Do I need a permit for short-term rentals in Horseshoe Bay?

**Yes**, Horseshoe Bay requires a Short-Term Rental Permit to operate legally. You need to obtain this permit annually, and it is a prerequisite for operating a short-term rental within the city limits. Check Chapter 22 of the Municipal Code for more details on application requirements. *(52 words)*

What is the TOT tax rate in Horseshoe Bay?

**7% TOT** is the local Hotel Occupancy Tax rate for short-term rentals in Horseshoe Bay. You must collect this tax from your guests and remit it to the city. In addition to the local tax, a 6% state tax also applies, so be sure to account for both. *(53 words)*

How much does an STR permit cost in Horseshoe Bay?

**$300** is the annual fee for a Short-Term Rental Permit in Horseshoe Bay. You need to pay this fee each year to maintain a valid permit and legally operate your short-term rental. The permit is required to ensure compliance with safety and operational standards. *(50 words)*

Are short-term rentals allowed in Horseshoe Bay?

**Yes**, short-term rentals are allowed in Horseshoe Bay, but they are regulated by the city. You need to obtain a permit, collect and remit Hotel Occupancy Taxes, and designate a local contact available 24/7. Compliance with these regulations is essential for legal operation. *(50 words)*

What happens if I operate an illegal STR in Horseshoe Bay?

**Penalties** may be levied for operating a short-term rental without a permit in Horseshoe Bay. You need to obtain the required permit and comply with all regulations outlined in Chapter 22 of the Municipal Code to avoid potential fines and legal repercussions. Ensure you fully understand the rules. *(52 words)*

Horseshoe Bay

Moderate

TexasUpdated Mar 29, 2026

Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

The City of Horseshoe Bay regulates short-term rentals through Chapter 22 of the Municipal Code, requiring an annual permit and a safety inspection. Hosts must collect 7% local Hotel Occupancy Tax in addition to the 6% state tax and designate a 24/7 local contact.

Restriction level

Severity 16

Classification

Moderate

Severity

Why this classification

Moderate permit fee: $300
Permit required
Reporting required
No night cap
No primary residence requirement

In plain English

What this means for you

To host an Airbnb in Horseshoe Bay, you must apply for a city permit which costs $300 every year. You are required to have a local contact person who can respond to issues within one hour, and your property must pass a fire safety inspection. Guests are limited based on the number of bedrooms (2 per room + 2 extra), and you must collect and pay a total of 13% in occupancy taxes. Rentals must be for at least two nights.

At a glance

Key numbers

Permit requiredYes

Night limitNone

Primary residenceNot required

Total tax rate0.1%

Permit fee$300

Processing time10-14 business days

7 things hosts often miss

Common compliance gaps

1Confirmed researching City of Horseshoe Bay (incorporated), not Llano/Burnet County unincorporated areas.
2Minimum stay of 2 nights is strictly enforced.
3Maximum occupancy is 2 persons per bedroom plus 2, with a hard cap of 10 people.
4Fire inspections are mandatory before a permit is issued.
5A local emergency contact must be reachable 24/7 and respond within 60 minutes.
6Parking is strictly limited to the number of spaces identified on your site plan; no street parking for guests.
7Outdoor amplified sound is generally prohibited during quiet hours (10 PM - 7 AM).

Regulation details

Sourced from official code

Eligibility8 rules

Horseshoe Bay: You can have a co-host or property manager help manage your listing.
Horseshoe Bay prohibits STRs in the following property types: RV, Boat, Tents.
Horseshoe Bay, TX: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
Horseshoe Bay, TX: You can have a co-host or property manager help manage your listing.

Requirements18 rules

Horseshoe Bay STR warning: Maximum occupancy is 2 persons per bedroom plus 2, with a hard cap of 10 people.
Horseshoe Bay STR warning: Minimum stay of 2 nights is strictly enforced.
Horseshoe Bay: You must display your permit/registration number on your Airbnb listing.
Horseshoe Bay STR warning: Fire inspections are mandatory before a permit is issued.

Application process11 rules

Horseshoe Bay extended permit requirement: A late fee of $100 applies if not renewed on time.

Fees & costs1 rule

Horseshoe Bay charges a registration fee of $300 (annual).

Taxes2 rules

Texas has a state sales tax of 0.06% that applies to STR rentals.
Horseshoe Bay charges a Hotel Occupancy Tax of 0.07%. This applies to stays under 30 days. Note: Airbnb and VRBO may collect state taxes (6%), but hosts must verify if local 7% is remitted or requires manual filing.

Limits & restrictions9 rules

Horseshoe Bay: Minimum stay of 2 nights is strictly enforced.
Horseshoe Bay limits stays to a maximum of 29 nights.
Horseshoe Bay occupancy calculation: 2 per bedroom plus 2 additional guests, not to exceed 10 total.. Count your bedrooms to determine your max guest limit.
Horseshoe Bay: Parking is strictly limited to the number of spaces identified on your site plan; no street parking for guests.

Safety requirements2 rules

Horseshoe Bay requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Evacuation map posted, Landline required if cell service is unreliable, Standardized STR signage not required, but emergency info must be inside.
Horseshoe Bay: Fire inspections are mandatory before a permit is issued.

Penalties3 rules

Horseshoe Bay enforces the following penalties for STR violations: First offense: $500 per day. Second offense: Up to $2,000 per day. Third offense: Permit revocation. Daily fine: Each day of violation is a separate offense. Maximum fine: $2,000 per day. Permit may be revoked for violations.

Exemptions3 rules

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

Frequently asked questions

5 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes 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.

Researched & verified by Learn STR at GoStudioM

Horseshoe Bay

Moderate

TexasUpdated Mar 29, 2026

Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

Restriction level

Severity 16

Classification

Moderate

Severity

Why this classification

Moderate permit fee: $300
Permit required
Reporting required
No night cap
No primary residence requirement

In plain English

What this means for you

At a glance

Key numbers

Permit requiredYes

Night limitNone

Primary residenceNot required

Total tax rate0.1%

Permit fee$300

Processing time10-14 business days

7 things hosts often miss

Common compliance gaps

1Confirmed researching City of Horseshoe Bay (incorporated), not Llano/Burnet County unincorporated areas.
2Minimum stay of 2 nights is strictly enforced.
3Maximum occupancy is 2 persons per bedroom plus 2, with a hard cap of 10 people.
4Fire inspections are mandatory before a permit is issued.
5A local emergency contact must be reachable 24/7 and respond within 60 minutes.
6Parking is strictly limited to the number of spaces identified on your site plan; no street parking for guests.
7Outdoor amplified sound is generally prohibited during quiet hours (10 PM - 7 AM).

Regulation details

Sourced from official code

Eligibility8 rules

Horseshoe Bay: You can have a co-host or property manager help manage your listing.
Horseshoe Bay prohibits STRs in the following property types: RV, Boat, Tents.
Horseshoe Bay, TX: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
Horseshoe Bay, TX: You can have a co-host or property manager help manage your listing.

Requirements18 rules

Horseshoe Bay STR warning: Maximum occupancy is 2 persons per bedroom plus 2, with a hard cap of 10 people.
Horseshoe Bay STR warning: Minimum stay of 2 nights is strictly enforced.
Horseshoe Bay: You must display your permit/registration number on your Airbnb listing.
Horseshoe Bay STR warning: Fire inspections are mandatory before a permit is issued.

Application process11 rules

Horseshoe Bay extended permit requirement: A late fee of $100 applies if not renewed on time.

Fees & costs1 rule

Horseshoe Bay charges a registration fee of $300 (annual).

Taxes2 rules

Texas has a state sales tax of 0.06% that applies to STR rentals.
Horseshoe Bay charges a Hotel Occupancy Tax of 0.07%. This applies to stays under 30 days. Note: Airbnb and VRBO may collect state taxes (6%), but hosts must verify if local 7% is remitted or requires manual filing.

Limits & restrictions9 rules

Horseshoe Bay: Minimum stay of 2 nights is strictly enforced.
Horseshoe Bay limits stays to a maximum of 29 nights.
Horseshoe Bay occupancy calculation: 2 per bedroom plus 2 additional guests, not to exceed 10 total.. Count your bedrooms to determine your max guest limit.
Horseshoe Bay: Parking is strictly limited to the number of spaces identified on your site plan; no street parking for guests.

Safety requirements2 rules

Horseshoe Bay requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Evacuation map posted, Landline required if cell service is unreliable, Standardized STR signage not required, but emergency info must be inside.
Horseshoe Bay: Fire inspections are mandatory before a permit is issued.

Penalties3 rules

Horseshoe Bay enforces the following penalties for STR violations: First offense: $500 per day. Second offense: Up to $2,000 per day. Third offense: Permit revocation. Daily fine: Each day of violation is a separate offense. Maximum fine: $2,000 per day. Permit may be revoked for violations.

Exemptions3 rules

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

Frequently asked questions

5 answered

Disclaimer

Researched & verified by Learn STR at GoStudioM

Summary

Restriction level

Why this classification

In plain English

At a glance

7 things hosts often miss

Regulation details

Frequently asked questions

1Do I need a permit for short-term rentals in Horseshoe Bay?

2What is the TOT tax rate in Horseshoe Bay?

3How much does an STR permit cost in Horseshoe Bay?

4Are short-term rentals allowed in Horseshoe Bay?

5What happens if I operate an illegal STR in Horseshoe Bay?

Disclaimer

Summary

Restriction level

Why this classification

In plain English

At a glance

7 things hosts often miss

Regulation details

Frequently asked questions

1Do I need a permit for short-term rentals in Horseshoe Bay?

2What is the TOT tax rate in Horseshoe Bay?

3How much does an STR permit cost in Horseshoe Bay?

4Are short-term rentals allowed in Horseshoe Bay?

5What happens if I operate an illegal STR in Horseshoe Bay?

Disclaimer