Apollo AdvisingTexas short-term rental taxes and city rules
Texas short-term rental taxes and rules: state and local hotel occupancy tax, the 30-day exemption, HOA restrictions, and the Dallas-Fort Worth city rules to check before you list.
Short answer. Texas charges a 6% state hotel occupancy tax on stays under 30 consecutive days, and most cities add their own, so combined rates of 13% or more are common in larger cities. Booking platforms collect some of these taxes in some places, but you are responsible for confirming the rest are registered and paid. Before buying, check city zoning rules, any HOA restrictions, and your insurance.
Hotel occupancy tax
- State: 6% on stays of less than 30 consecutive days.
- Local: most cities, and some counties, add their own hotel occupancy tax, and some add venue taxes on top. Combined rates in large Texas cities are commonly 13% or more.
- Who collects: Airbnb and similar platforms collect and pay certain state and local taxes for you in many places, but not always every local tax. Check what your platform remits for your address, and register with the Texas Comptroller and your city for anything it does not.
- The 30-day line: guests who stay 30 consecutive days or more are generally exempt, which is one reason furnished medium-term rentals are popular in Texas.
The tax is usually added to the guest's bill, so it does not come out of your pocket directly, but it raises the total price guests see and that affects occupancy. Our rental strategy calculator includes it.
City rules around Dallas-Fort Worth
Short-term rental rules in North Texas vary city by city, and several are in active litigation. A few examples, current as of this update:
- Dallas adopted zoning rules in 2023 that would bar most short-term rentals in single-family neighborhoods. A court order has blocked enforcement while a lawsuit proceeds, and the city has asked the Texas Supreme Court to review the case. The order does not override HOA rules, deed restrictions, or hotel tax obligations.
- Fort Worth limits short-term rentals by zoning, and a court has upheld its restrictions in residential areas.
- Grapevine prohibits most short-term rentals in residential areas.
- Arlington limits new short-term rentals to designated areas.
- Many other cities require a permit or registration, local tax filing, or occupancy limits.
Rules and court rulings change. Before you buy for short-term use, confirm the current ordinance and zoning for the exact address with the city, in writing if possible.
HOAs and deed restrictions
Texas courts have held that a deed restriction requiring residential use does not, by itself, ban short-term rentals. But an HOA can adopt or amend restrictions that expressly prohibit or limit them. Read the current deed restrictions, bylaws, and rules, and ask the HOA whether any amendment is pending.
Insurance and lending
- A standard homeowner or landlord policy may exclude short-term rental activity. Get a policy written for it.
- Some mortgages restrict short-term rental use. Read your loan documents, especially on a second-home loan.
If short-term is not allowed
A furnished medium-term rental for traveling nurses, insurance placements, and corporate stays of 30 days or more is often permitted where short-term rentals are not, and it generally avoids hotel tax. Compare all three strategies in our side-by-side guide.
Where we fit
Denver has run short-term, medium-term, and long-term rentals in his own Texas portfolio. We build the numbers for your property under each strategy and list the specific rules to verify before you commit. Apollo Advising does not give legal advice; confirm zoning and HOA questions with a Texas real estate attorney.
Want this run on your property?
$199 per hour, billed in 15-minute increments, or $499 for a three-hour block. The first 30 minutes are free.
Free guide: what would your Airbnb earn as a 30-day rental?
The five-step method from Denver's paid client reports, with a worked example and a fill-in worksheet. Covers cleaning fees, platform fees, breakeven rent, and the slow-month hybrid.
Go deeper
Short-term vs medium-term vs long-term calculatorCompare what the same property keeps under each rental strategy, with your own numbers.Airbnb, medium-term, or long-term: comparing what you keepA side-by-side of costs, time, and rules, with a worked example on the same house.Protesting property taxes on a Texas rentalThe protest deadline, the evidence that works, and what changes when the 20% cap on rentals ends after 2026.Self-manage or hire a property manager?What managers charge, what you get for it, and how to price your own time honestly.This page is general education, not legal, tax, investment, insurance, or lending advice. See our disclosures.