Travis County, Texas
Austin, TX vacation rental requirements
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.
Checked against official sources November 8, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
New Type 2 licenses for houses you don’t live in: the city stopped issuing them in 2016, and a 2023 federal court ruling said they must be available wherever Type 1 licenses are. Owners who bought before 2016 are eligible. Ask licensing whether a new Type 2 license is available at your address.
In September 2025 the council replaced the old 1,000-foot spacing rule with a two-per-site limit and asked staff to study provisional licenses and lower fees.
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
Travis County, Texas
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
City of Austin
Check that you’re inside the city
Use the city’s jurisdiction map. In the full-purpose city you need a license and owe city hotel tax. In the limited-purpose area you need a license but owe no city hotel tax. In the extraterritorial jurisdiction (ETJ) you need neither.Source
Pick your license type
Type 1 is your own home (owner-occupied). Type 2 is a whole house or duplex unit you don’t live in. Type 3 is a unit in a multifamily building. Tenants can apply too, with the owner’s written permission. Since February 2025 rentals are allowed with a license in every residential zone.Source
Apply online
Apply in Austin Finance Online and pay the fee. Email a copy of the owner’s ID to STRdocs@austintexas.gov. If someone else applies for you, include a notarized agent authorization form. Since October 2025 you don’t need a certificate of occupancy or proof of insurance. Expect 6 to 8 weeks for a house.Source
Post the information packet
Leave a packet in a common area with your local contact, noise and parking rules, the trash schedule, burn and water restrictions, and ADA information. Put your license number on every listing.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. Austin’s 11% hotel tax (9% plus a 2% venue tax) is collected by Airbnb and other platforms. You still file a quarterly city report showing platform-collected amounts, pay the tax yourself on direct bookings, and file zero reports for empty quarters.Source
Fees
$736.60 every two years, then $369.60 to renew
| New license (two years)$642 license fee plus $94.60 neighbor notification fee | $736.60 |
|---|---|
| Renewal (two years)$275 plus $94.60 notification fee | $369.60 |
Fees are non-refundable. 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
- Changes to Short-Term Rental Regulations · City of Austin Development Services
- Important Updates Regarding August 2023 Ruling Impacting Short-Term Rentals in Austin · City of Austin
- Short-Term Rentals: apply for a license · City of Austin Development Services
- Texas Airbnb market data (active listings) · AirROI
- Council OKs new rules for short-term rentals (September 2025) · Austin Monitor
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.