States With the Lowest Property Tax Rates for Short-Term Rentals
Summary
This article discusses states with the lowest property tax rates for short-term rentals and emphasizes that focusing solely on property taxes can be misleading. Hosts should consider the overall tax burden, including lodging and sales taxes, and utilize tools like iGMS for comprehensive financial tracking to make informed investment decisions.
Key Insights
- •Short-term rental owners also have to think about lodging taxes, sales taxes, state income tax, and local rules set by city governments. Low property taxes don't always mean the lowest overall tax burden.
- •By 2026, short-term rental hosts in Hawaii can face a combined lodging tax burden of nearly 19% on booking revenue.
- •Property tax rates vary significantly by state, and choosing one of the states with the lowest property tax rates can mean keeping more money in your pocket every single year.
Action Items
- ✓Understand the full tax picture, including lodging taxes, sales taxes, and state income tax, when evaluating potential investment locations.Effort: mediumImpact: high
- ✓Research local rules and regulations including short-term rental limits, zoning restrictions, and licensing requirements.Effort: mediumImpact: high
Tools & Resources
- →iGMS: Successful STR investors look beyond property taxes alone and use tools like iGMS to track tax obligations, income, and performance across multiple properties and locations.
Common Mistakes
- ⚠Relying solely on low property tax rates without considering the total tax burden.
- ⚠First-time investors often get caught out when not accounting for lodging taxes, sales taxes, local tax rates, and business licensing fees.
More from Regulations & Compliance
The Green Bay Common Council will consider changes to its short-term rental ordinance. This could involve new regulations or revisions to existing rules. Hosts in Green Bay should stay informed about potential updates and how they might impact their operations.
Local commissioners denied a short-term rental application, suggesting potential regulatory hurdles for new STR operations. This indicates increasing scrutiny on STRs within this locality. Hosts should be aware of potential local restrictions and permitting requirements before investing in or launching short-term rentals.
The Green Bay Plan Commission is updating its short-term rental ordinance. Details are not given, but this news signals potential changes for hosts in the area. Hosts should stay informed about the new regulations to ensure compliance and avoid penalties.
Curated by Learn STR by GoStudioM