Texas county rules
Travis County, TX vacation rental rules and taxes
Travis County has no short-term rental rules of its own and no county hotel tax. Austin licenses every short-term rental in its city limits; Lakeway caps single-family rentals; Rollingwood bans them. Outside city limits, only the 6% state hotel tax applies.
Checked against official sources November 8, 2026What to do
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
Outside city limits
In unincorporated Travis County, including Austin’s extraterritorial jurisdiction, you don’t need an Austin license and don’t owe Austin’s hotel tax. You still owe the 6% state hotel tax, which Airbnb collects on its bookings.Source
Towns
Austin
Austin is the second-biggest rental market in Texas. Every short-term rental in city limits needs a city license, now good for two years ($736.60 new, $369.60 to renew). Since July 1, 2026, Airbnb and other platforms must show the license number and take down unlicensed listings when the city asks. Stays owe 6% state plus 11% city hotel tax, which Airbnb collects.
Full guideBee Cave
Bee Cave has no short-term rental rules: the city code doesn’t define them, and the city said in 2024 it had no plans to. Stays owe 6% state plus 7% city hotel tax, which you file with the city yourself.
Full guideLago Vista
Lago Vista has a real vacation rental market, but we couldn’t confirm its short-term rental rules online. Stays owe the 6% state hotel tax and possibly a city hotel tax. Ask the city before you list.
Full guideLakeway
Lakeway caps short-term rentals in single-family homes at 25 permits, spaced more than 1,000 feet apart; condo permits aren’t capped. Stays must be at least two nights. Stays owe 6% state plus 7% city hotel tax, which you file with the city yourself.
Full guideRollingwood
Rollingwood prohibits short-term rentals. Violations are misdemeanors punishable by up to $2,000 a day.
Full guideWest Lake Hills
West Lake Hills allows short-term rentals only in homes their owners live in, with a city permit and a two-night minimum. Guesthouses, trailers, and RVs can’t be rented.
Sources
- County zoning authority (Local Government Code ch. 231) · Texas Legislature
- Changes to Short-Term Rental Regulations · City of Austin Development Services
- 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.