Austin STR Rules
TX · Short-Term Rental Permit, Taxes & Requirements
Austin uses a Type 1 / Type 2 permit system. Type 1 (owner-occupied) are more widely permitted. Type 2 (non-owner-occupied) licenses in residential areas stopped being issued after 2016; existing licenses are non-transferable and dwindling.
Permit Requirements
Key Rules for Austin STR Hosts
- ✓Type 1: owner-occupied — permitted in most residential zones
- ✓Type 2: non-owner-occupied — no new licenses in residential zones since 2016
- ✓Existing Type 2 residential licenses are non-transferable
- ✓Commercial zones still permit Type 2 STRs
- ✓Annual license fee: $195 (Type 1) or $569 (Type 2)
- ✓Max occupancy: 2 adults per bedroom
- ✓City hotel occupancy tax must be collected and remitted
How to Get Started in Austin
- 1Determine if property is owner-occupied (Type 1) or not (Type 2)
- 2For Type 1, apply at austintexas.gov/department/short-term-rentals
- 3For Type 2 in commercial zone, apply directly to Development Services
- 4Submit site plan and safety documentation
- 5Pay annual license fee
- 6Register with Austin Finance for Hotel Occupancy Tax (HOT)
- 7Display license number on all listing platforms
Tax Breakdown
Estimated effective rate: ~15%
- •TX State Hotel Occupancy Tax: 6%
- •Austin Hotel Occupancy Tax: 9%
- •Total: ~15%
Note: Airbnb and VRBO typically collect and remit state and city taxes on behalf of hosts in these markets. Verify your platform's tax collection policy.
Enforcement Notes
Austin Development Services actively enforces STR rules. Type 2 (non-owner-occupied) licenses were banned in new residential areas in 2016 and existing licenses don't transfer to new owners. Enforcement includes nuisance complaints, noise violations, and occupancy caps.
Also check the TX state guide for state-level tax registration, HOA rules, and preemption status.
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