Austin has a strict regulatory environment for short-term rentals, distinguishing between owner-occupied (Type 1) and non-owner-occupied (Type 2 & 3) properties. New licenses in residential zones are effectively limited to owner-occupied homestead properties. A city license, state tax registration, and adherence to occupancy and night caps are required.
To host an Airbnb in Austin, you almost certainly must live at the property and have it registered as your official homestead. The city is not issuing new permits for non-owner-occupied homes in residential areas. You'll need to get an annual city license for $739, register for state hotel taxes, and provide proof of insurance. If you rent out your entire home while you're away, you're capped at 30 days per year. Be sure to post your license number on your listing, as fines for non-compliance are steep.
Permit Required
Yes
Night Limit
30/year
Primary Residence
Required
Total Tax Rate
15.0%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
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Regulations Videos
Permit Fee
$739
Processing Time
4-6 weeks
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