Austin vs Santa Fe

Texas Legal but Limited | New Mexico Legal but Limited

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
Santa Fe, New Mexico
Status Legal but Limited
Permit Fee $100 one-time application + $325/year permit and business license
Tax Rate ~8.44% gross receipts tax + 7.1% lodgers' tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $500/day for operating without permit

Both cities have comparable STR regulatory environments.

Permits & Licensing

Austin charges $450/year (Type 2); $50/year (Type 1 homestead) for STR licensing, while Santa Fe charges $100 one-time application + $325/year permit and business license. Austin renewal is annual, and Santa Fe renewal is annual. Both cities share a similar regulatory stance, classified as "Legal but Limited."

Tax Obligations

In Austin, hosts pay 15% Hotel Occupancy Tax (9% city + 6% state). In Santa Fe, hosts pay ~8.44% gross receipts tax + 7.1% lodgers' tax. A key difference: platforms like Airbnb automatically collect taxes in Santa Fe, 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 Santa Fe, violations can result in Up to $500/day for operating without permit. 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 →

Santa Fe Overview

Residential zone STRs capped at 1,000 citywide permits; one per person; must be 50+ feet from another STR. Rentals limited to once per 7-day period (except Nov 15–Jan 15). Local operator must respond within 1 hour.

Contact: Santa Fe Land Use Dept. — (505) 955-6639

Full Santa Fe guide →

Frequently Asked Questions

Is it easier to Airbnb in Austin or Santa Fe?
Austin is classified as "Legal but Limited" while Santa Fe is "Legal but Limited." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $100 one-time application + $325/year permit and business license in Santa Fe. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Austin or Santa Fe?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Santa Fe charges ~8.44% gross receipts tax + 7.1% lodgers' tax. Notably, Santa Fe 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. Santa Fe: Up to $500/day for operating without permit. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Austin and Santa Fe have day limits for Airbnb?
Austin has no annual day limit. Santa Fe has no annual day limit.
Which city is better for first-time Airbnb hosts — Austin or Santa Fe?
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. Santa Fe charges $100 one-time application + $325/year permit and business license with ~8.44% gross receipts tax + 7.1% lodgers' tax. Automatic tax collection in Santa Fe makes compliance easier for beginners.