Austin, Texas

Legal but Limited

Updated February 2026

Disclaimer: General information only — not legal advice. Verify with your local government.

Key Facts

Permit Fee $450/year (Type 2); $50/year (Type 1 homestead)
Tax Rate 15% Hotel Occupancy Tax (9% city + 6% state)
Day Limit No annual limit
Renewal Annual
Platform Tax Collection No — host must remit
Max Fine $500–$2,000/violation; license revocation possible

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.

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Frequently Asked Questions

Is Airbnb legal in Austin, Texas?
Short-term rentals in Austin are currently classified as "Legal but Limited." 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.
How much is the STR permit in Austin?
The permit/license fee in Austin is $450/year (Type 2); $50/year (Type 1 homestead). Renewal is annual.
What taxes do Airbnb hosts pay in Austin?
Hosts in Austin are subject to 15% Hotel Occupancy Tax (9% city + 6% state). Hosts are responsible for collecting and remitting taxes themselves.
What are the fines for illegal short-term rentals in Austin?
Penalties in Austin can include $500–$2,000/violation; license revocation possible. Always ensure you have the required permits before listing.

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Official Resources

Agency: Austin Code Department — 3-1-1 or (512) 974-2000 | Visit Official Government Page →

Download Compliance Checklist

Get a printable PDF checklist with all the requirements for Austin.