Austin Short-Term Rental Regulations
| Permit | ✓ Required — Short-Term Rental Operator's License ($836.30) |
| Primary Residence | Not required |
| Annual Day Limit | No limit — less than 30 consecutive days |
| Tax Rate | 15% |
| Max Penalty | $500/day plus license revocation and 12-month ban for nuisance properties per violation + revocation risk |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Short-Term Rental Operator's License
| Fee | Amount |
|---|---|
| Initial cost | $836.30 |
| Renewal | $385.30 / 2 years |
This permit type does not require primary residence.
Application Process
Apply on form approved by director and pay fees ($836.30 new, $385.30 renewal). Must provide: certification of no outstanding code violations, contact info for operator and local contact, property address, self-certified safety checklist, platform names, proof of utility payment (for lessees), owner authorization. Notification sent to properties within 100 feet. Processing time: Type 1 & 2 (4-6 weeks), Type 3 (8-10 weeks). Operators can be tenants with landlord permission.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Texas State Hotel Occupancy Tax | 6% | State of Texas |
| City of Austin Hotel Occupancy Tax | 9% | City of Austin |
Combined rate: 15% of gross rental income.
Collection: Hotel owners, operators, managers, property management companies, and online travel platforms must collect and remit. Platforms must provide quarterly tax documentation to users. State filing through Webfile or TEXNET depending on volume.
Filing: Monthly (due 20th of following month) or quarterly if qualified
Rental Limits
Austin does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 30 consecutive days.
Occupancy & Density Limits
On a site with 3 or fewer housing units, an individual can operate up to 2 STRs. On sites with 4+ units and commercial use, the greater of 1 or 25% of units. On sites with 4+ units and no commercial use, the greater of 1 or 10%. If not renting entire unit, guest must have exclusive use of a bedroom and shared use of a full bathroom.
Zoning & Restrictions
STRs are permissible accessory uses across all residential zoning districts with valid licenses (as of February 2025). Individual operators may run up to 2 units at one location, plus additional properties at least 1,000 feet apart.
Insurance & Safety
Safety & Operating Requirements
- Self-certified safety checklist required with application. Fire extinguisher locations must be provided to each guest. A habitable housing unit is required. Third-party inspection may be required if prior violations exist.
Penalties for Non-Compliance
Up to $500 fine per day for each violation. Each day the violation continues is a separate offense. Culpable mental state is not required. License may be revoked for nuisance, failure to comply with compliance plan, or failure of local contact to respond within 2 hours. Director can issue delist notices to platforms for unlicensed STRs.
Platform Requirements
Platforms must require users to include license number in advertisements. Platforms must delist unlicensed STRs within 10 days of director's delist notice. Platforms must provide tax documentation to users quarterly. Platforms may not accept fees for bookings of unlicensed STRs.
Compliance Checklist
Follow these steps to legally operate a short-term rental in Austin:
- Meet safety requirements. Self-certified safety checklist required with application. Fire extinguisher locations must be provided to each guest. A habitable housing unit is required. Third-party inspection may be required if prior violations exist.
- Apply for Short-Term Rental Operator's License. Submit application + $836.30 fee.
- Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
- Display your permit number. Include your permit/license number in all listings and advertisements.
- Collect and remit taxes. 15% on all bookings.
- Renew every 2 years. $385.30 renewal fee.