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.

Permits & Licensing

Austin charges $450/year (Type 2); $50/year (Type 1 homestead) for STR licensing, while Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee. Austin renewal is annual, and Key West renewal is annual. Overall, Austin has a more permissive regulatory environment (Legal but Limited) compared to Key West (Restricted).

Tax Obligations

In Austin, hosts pay 15% Hotel Occupancy Tax (9% city + 6% state). In Key West, hosts pay 12.5% combined (5% county tourist dev. + 7.5% state sales). A key difference: platforms like Airbnb automatically collect taxes in Key West, 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 Key West, violations can result in Up to $5,000/violation and 60 days imprisonment; each day is separate. 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 →

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.

Contact: Key West Licensing Division — (305) 809-3959

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. Overall, Austin has a more host-friendly regulatory environment.
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). Notably, Key West 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. Key West: Up to $5,000/violation and 60 days imprisonment; each day is separate. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Austin and Key West have day limits for Airbnb?
Austin has no annual day limit. Key West has no annual day limit.
Which city is better for first-time Airbnb hosts — Austin or Key West?
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. Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee with 12.5% combined (5% county tourist dev. + 7.5% state sales). Automatic tax collection in Key West makes compliance easier for beginners.