Austin vs Dallas

Texas Legal but Limited | Texas Restricted

Disclaimer: General information only — not legal advice. Verify with your local government.

Austin, Texas
Status Legal but Limited
Permit Fee $450/year (Type 2); $50/year (Type 1 homestead)
Tax Rate 15% Hotel Occupancy Tax (9% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $500–$2,000/violation; license revocation possible
Dallas, Texas
Status Restricted
Permit Fee $285 registration fee
Tax Rate 13% Hotel Occupancy Tax (7% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $500–$2,000/violation

Austin has more favorable STR regulations overall.

Austin Overview

Type 1 (owner-occupied) is allowed citywide. Type 2 (non-owner-occupied) licenses are no longer issued in residential areas — existing Type 2 licenses expire April 2027.

Full Austin guide →

Dallas Overview

Dallas banned non-owner-occupied STRs in residential single-family zoning districts effective April 2023. Owner-occupied or 'hosted' stays and multifamily/commercial zoning remain allowed with registration.

Full Dallas guide →

Frequently Asked Questions

Is it easier to Airbnb in Austin or Dallas?
Austin is classified as "Legal but Limited" while Dallas is "Restricted." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $285 registration fee in Dallas.
Which city has higher STR taxes — Austin or Dallas?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Dallas charges 13% Hotel Occupancy Tax (7% city + 6% state). Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Austin: $500–$2,000/violation; license revocation possible. Dallas: $500–$2,000/violation.