LicensedRental

Texas county rules

Palo Pinto County, TX vacation rental rules and taxes

Palo Pinto County has no rental zoning, but it reported a 7% county hotel tax to the Comptroller, which matters for Possum Kingdom Lake rentals outside city limits. Mineral Wells and the small lake towns add their own hotel taxes.

Checked against official sources November 8, 2026
County rental rules
None
Texas counties can’t zone.Source
County hotel tax
7% reported
Airbnb doesn’t collect it.Source
Market
About 280 Airbnb listings
Graford 171 (mostly Possum Kingdom), Mineral Wells 83, Strawn 25.Source

We couldn’t confirm where the county’s hotel tax applies (outside cities only, or countywide) or how to file. Ask the Palo Pinto County auditor or tax office before you list.

What to do

  1. Inside or outside city limits?

    Most Possum Kingdom homes are outside any city, so there’s no rental permit, but subdivision deed restrictions and HOA rules apply. Inside Mineral Wells, Graford, Gordon, or Strawn, ask the city.Source

  2. 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. Palo Pinto County reported a 7% county hotel tax to the Comptroller; Airbnb doesn’t collect it, so ask the county how to register and file. Graford reports a 2% city hotel tax, Gordon and Mineral Wells 7%.Source

Towns

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 Spot something out of date?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.