Short-Term Rental Rules in Austin, TX (2026): Permits, Taxes and Limits
Short-term renting is allowed in Austin if you have a valid operating license. Hosts need to apply for licensing through the Austin Development Services and adhere to specific regulations regarding rental operations [1].
Do you need a permit or license?
All short-term rental (STR) owners in Austin must obtain a license [1]. Licenses are valid for two years as of October 2025 [1]. A Certificate of Occupancy and proof of insurance are not required [1]. Tenants may operate STRs if they have landlord permission [1].
Taxes
The City of Austin requires a Hotel Occupancy Tax (HOT) of 11%, which includes a 9% occupancy tax and an additional 2% venue project tax [2]. Platforms like Airbnb and VRBO must collect and remit this tax for STR owners [2]. STR owners must file a quarterly report with the City of Austin specifying the HOT collected [1].
Limits and restrictions
Single-family sites allow operation of up to two STR units, with additional units to be placed at least 1,000 feet apart [1]. In mixed-use sites, you can operate either one unit or 25% of your units [1]. Multi-family residential sites allow for one unit or 10% of your units [1]. STRs can be operated in all residential zoning districts with a valid license as of February 2025 [1].
Penalties
If any person fails to file a quarterly report or pay the full amount of the tax by the due date, a 5% penalty is assessed on the amount due [2]. An additional 5% penalty applies on the 61st day past the due date [2]. Delinquent taxes also incur a 10% per annum interest starting on the 61st day from the due date [2].
How to apply
Applications can be submitted online, in person, or by mail, and require documentation such as a copy of the owner's ID or proof of tenancy [1]. The application fee for a new license is $736.60, which includes a $642.00 license fee and a $94.60 notification fee [1].
At a glance
| Topic | What the rules say |
|---|---|
| License Validity | Licenses are valid for two years from October 2025 [1]. |
| Taxes | 11% city Hotel Occupancy Tax collected, platforms must remit [2]. |
| Tenant Operations | Allowed with landlord permission [1]. |
| Fees | $736.60 for a new license application [1]. |
| Multi-family STR | Operate one unit or 10% of units [1]. |
FAQ
Can tenants operate an STR in Austin?
Yes, tenants may operate STRs with their landlord's permission [1].
How often must I renew my STR license?
The license must be renewed every two years [1].
Where can I submit my STR license application?
Applications can be submitted online, in person, or by mail [1].
Running a rental in Austin
Permits, taxes and stays are easier to keep straight in one place. Rentology runs short, mid and long-term rentals in one system.
Sources
- Short-Term Rentals | Austin Development Services | AustinTexas.gov (official)
- Hotel Occupancy Taxes | Austin Financial Services | AustinTexas.gov (official)
Last checked: October 6, 2026. This page summarizes rules the city, county or state has published. It is not legal advice, and rules change: confirm with the city before you list a property.