LicensedRental

Travis County, Texas

Lakeway, TX vacation rental requirements

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.

Checked against official sources November 8, 2026

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Market
About 70 Airbnb listings
City permit
Required
25 for single-family homes, more than 1,000 feet apart; condos unlimited.Source
Minimum stay
2 nights
Hotel taxes
6% state + 7% city

These rules come from a July 2024 news guide; we couldn’t read Lakeway’s code online. Confirm the permit count and fees with the city.

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 Lakeway

  1. Ask whether a permit is open

    With only 25 single-family permits, ask the city whether one is available and how far your home is from the nearest permitted rental. Condo permits aren’t capped.Source

  2. 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. Lakeway’s 7% hotel tax isn’t on Airbnb’s collection list, so register with the city and file it yourself, Airbnb bookings included.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.