Do I need a permit for short-term rentals in Canyon Lake?

**No**, there is currently no local STR-specific license required in Canyon Lake, though state and county regulations may still apply. Hosts must still register with the city. Always check with the Canyon Lake zoning office before operating a short-term rental.

What is the TOT tax rate in Canyon Lake?

**7% TOT** is the Hotel Occupancy Tax rate required for short-term rentals in Canyon Lake. You need to collect this tax from guests for all stays under 30 days and remit it to the city. Contact the city finance department for filing details.

Are short-term rentals allowed in Canyon Lake?

**Yes**, short-term rentals are generally allowed in Canyon Lake, but you must register with the city and comply with all applicable regulations. While there are no specific local STR permits, hosts must remit Hotel Occupancy Tax. Always verify current zoning laws before starting your operation.

What happens if I operate an illegal STR in Canyon Lake?

**Penalties** for operating an unregistered short-term rental in Canyon Lake can include fines and legal action. You need to register with the city and remit the required 7% Hotel Occupancy Tax. Contact the city for clarification on specific penalties for non-compliance.

Can renters host on Airbnb in Canyon Lake?

**Yes**, renters can host on Airbnb in Canyon Lake, provided they have the property owner's explicit permission. You also need to comply with all local regulations, including registering with the city and remitting the 7% Hotel Occupancy Tax. Always check your lease agreement first.

Canyon Lake, TX Short-Term Rental Laws

Gold Standard Verification

100%

Forensically verified with 3+ official sources

Verified: Jan 30, 2026

3 Official Sources

Summary

The City of Canyon Lake does not currently have a dedicated short-term rental permit or registration system. However, hosts are legally required to register with the City and remit a 7% Hotel Occupancy Tax on all stays under 30 days.

Restriction Level

✅

Permissive

Score: 3 (restrictive)

Why this classification:

•Reporting required
•No STR-specific permit required
•No night cap
•No primary residence requirement
•No STR-specific fee

In Plain English

To host an Airbnb in the City of Canyon Lake, you do not need a specific short-term rental permit. You are required to collect and pay a 7% local 'Hotel Occupancy Tax' to the city every quarter. While platforms like Airbnb may collect the 6% Texas State tax, they usually do not collect the city-level tax for Canyon Lake, so you must handle that yourself. Always check with your Homeowners Association (HOA), as many neighborhoods in this area have strict private bans on short-term rentals.

At a Glance

Permit Required

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

6 Things Hosts Often Miss

1.Platforms (Airbnb/VRBO) do NOT automatically remit the 7% local City tax.
2.Property owners must manually file quarterly tax reports even if no income was earned.
3.HOA restrictions are extremely common in Canyon Lake and may prohibit STRs even if the city allows them.
4.Canyon Lake is an incorporated city; if you are outside city limits, you follow Comal County rules instead.
5.The 7% City HOT is in addition to the 6% Texas State HOT, totaling 13% tax.
6.No specific STR-safety inspections are currently required by the city.

Regulation Details

Eligibility(2)

•Canyon Lake: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Canyon Lake, TX: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.

Requirements(11)

•Canyon Lake STR warning: Canyon Lake is an incorporated city; if you are outside city limits, you follow Comal County rules instead.
•Canyon Lake does not require STR registration.
•Canyon Lake STR warning: Platforms (Airbnb/VRBO) do NOT automatically remit the 7% local City tax.
•Canyon Lake STR warning: Property owners must manually file quarterly tax reports even if no income was earned.

Application Process(6)

•Canyon Lake STR permit - Step 1: Verify Jurisdiction. Confirm your property is within the incorporated City of Canyon Lake limits rather than unincorporated Comal County. Time: 5 minutes.

Taxes(5)

•Canyon Lake: Property owners must manually file quarterly tax reports even if no income was earned.
•Canyon Lake: Platforms (Airbnb/VRBO) do NOT automatically remit the 7% local City tax.

Limits & Restrictions(2)

•Canyon Lake enforces quiet hours: 10:00 PM - 7:00 AM (General Noise Ordinance).
•Canyon Lake: Canyon Lake is an incorporated city; if you are outside city limits, you follow Comal County rules instead.

Safety Requirements(1)

•Canyon Lake: No specific STR-safety inspections are currently required by the city.

Penalties(1)

•Canyon Lake enforces the following penalties for STR violations: First offense: Interest and penalties on unpaid taxes.

Exemptions(3)

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

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

Canyon Lake

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

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Regulation Details

Eligibility(2)

Requirements(11)

Application Process(6)

Taxes(5)

Limits & Restrictions(2)

Safety Requirements(1)

Penalties(1)

Exemptions(3)

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Frequently Asked Questions

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Canyon Lake

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

Frequently Asked Questions

1Do I need a permit for short-term rentals in Canyon Lake?

2What is the TOT tax rate in Canyon Lake?

3Are short-term rentals allowed in Canyon Lake?

4What happens if I operate an illegal STR in Canyon Lake?

5Can renters host on Airbnb in Canyon Lake?

Related Content

Other Texas Markets

Dallas

Rockport

El Paso

Frisco