Airbnb Taxes by State in 2023

Airbnb has revolutionized the travel industry, offering travelers a unique opportunity to stay in private residences around the world. For many Airbnb hosts, it is also a lucrative source of income. However, one aspect of Airbnb hosting that can be confusing and overwhelming is navigating the various state taxes that apply to short-term rentals. In this article, we will explore the taxes that apply to Airbnb rentals in each state and provide some tips for hosts to ensure they comply with their tax obligations.

Alabama

Alabama levies a state lodging tax of 4%, as well as local lodging taxes that vary by city and county.

Alaska

In Alaska, there is no state lodging tax, but some cities have their own lodging taxes.

Arizona

Arizona has a state transaction privilege tax (TPT) of 5.6% that applies to short-term rentals. In addition, some cities have their own taxes, which can bring the total tax rate to over 15%.

Arkansas

Arkansas has a state lodging tax of 6.5%, as well as local lodging taxes that vary by city and county.

California

In California, hosts are required to collect a state transient occupancy tax (TOT) of 12.5%, as well as any local taxes that apply. Local tax rates vary widely and can range from 8% to over 16%.

Colorado

Colorado has a state sales tax of 2.9%, as well as a state lodger’s tax of 2.9%. Local taxes also apply, and rates vary by city and county.

Connecticut

Connecticut levies a state occupancy tax of 15%, as well as local taxes that can bring the total tax rate to over 16%.

Delaware

In Delaware, there is no state lodging tax, but some cities have their own lodging taxes.

Florida

Florida has a state sales tax of 6%, as well as local taxes that vary by city and county. In addition, some counties have a tourist development tax of up to 6%.

Georgia

Georgia has a state lodging tax of 5%, as well as local taxes that vary by city and county.

Hawaii

In Hawaii, hosts are required to collect a state transient accommodations tax (TAT) of 10.25%, as well as a general excise tax (GET) of 4.5%. Some cities also have their own taxes.

Idaho

Idaho has a state sales tax of 6%, as well as a state travel and convention tax of 2%. Local taxes also apply, and rates vary by city and county.

Illinois

Illinois has a state lodging tax of 6%, as well as local taxes that can bring the total tax rate to over 17%.

Indiana

Indiana has a state lodging tax of 7%, as well as local taxes that vary by city and county.

Iowa

Iowa has a state lodging tax of 5%, as well as local taxes that vary by city and county.

Kansas

In Kansas, there is no state lodging tax, but some cities have their own lodging taxes.

Kentucky

Kentucky has a state lodging tax of 1%, as well as local taxes that can bring the total tax rate to over 8%.

Louisiana

Louisiana has a state lodging tax of 5%, as well as local taxes that vary by city and parish.

Maine

Maine has a state lodging tax of 9%, as well as local taxes that can bring the total tax rate to over 12%.

Maryland

Maryland has a state sales tax of 6%, as well as a state lodging tax of up to 6%. Some cities also have their own taxes.

Massachusetts

In Massachusetts, hosts are required to collect a state room occupancy tax of 5.7%, as well as local taxes that can bring the total tax rate to over 14%.

Michigan

Michigan has a state use tax of 6%, as well as local taxes that vary by city and county.

Minnesota

In Minnesota, hosts are required to collect a state lodging tax of 7.375%, as well as local taxes that can bring the total tax rate to over 14%.

Mississippi

Mississippi has a state lodging tax of 2%, as well as local taxes that can bring the total tax rate to over 8%.

Missouri

Missouri has a state sales tax of 4.225%, as well as local taxes that can bring the total tax rate to over 11%.

Montana

In Montana, hosts are required to collect a state lodging tax of 4%, as well as local taxes that vary by city and county.

Nebraska

Nebraska has a state lodging tax of 5.5%, as well as local taxes that vary by city and county.

Nevada

In Nevada, hosts are required to collect a state lodging tax of 13.38%, as well as local taxes that can bring the total tax rate to over 14%.

New Hampshire

In New Hampshire, there is no state lodging tax, but some cities have their own lodging taxes.

New Jersey

New Jersey has a state sales tax of 6.625%, as well as a state occupancy fee of 6%. Some cities also have their own taxes.

New Mexico

New Mexico has a state gross receipts tax of 5.125%, as well as local taxes that can bring the total tax rate to over 8%.

New York

In New York, hosts are required to collect a state sales tax of 4%, as well as a state occupancy tax that varies by county. In addition, some cities have their own taxes, which can bring the total tax rate to over 14%.

North Carolina

North Carolina has a state sales tax of 4.75%, as well as local taxes that can bring the total tax rate to over 13%.

North Dakota

North Dakota has a state lodging tax of 5%, as well as local taxes that vary by city and county.

Ohio

Ohio has a state sales tax of 5.75%, as well as local taxes that can bring the total tax rate to over 11%.

Oklahoma

Oklahoma has a state lodging tax of 5%, as well as local taxes that can bring the total tax rate to over 11%.

Oregon

In Oregon, there is no state lodging tax, but some cities have their own lodging taxes.

Pennsylvania

Pennsylvania has a state sales tax of 6%, as well as a state occupancy tax of up to 5%. Some cities also have their own taxes.

Rhode Island

Rhode Island has a state lodging tax of 7%, as well as local taxes that can bring the total tax rate to over 13%.

South Carolina

South Carolina has a state sales tax of 6%, as well as local taxes that can bring the total tax rate to over 12%.

South Dakota

South Dakota has a state sales tax of 4.5%, as well as local taxes that can bring the total tax rate to over 10%.

Tennessee

Tennessee has a state sales tax of 7%, as well as local taxes that can bring the total tax rate to over 17%.

Texas

Texas has a state occupancy tax of 6%, as well as local taxes that can bring the total tax rate to over 17%.

Utah

Utah has a state sales tax of 4.85%, as well as a state transient room tax of up to 4.25%. Local taxes also apply.

Vermont

In Vermont, hosts are required to collect a state rooms and meals tax of 9%, as well as local taxes that can bring the total tax rate to over 10%.

Virginia

Virginia has a state sales tax of 5.3%, as well as local taxes that can bring the total tax rate to over 10%.

Washington

In Washington, hosts are required to collect a state lodging tax of up to 10.1%, as well as local taxes that can bring the total tax rate to over 17%.

West Virginia

West Virginia has a state sales tax of 6%, as well as local taxes that can bring the total tax rate to over 7%.

Wisconsin

Wisconsin has a state sales tax of 5%, as well as a state room tax of up to 5.5%. Local taxes also apply.

Wyoming

In Wyoming, hosts are required to collect a state lodging tax of 4%, as well as local taxes that can bring the total tax rate to over 10%.

Conclusion

Airbnb taxes by state can be confusing, as each state has its own tax laws and rates. Hosts should be aware of the tax laws in their state and ensure they are collecting and remitting the correct amount of taxes to avoid penalties and fines. Additionally, guests should be aware that they may be charged additional taxes on their Airbnb stays, and should factor this into their travel budgets. As Airbnb continues to grow in popularity, it is likely that more states will implement lodging taxes or increase their tax rates, making it even more important for hosts and guests to stay informed about their state’s tax laws.