,62.1-19.47,5.37-3.31,9.51-.4,7.45,4.57-9.11,20.7-28.55,31.47-59.62,31.47h-83.2v67.07h98.5c72.04,0,123.78-47.63,123.78-114.67V107.65h-81.15v10.33ZM846.67,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1026.35,18.18c-26.1,0-44.71,16.16-44.71,39.35s18.61,39.35,44.71,39.35,44.72-16.16,44.72-39.35-18.62-39.35-44.72-39.35Z'/%3e%3crect%20fill='%23141313'%20x='985.78'%20y='107.65'%20width='81.15'%20height='211.15'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
What is Hotel Occupancy Tax (HOT)?
A Hotel Occupancy Tax (HOT), also known as a lodging tax or transient occupancy tax, is a specific tax levied on the rental of transient accommodations. These taxes are set by local or state jurisdictions and apply to stays in properties like hotels, motels, bed and breakfasts, and short-term vacation rentals.
The tax is typically calculated as a percentage of the gross rental revenue and is collected from the guest by the property owner or manager.
Join the Lodgify newsletter
How it works
First, the governing body—such as a city, county, or state—establishes an occupancy tax rate and the rules for its collection. The vacation rental host or property manager is then legally responsible for adding this tax to a guest's bill.
Once collected, these funds must be remitted to the appropriate tax authority on a regular schedule, which is often monthly or quarterly. While some online travel agencies (OTAs) may collect and remit these taxes on behalf of hosts in certain areas, the ultimate legal responsibility for compliance typically remains with the property owner.
To simplify this process, many hosts use property management software; for example, platforms like Lodgify can be configured to automatically add correct tax rates to direct bookings and generate reports for easy remittance.
Why it matters
For local governments, Hotel Occupancy Taxes are a crucial source of revenue, often dedicated to funding tourism marketing initiatives, convention centers, and local infrastructure projects. For vacation rental owners and managers, correctly calculating, collecting, and remitting these taxes is a fundamental aspect of legal compliance.
Failure to do so can result in significant penalties, fines, back taxes, and potential revocation of a license to operate. See the official website for current details.
Examples
- A host in Austin, Texas, is required to collect the 6% state HOT and an additional 11% city HOT from guests, totaling a 17% tax on the nightly rate and cleaning fee.
- A property manager in San Diego uses their property management system to automatically calculate and apply the 10.5% Transient Occupancy Tax to every invoice for direct bookings.
- An Airbnb host in a popular tourist destination verifies that while Airbnb collects and remits state and county taxes, the host is still personally responsible for filing and paying a separate 2% city-level lodging tax.
- A new host renting out a cabin learns they must register with their county tax collector's office and remit the local 4% bed tax quarterly, even for their single rental property.
Frequently asked questions
Who pays the Hotel Occupancy Tax?+
Is Hotel Occupancy Tax the same as sales tax?+
How do I find the correct HOT rate for my vacation rental?+
Do OTAs like Vrbo and Airbnb handle all my occupancy tax obligations?+
Related terms
Lodging Tax
A lodging tax is a tax levied by government authorities (such as city, county, or state) on the rental of short-term accommodations, including vacation…
Occupancy Tax
Occupancy tax is a tax levied on the rental of short-term accommodations, which hosts are legally required to collect from guests and remit to local or state…
Transient Occupancy Tax (TOT)
Transient Occupancy Tax (TOT) is a tax levied by local or state governments on the rental of short-term accommodations, such as vacation rentals, hotels, and…
City Tax
City tax is a locally imposed tax levied on guests staying in short-term accommodations, including vacation rentals, with the revenue typically used to fund…