Austin vs Palm Springs
Texas Legal but Limited | California Legal but Limited
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Austin, Texas | Palm Springs, California |
|---|---|---|
| Legality Status | Legal but Limited | Legal but Limited |
| Permit Fee | $450/year (Type 2); $50/year (Type 1 homestead) | $1,072/year Vacation Rental Certificate; $642/year Junior Certificate |
| Tax Rate | 15% Hotel Occupancy Tax (9% city + 6% state) | 12.5% combined (11.5% TOT + 1% TBID) |
| Annual Day Limit | No limit | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | No — host must remit | Yes |
| Max Fine Example | $500–$2,000/violation; license revocation possible | $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension |
| Verdict | Both cities have comparable STR regulatory environments. | |
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
Palm Springs, California
Status Legal but Limited
Permit Fee $1,072/year Vacation Rental Certificate; $642/year Junior Certificate
Tax Rate 12.5% combined (11.5% TOT + 1% TBID)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension
Both cities have comparable STR regulatory environments.
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 →Palm Springs Overview
Limited to 26 rental contracts per year (28 nights or shorter each). Neighborhood density cap of 20% — multiple neighborhoods already at capacity. One permit per owner; occupancy based on bedroom count. $500,000 liability insurance required.
Full Palm Springs guide →Frequently Asked Questions
Is it easier to Airbnb in Austin or Palm Springs?
Austin is classified as "Legal but Limited" while Palm Springs is "Legal but Limited." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $1,072/year Vacation Rental Certificate; $642/year Junior Certificate in Palm Springs.
Which city has higher STR taxes — Austin or Palm Springs?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Palm Springs charges 12.5% combined (11.5% TOT + 1% TBID). 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. Palm Springs: $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension.