Austin vs Sacramento

Texas Legal but Limited | California 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
Sacramento, California
Status Legal with Permit
Permit Fee $230 initial application; $160 annual renewal; $54 annual Business Operations Tax
Tax Rate 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Contact city for current details

Sacramento has more favorable STR regulations overall.

Permits & Licensing

Austin charges $450/year (Type 2); $50/year (Type 1 homestead) for STR licensing, while Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax. Austin renewal is annual, and Sacramento renewal is annual. Overall, Sacramento 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 Sacramento, hosts pay 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. A key difference: platforms like Airbnb automatically collect taxes in Sacramento, but hosts in Austin must collect and remit taxes themselves — a significant operational burden.

Day Limits & Restrictions

Sacramento imposes a 90-night annual limit, while Austin has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

Hosts operating without a permit in Austin face penalties including $500–$2,000/violation; license revocation possible. In Sacramento, violations can result in Contact city for current details. 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 →

Sacramento Overview

Host must reside in the property at least 184 nights/year (primary residence requirement); non-primary-residence rentals capped at 90 days/year. Maximum 6 guests at any time.

Contact: Revenue Division, Finance Department — (916) 808-8500

Full Sacramento guide →

Frequently Asked Questions

Is it easier to Airbnb in Austin or Sacramento?
Austin is classified as "Legal but Limited" while Sacramento is "Legal with Permit." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $230 initial application; $160 annual renewal; $54 annual Business Operations Tax in Sacramento. Overall, Sacramento has a more host-friendly regulatory environment.
Which city has higher STR taxes — Austin or Sacramento?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Sacramento charges 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Notably, Sacramento 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. Sacramento: Contact city for current details. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Austin and Sacramento have day limits for Airbnb?
Austin has no annual day limit. Sacramento limits STRs to 90 nights per year.
Which city is better for first-time Airbnb hosts — Austin or Sacramento?
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. Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax with 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Automatic tax collection in Sacramento makes compliance easier for beginners.