LicensedRental

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, 2026

Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.

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Market
About 8,700 Airbnb listings
Ranked second in Texas by AirROI.Source
City license
Required, $736.60 for two years
Renewal $369.60. Not transferable to a new owner.Source
Platforms
License number on every listing
Since July 1, 2026, platforms remove unlicensed listings when the city asks.Source
How many per lot
Up to 2 on a single-family site
Multifamily: the greater of one unit or 10%; 25% if the building has a commercial use.Source
Local contact
Responds within 2 hours, any time
Required if you live outside the Austin metro; must live in Travis, Williamson, Hays, Bastrop, or Caldwell County.Source
Hotel taxes
6% state + 11% city
9% city hotel tax plus 2% venue tax. Airbnb collects both.Source

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

  1. 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

    Texas hotel occupancy tax →

  2. 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

  3. 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

  1. 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

  2. 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

  1. 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

    Austin short-term rental rules →

  2. 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

  3. 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

    Apply for an Austin STR license →

  4. 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

  5. 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

Noise
75 dB at the property line, 10 a.m. to 10 p.m.
Nothing audible past the property line from 10 p.m. to 10 a.m.Source
Neighbors
Notified at each new license and renewal
Everyone within 100 feet, at your cost.Source

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.