Massachusetts Short-Term Rental Rules

Overview

Massachusetts takes a strict approach to short-term rental regulation — expect real permit requirements and real enforcement, not just rules on paper. Massachusetts does not preempt local rules, so a city or county here can pass its own STR ban or restrictions on top of anything the state requires — always check local ordinances, not just state law. A statewide STR license is required before you can legally list. The average occupancy tax here, 14.45%, runs well above the roughly 10% national average. Massachusetts requires STR operators to register with the state and carry liability insurance. Boston has strict limits and a permit system. Cape Cod communities have enacted additional restrictions. High effective tax rate including state, local, and community impact fees.

Key Facts

Tax Registration

What "the Platform Collects Tax for You" Actually Means

Airbnb and VRBO automatically collect and remit state and sometimes county-level lodging tax in most markets — but "most" is doing a lot of work in that sentence. City-level occupancy tax, local tourism assessments, and short-term rental registration fees are very often left to the host to file separately, and the platforms will tell you exactly that in their tax settings if you look. Don't assume you're covered just because a line item shows up as "taxes" on the guest's receipt — confirm with your state or city's department of revenue which taxes the platform actually remits on your behalf versus which ones remain your responsibility to register and file.