Do I need a permit for short-term rentals in Austin, TX?

**Yes**, Austin requires a Short-Term Rental License for all rentals less than 30 consecutive days. You need to apply for either a Type 1 (owner-occupied) or Type 2 (non-owner occupied) license through the city's online portal. Operating without a license can result in fines.

What is the TOT tax rate in Austin, TX?

**11% TOT** is the current combined city hotel occupancy tax rate for short-term rentals in Austin. You need to collect this tax from your guests and remit it to the city quarterly. Keep accurate records of your bookings and tax payments to ensure compliance with all local regulations.

Are short-term rentals allowed in Austin, TX?

**Yes**, short-term rentals are allowed in Austin, but they are subject to strict regulations. You need to obtain a permit, collect and remit taxes, and adhere to zoning restrictions, especially for Type 2 rentals (non-owner occupied). Some areas might have density caps for these rental types.

How much does an STR permit cost in Austin, TX?

**$732.16** is the current annual fee for a short-term rental permit in Austin. You need to renew this license annually and comply with all requirements for your specific rental 'Type' (1 or 2). Failure to renew or comply can result in fines and revocation of your permit.

Can renters host on Airbnb in Austin, TX?

**No**, renters are generally not allowed to host on Airbnb in Austin without the property owner's explicit consent. You need to ensure that your lease agreement permits short-term rentals and that you comply with all city regulations, including obtaining the required license and paying the applicable taxes.

Austin, TX Short-Term Rental Laws &...

Gold Standard Verification

100%

Forensically verified with 3+ official sources

Verified: Jan 30, 2026

5 Official Sources

Summary

Austin significantly overhauled its short-term rental rules in September 2025, moving to a biennial licensing system and requiring $1M in liability insurance. The city requires a valid license for all rentals under 30 days, and major platforms now collect and remit the 11% city hotel occupancy tax.

Restriction Level

⛔

Strict

Score: 38 (restrictive)

Why this classification:

•High permit fee: $836.3
•Limited to 1 property per owner
•Permit required
•Reporting required
•No night cap
•No primary residence requirement
•Tenants can host

In Plain English

To host an Airbnb in Austin, you must first secure a city license, which now lasts for two years and costs $836.30 for new applicants. You are required to have a $1 million liability insurance policy and include your license number on all public listings. While platforms like Airbnb now handle most of the 11% city tax for you, you are still responsible for managing guest occupancy (max 10 adults) and ensuring noise levels are low during quiet hours (10 PM - 7 AM).

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.2%

Permit Fee

$836

Processing Time

4-8 weeks

6 Things Hosts Often Miss

1.You must include your active license number in every listing or the city will order the platform to remove you.
2.The spacing rule requires 1,000 feet between Type 2 (non-owner occupied) rentals.
3.A 2-hour response time is required for your local contact person in case of emergencies or complaints.
4.Licenses are non-transferable; if you sell the property, the new owner must apply for a new license.
5.The 11% city tax is separate from the 6% state tax; ensure your platform is remitting BOTH correctly.
6.ADUs (Accessory Dwelling Units) have specific density and usage restrictions that may limit their use as STRs.

Regulation Details

Eligibility(6)

•Austin: You can have a co-host or property manager help manage your listing.
•Austin allows tenants to host STRs. Requirements: Tenants may operate STRs with written permission from the property owner (Effective Oct 2025).
•Austin: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.

Requirements(17)

•Austin STR warning: A 2-hour response time is required for your local contact person in case of emergencies or complaints.
•Austin requires STR registration. The permit is called "Short-Term Rental Operating License". Apply through Austin Development Services Code Compliance. Processing time: 4-8 weeks. Renewal is required.

Application Process(9)

•Step-by-step guide to get an STR permit in Austin: Step 1: Zoning and Jurisdiction Check - Verify your property is within Austin city limits and check your specific zoning district for any unique overlays. Estimated time: 1 day. More info: https://www.austintexas.gov/GIS/JurisdictionWebMap/ Step 2: Gather Documentation - Obtain proof of property ownership, a Certificate of Insurance for $1M, and a floor plan of the unit. Documents needed: Deed, COI, Floor Plan. Estimated time: 1 week. Step 3: Submit Application - Complete the STR license application via the Austin Build + Connect (AB+C) portal and pay the initial fee. Estimated time: 30 mins. Cost: 836.3. More info: https://abc.austintexas.gov/ Step 4: Pass Inspection - Schedule a safety inspection with the city to verify smoke detectors and general habitability. Estimated time: 2 weeks.

Fees & Costs(2)

•Austin: The spacing rule requires 1,000 feet between Type 2 (non-owner occupied) rentals.
•Austin charges a registration fee of $836.3 (biennial). Extended/additional fee: $47.3 (Notification fee included in the initial total of $836.30).

Taxes(3)

•Austin charges a Hotel Occupancy Tax of 11%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and Vrbo began collecting/remitting 11% city tax on April 1, 2025.
•Austin: The 11% city tax is separate from the 6% state tax; ensure your platform is remitting BOTH correctly.
•Texas has a state sales tax of 6% that applies to STR rentals.

Limits & Restrictions(6)

•Austin limits STRs to a maximum of 10 guests. Formula: 2 adults per bedroom plus 2 additional adults; total cap of 10 adults.
•Austin enforces quiet hours: 10:00 PM to 7:00 AM.
•Austin: ADUs (Accessory Dwelling Units) have specific density and usage restrictions that may limit their use as STRs.

Safety Requirements(1)

•Austin requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Floor plan with exits, Working plumbing and electrical systems, Trash collection schedule posted.

Penalties(2)

•Austin: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Austin enforces the following penalties for STR violations: First offense: $500 fine. Second offense: $500 fine. Third offense: License revocation. Daily fine: $500 per day. Maximum fine: $2000 per violation (general city code). Permit may be revoked for violations.

Exemptions(2)

•Austin: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Austin exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

Step-by-Step Application Guide

Upgrade to Pro

Unlock: 4-Step Application Guide

Get step-by-step application guides and access to all 51+ markets.

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.

Other Texas Markets

Dallas

Texas

Moderate

Dallas currently requires short-term rental registration and a 7% local Hotel Occupancy Tax. While the city passed a strict ordinance in 2023 that would have banned STRs in single-family residential zones, a June 2024 court injunction has temporarily blocked the city from enforcing those zoning restrictions and certain operational rules.

Permit required

0.1% total tax

Rockport

Texas

Moderate

The City of Rockport requires all short-term rental operators to obtain an annual permit and undergo a safety inspection. Hosts must collect and remit a combined 10% local Hotel Occupancy Tax (8% City, 2% County) in addition to state taxes.

Permit required

0.2% total tax

El Paso

Texas

Permissive

The City of El Paso does not currently have a dedicated short-term rental permit or ordinance. However, all hosts are legally required to register and remit a 7% Hotel Occupancy Tax (HOT) to the city, in addition to Texas state-level taxes.

0.1% total tax

Frisco

Texas

Moderate

The City of Frisco requires all short-term rental hosts to obtain an annual permit and pay a $300 fee. Hosts must collect and remit a 7% city occupancy tax monthly in addition to the 6% state tax. Regulations include mandatory safety equipment, emergency contact posting, and a prohibition on renting to individuals under 21 years of age.

Permit required

0.1% total tax

Austin

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

Create a free account

Regulation Details

Eligibility(6)

Requirements(17)

Application Process(9)

Fees & Costs(2)

Taxes(3)

Limits & Restrictions(6)

Safety Requirements(1)

Penalties(2)

Exemptions(2)

Create a free account

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

Related Content

Other Texas Markets

Dallas

Rockport

El Paso

Frisco

Austin

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Austin, TX?

2What is the TOT tax rate in Austin, TX?

3Are short-term rentals allowed in Austin, TX?

4How much does an STR permit cost in Austin, TX?

5Can renters host on Airbnb in Austin, TX?

Related Content

Other Texas Markets

Dallas

Rockport

El Paso

Frisco