Grayson County, Texas
Denison, TX vacation rental requirements
Denison has about 150 Airbnb listings. Stays owe 6% state + 7% city hotel tax. We haven’t confirmed whether the city requires a short-term rental permit, so ask before you list.
Checked against official sources November 8, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
We found no short-term rental permit in a November 2026 search. Denison requires owners to register every rental unit with the city (no fee), but its information sheet doesn’t say whether short-term rentals are included. Ask the city.
Your licensing checklist
In order: the state, the county, then the town.
State of Texas
Know who pays the hotel tax
Airbnb collects and pays the 6% state hotel tax on its bookings. If guests pay you directly or through a site that doesn’t collect, register with the Comptroller and file the state tax yourself.Source
Register for local hotel tax
Your city (and in some places your county) charges its own hotel tax, filed with that city or county, not the state. Airbnb pays it only in the places on its list; everywhere else you register and file it yourself, even for Airbnb bookings.Source
Check your city’s rules
Many Texas cities require a short-term rental permit or registration, and some require an inspection, a local contact, or posted rules. Outside city limits there’s usually no permit, but deed restrictions and HOA rules often limit rentals. Pick your area for the local rules.Source
Grayson County, Texas
Then pick your city
Texas counties can’t zone, so short-term rental permits, zoning limits, and the local hotel tax come from the city your home is in. Outside city limits there’s usually no permit, but deed restrictions and HOA rules often limit rentals.Source
Hotel taxes on each stay
Stays of 29 nights or less owe the 6% state hotel tax, which Airbnb collects on its bookings. If guests pay you directly, file it with the Texas Comptroller. Outside city limits, we found no local hotel tax reported to the Comptroller.Source
City of Denison
Hotel taxes on each stay
Stays of 29 nights or less owe the 6% state hotel tax, which Airbnb collects on its bookings. If guests pay you directly, file it with the Texas Comptroller. Airbnb collects Denison’s 7% hotel tax; for direct bookings, register and file with the city.Source
Ask about permits and zoning
Ask the City of Denison whether zoning allows a short-term rental at your address and whether you need a permit, registration, or inspection. Check your deed restrictions and HOA rules too.
Sources
- Hotel Occupancy Tax FAQs: Airbnb · Texas Comptroller of Public Accounts
- Occupancy tax collection and remittance by Airbnb in Texas · Airbnb
- County zoning authority (Local Government Code ch. 231) · Texas Legislature
- Local Hotel Occupancy Tax Reporting 2025 · Texas Comptroller of Public Accounts (data.texas.gov)
- Texas Airbnb market data (active listings) · AirROI
- Rental Registration and Inspection Incentive Program information sheet · City of Denison
A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.