Tarrant County, Texas
Grapevine, TX vacation rental requirements
Grapevine forbids short-term rentals in houses and in commercial buildings; since 2024 they’re allowed only in apartment complexes the City Council approves, with a permit and inspection. A homeowners’ lawsuit against the 2018 ban (City of Grapevine v. Muns) has kept some rentals going; check its status before you buy.
Checked against official sources November 8, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
Grapevine’s 2018 ban was challenged in City of Grapevine v. Muns. The court of appeals let the homeowners’ claims go forward in 2021 and the Texas Supreme Court declined review in 2023; as of 2024 a final trial was pending and the injunction let those residents keep renting. Fines run up to $2,000 per violation.
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
Tarrant 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
City of Grapevine
Know what’s allowed
Short-term rentals are forbidden in residential and non-residential districts. A multifamily development first needs a conditional use approved by City Council, then each unit needs a multifamily short-term rental permit after an inspection.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. Grapevine’s city hotel tax is 7%; Airbnb doesn’t collect it, so ask the city how to register and file.Source
House rules for guests
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
- Short-Term Rental FAQs · City of Grapevine
- Local Hotel Occupancy Tax Reporting 2025 · Texas Comptroller of Public Accounts (data.texas.gov)
- Texas Airbnb market data (active listings) · AirROI
- Restrictions pose challenges for Grapevine’s short-term rental owners (March 8, 2024) · Community Impact
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.