Austin vs Denver

Texas Legal but Limited | Colorado Legal with Permit

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
Denver, Colorado
Status Legal with Permit
Permit Fee $100 license fee
Tax Rate 10.75% Lodger's Tax (combined city/county/state)
Day Limit No limit
Renewal Every 2 years
Platform Tax Yes
Max Fine $999/day for unlicensed operation

Denver has more favorable STR regulations overall.

Permits & Licensing

Austin charges $450/year (Type 2); $50/year (Type 1 homestead) for STR licensing, while Denver charges $100 license fee. Austin renewal is annual, and Denver renewal is every 2 years. Overall, Denver has a more permissive regulatory environment (Legal with Permit) compared to Austin (Legal but Limited).

Tax Obligations

In Austin, hosts pay 15% Hotel Occupancy Tax (9% city + 6% state). In Denver, hosts pay 10.75% Lodger's Tax (combined city/county/state). A key difference: platforms like Airbnb automatically collect taxes in Denver, but hosts in Austin must collect and remit taxes themselves — a significant operational burden.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Austin face penalties including $500–$2,000/violation; license revocation possible. In Denver, violations can result in $999/day for unlicensed operation. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

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.

Contact: Austin Code Department — 3-1-1 or (512) 974-2000

Full Austin guide →

Denver Overview

Only primary residences may be used as STRs. Hosts must obtain a Short-Term Rental license. No cap on rental days. Accessory dwelling units on the same lot are also eligible.

Contact: Denver Excise & Licenses — (720) 913-1311

Full Denver guide →

Frequently Asked Questions

Is it easier to Airbnb in Austin or Denver?
Austin is classified as "Legal but Limited" while Denver is "Legal with Permit." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $100 license fee in Denver. Overall, Denver has a more host-friendly regulatory environment.
Which city has higher STR taxes — Austin or Denver?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Denver charges 10.75% Lodger's Tax (combined city/county/state). Notably, Denver benefits from automatic platform tax collection, while hosts in Austin must handle taxes themselves.
Which city has stricter fines for illegal short-term rentals?
Austin: $500–$2,000/violation; license revocation possible. Denver: $999/day for unlicensed operation. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Austin and Denver have day limits for Airbnb?
Austin has no annual day limit. Denver has no annual day limit.
Which city is better for first-time Airbnb hosts — Austin or Denver?
For new hosts, consider the total cost of entry: Austin charges $450/year (Type 2); $50/year (Type 1 homestead) for permits with 15% Hotel Occupancy Tax (9% city + 6% state) in taxes. Denver charges $100 license fee with 10.75% Lodger's Tax (combined city/county/state). Automatic tax collection in Denver makes compliance easier for beginners.