LicensedRental

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, 2026

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Market
About 400 Airbnb listings
Ranked 32nd in Texas by AirROI.Source
City rental permit
None found
Ask the city about zoning at your address.
Hotel taxes
6% state + 7% city
City says the tax covers its ETJ too. Hosts file quarterly.Source

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

  1. 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

    Texas hotel occupancy tax →

  2. 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

  3. 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

  1. 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

  1. 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

  2. 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

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.