Hays County, Texas
Dripping Springs, TX vacation rental requirements
Dripping Springs charges a 7% city hotel tax on short-term rentals, and says it applies in its extraterritorial jurisdiction too. Airbnb doesn’t collect it, so hosts file quarterly with the city. We didn’t find a separate rental permit.
Checked against official sources November 8, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
A city usually can’t collect hotel tax outside its limits; if your home is in the ETJ, ask the city treasurer what authority applies before you file.
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
Hays County, Texas
Then your city
Texas counties can’t zone, so rental rules come from the city your home is in. Outside city limits there’s usually no permit, but deed restrictions and HOA rules may limit rentals. Pick your city.Source
City of Dripping Springs
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. The city’s 7% hotel tax covers short-term rentals in city limits and the ETJ, and Airbnb doesn’t pay it for you. File a quarterly report with the City Treasurer by the 20th after each quarter, even when nothing is due, and pay by check at 511 Mercer Street.Source
Ask about zoning
Ask the city whether zoning allows a short-term rental at your address. 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
- Hotel Occupancy Taxes · City of Dripping Springs Treasurer
- Texas Airbnb market data (active listings) · AirROI
- Local Hotel Occupancy Tax Reporting 2025 · Texas Comptroller of Public Accounts (data.texas.gov)
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.