Short-term rentals
Texas short-term rental rules by city
Texas has no single statewide short-term rental license. Instead, an owner of a vacation or nightly rental deals with three layers: state hotel occupancy tax, city rules that differ sharply from one city to the next, and the deed restrictions of the neighborhood. This guide explains each layer and summarizes how Austin, San Antonio, Houston and Dallas approach short-term rentals.
These rules move quickly. City ordinances on short-term rentals have been rewritten, challenged in court and phased in over the last few years. The city summaries below reflect each city's official pages as reviewed on the date at the foot of this page. Always check the city's current rules before you buy or list a property. This is not legal or tax advice.
Layer 1: state hotel occupancy tax
The Texas Tax Code treats a short-term rental as a "hotel" for hotel occupancy tax purposes. Chapter 156 defines a short-term rental as the rental of all or part of a residential property to a person who is not a permanent resident, and a permanent resident is someone with the right to use the room for at least 30 consecutive days, without an interruption in payment.
- State rate: 6% of the price paid for the room (Tax Code §156.052). The Comptroller applies it to rooms costing $15 or more a day.
- Who collects: the Comptroller's guidance names owners leasing their houses, property managers, and online travel and third-party rental companies among those who may be responsible. Confirm whether your platform collects state tax for your listing, and register with the Comptroller if you must collect.
- Reports: monthly, due by the 20th of the following month, or quarterly if the Comptroller allows.
- Local taxes: cities, counties and some special districts levy their own hotel taxes on top of the state rate, and they are often collected and reported separately.
Rentals of 30 days or more generally fall outside hotel tax and inside ordinary landlord-tenant law. See Texas landlord-tenant law basics.
Layer 2: city rules
| City | Core requirement | Notable points |
|---|---|---|
| Austin | Operating license for every short-term rental in the city's jurisdiction | Licenses are valid for two years (since October 2025). Platforms collect and remit the city's hotel tax (since April 1, 2025), and owners file a quarterly report. From July 1, 2026, platforms must display license numbers and remove unlicensed listings when the city asks. Limits apply to how many units one person may operate on single-family, multifamily and mixed-use sites. |
| San Antonio | Short-term rental permit | Type 1 for owner- or operator-occupied property; Type 2 for property that is not. Permits last three years and are not transferable. Density limits apply by blockface; beyond them, a special exception from the Board of Adjustment is needed. Operators report city and county hotel tax monthly, even when zero. |
| Houston | Annual certificate of registration under an ordinance effective January 1, 2026 | Covers rentals of less than 30 consecutive days. Registration asks for an emergency contact, completion of human trafficking awareness training and proof of owner authorization. Hosts give the registration number to platforms, and from January 1, 2027 the city will direct platforms to remove listings without one. |
| Dallas | 2023 ordinances, including limits on short-term rentals in single-family zoning | A court blocked enforcement in 2023, appellate courts upheld the injunction, and the city asked the Texas Supreme Court to intervene. Check the city's current position before relying on any rule. |
Other Texas cities and some counties have their own registration, zoning or hotel tax rules, and some have none beyond the state tax. Search the city's code and planning pages, not only its tax pages.
Layer 3: deed restrictions and HOAs
A city permit does not override private restrictions. Section 209.016 of the Property Code allows a property owners' association to adopt or enforce restrictions on occupancy or leasing, and San Antonio's city page notes that it does not enforce covenants and deed restrictions. In 2018 the Texas Supreme Court, in Tarr v. Timberwood Park Owners Association, read a restriction limiting property to "residential purposes" as not, by itself, barring short-term rentals, because guests who eat and sleep there use the home for a residential purpose. Associations can amend their documents to address short-term rentals directly, following the amendment procedure in those documents. Read the current, recorded restrictions and any amendments before you buy. The HOA guide covers how associations regulate leasing.
Before you buy a property for short-term rental use
- Confirm the jurisdiction. An address can sit in a city, its extraterritorial jurisdiction or an unincorporated county area, and the rules differ.
- Read the city's short-term rental ordinance and zoning rules, including density limits, occupancy limits, parking and registration requirements.
- Check whether a permit or license can transfer. San Antonio's permits, for example, cannot.
- Get the recorded deed restrictions and HOA rules, including recent amendments, and the HOA resale certificate.
- Price the taxes: state hotel tax plus local hotel taxes, and property tax on a property that will not have a homestead exemption.
- Talk to your insurer. Standard homeowner policies may not cover a business use.
- Talk to your lender. Some loan programs restrict short-term rental use.
Operating checklist
- City license, permit or registration number displayed wherever required.
- Comptroller hotel tax registration, if you must collect state tax.
- Local hotel tax registration and reports, including zero reports where required.
- Records of each stay: dates, amounts charged, taxes collected by you and by each platform.
- Emergency contact available as the city requires.
- Safety equipment and occupancy limits under local rules.
Common questions
Do Texas short-term rentals pay hotel tax?
Yes. State law treats a short-term rental as a hotel for hotel occupancy tax, at a state rate of 6%, plus any local hotel taxes. Stays of 30 or more consecutive days by a permanent resident are not subject to the state tax.
Does Airbnb collect Texas hotel tax for me?
Platforms collect some taxes in some places, and cities have their own arrangements. Austin, for example, requires platforms to collect and remit its hotel tax, while owners still file a quarterly report. Check each platform's tax pages and your city's rules rather than assuming.
Can my HOA ban short-term rentals?
Texas law allows associations to adopt and enforce leasing and occupancy restrictions in their dedicatory instruments. Whether a particular restriction applies depends on its wording and how it was adopted.
Is a short-term rental covered by Texas landlord-tenant law?
Some Property Code provisions expressly exclude short leases. For example, the flood disclosure required of landlords does not apply to leases shorter than 30 days (§92.0135). Other rules depend on the facts, so ask an attorney how your arrangement is classified.
Related guides
- Taxes on rental income in Texas
- Texas HOA rules for landlords
- Texas property taxes for rental owners
Official pages: Texas Comptroller, hotel occupancy tax, City of Austin, City of San Antonio and City of Houston.
Last reviewed 2026-09-17