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?

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.

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.
Benchmarks
MetricValue
Typical occupancy tax6% – 17%
IRS 14-day rule≤14 nights/yr = tax free
Schedule E (most hosts)vs. Schedule C (services > 7 days)

Step-by-step playbook

  1. Step 1
    Step 1

    Confirm whether your platform auto-collects local occupancy tax — coverage varies by city.

  2. Step 2
    Step 2

    Register for any tax the platform does not collect (state, city, or special district).

  3. Step 3
    Step 3

    Track every expense: cleaning, supplies, software, photography, depreciation.

  4. Step 4
    Step 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

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, “”.