Austin vs Key West

Texas Legal but Limited | Florida 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
Key West, Florida
Status Restricted
Permit Fee $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee
Tax Rate 12.5% combined (5% county tourist dev. + 7.5% state sales)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $5,000/violation and 60 days imprisonment; each day is separate

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 →

Key West Overview

Moratorium on new transient rental licenses — only grandfathered properties may operate STRs under 28 days. Existing licenses are property-specific and command $400K+ on the secondary market. Florida DBPR state license also required.

Full Key West guide →

Frequently Asked Questions

Is it easier to Airbnb in Austin or Key West?
Austin is classified as "Legal but Limited" while Key West is "Restricted." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee in Key West.
Which city has higher STR taxes — Austin or Key West?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Key West charges 12.5% combined (5% county tourist dev. + 7.5% state sales). 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. Key West: Up to $5,000/violation and 60 days imprisonment; each day is separate.