Lakeway requires all short-term rentals to obtain an annual permit and pass a fire safety inspection. The city imposes a 7% Hotel Occupancy Tax in addition to the 6% state tax, and occupancy is strictly limited based on the number of bedrooms.
To host an Airbnb in Lakeway, you must first apply for a city permit which costs $450 for the first year. You'll need to prove you have $1 million in liability insurance and pass a fire safety inspection. Once approved, you are required to collect a 7% local tax from guests and send it to the city every quarter. Keep in mind that you cannot rent out apartments or ADUs, and you must follow strict rules regarding noise and parking to avoid heavy fines.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
13.0%
Disclaimer
Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.
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Permit Fee
$450
Processing Time
2-4 weeks
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