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, 2026We 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
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
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
Mineral Wells
Mineral Wells has about 80 Airbnb listings. Stays owe 6% state + 7% city hotel tax, plus any county tax. We haven’t confirmed whether the city requires a short-term rental permit, so ask before you list.
Full guidePossum Kingdom Lake and unincorporated Palo Pinto County
Around Possum Kingdom Lake there’s no county rental permit, but Palo Pinto County reported a 7% county hotel tax that you file yourself, on top of the 6% state tax Airbnb collects. Deed restrictions and HOA rules are the main limits.
Sources
- 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
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 Spot something out of date?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.