Short-Term Rental Taxes
Short-term rental hosts owe income tax on rental profit and, in most jurisdictions, occupancy/lodging tax on every guest-paid dollar. Airbnb and Vrbo collect and remit the second in many — but not all — markets. This is the StayFlow playbook used by thousands of short-term rental hosts in 2026.
What is short-term rental taxes?
Key takeaways
- Typical occupancy tax: 6% – 17%
- IRS 14-day rule: ≤14 nights/yr = tax free
- Schedule E (most hosts): vs. Schedule C (services > 7 days)
- Assuming Airbnb collects all your local taxes — they don't in most US cities.
- Skipping depreciation; it's the single largest deduction for most hosts.
| Metric | Value |
|---|---|
| Typical occupancy tax | 6% – 17% |
| IRS 14-day rule | ≤14 nights/yr = tax free |
| Schedule E (most hosts) | vs. Schedule C (services > 7 days) |
Step-by-step playbook
- Step 1Step 1
Confirm whether your platform auto-collects local occupancy tax — coverage varies by city.
- Step 2Step 2
Register for any tax the platform does not collect (state, city, or special district).
- Step 3Step 3
Track every expense: cleaning, supplies, software, photography, depreciation.
- Step 4Step 4
File Schedule E unless you provide hotel-like services, then Schedule C.
Common mistakes to avoid
- Assuming Airbnb collects all your local taxes — they don't in most US cities.
- Skipping depreciation; it's the single largest deduction for most hosts.
- Missing the 14-day rule when renting an event-week home.
Drill deeper
- Austin
- Nashville
- Miami
- New York
- Los Angeles
- San Francisco
- Chicago
- Seattle
- Denver
- Asheville
- Charleston
- San Diego
- New Orleans
- Portland
- Lake Tahoe
- Park City
- Aspen
- Joshua Tree
- Savannah
- Boston
- Portland
- Atlanta
- Phoenix
- Scottsdale
- Sedona
- Tucson
- San Diego
- San Jose
- Sacramento
- Palm Springs
- Lake Tahoe
- Big Sur
- Carmel
- Napa
- Sonoma
- Santa Barbara
- Mammoth Lakes
- Boise
- Coeur d'Alene
- Sun Valley
- Cabins
- Beach houses
- Condos
- Villas
- Tiny homes
- Lofts
- Treehouses
- A-frames
- Yurts
- Lakehouses
- Ski chalets
- Mansions
- Studio
- 1 bedroom
- 2 bedrooms
- 3 bedrooms
- 4 bedrooms
- 5 bedrooms
- 6 bedrooms
- 7+ bedrooms
Frequently asked questions
- Do I have to pay taxes on Airbnb income?
- Yes, unless your property was rented for 14 or fewer nights in the calendar year (the IRS 'Augusta rule'). Otherwise it's reportable on Schedule E.
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Reviewed by StayFlow Editorial · Last updated 2026-06-07 · Cite as: StayFlow, “”.