STR taxes on AirBnB and VRBO
Member since 2022 · 16 posts · 5 votes
STR taxes on AirBnB and VRBO
Most Popular Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votesAre you talking about the Lodging Tax/TOT (Transit Occupancy Tax) ?
If so, they will automatically submit this for you to the proper agencies.
I assume you're not talking about income tax or other taxes?
20 Replies
- 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
Are you talking about the Lodging Tax/TOT (Transit Occupancy Tax) ?
If so, they will automatically submit this for you to the proper agencies.
I assume you're not talking about income tax or other taxes?
- Cambridge, MA · Member since 2015 · 651 posts · 735 votes2y
I would not be surprised if this isn't determined state by state. Massachusetts requires that *all* STR platforms collect both city and state STR occupancy taxes and remit them to the state monthly. The state then sends the city portion back to the city. The hosts don't need to do anything. When the law was first implemented, VRBO was behind schedule and for the first month, I had to collect and remit the city & state occupancy taxes for my VRBO bookings. It was a pain in the neck and one of the many reasons I decided to drop my listings from VRBO.
- 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
Hey @Noelle Debruhl, both VRBO and AirBNB collect the occupancy taxes and submit for us.
Are you currently paying the taxes separately? You might have been double paying the taxes.
- Real Estate Agent · Salt Lake City, UT · Member since 2020 · 490 posts · 205 votes1y
Quote from @Michael Baum:
Hey @Noelle Debruhl, both VRBO and AirBNB collect the occupancy taxes and submit for us.
Are you currently paying the taxes separately? You might have been double paying the taxes.
Correct me if I am wrong, I believe Airbnb will do it for you in every state. VBRO may depending on the state..
- 1yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votesIt will depend on the state and the taxes that need to be paid. Everyone needs to check and make sure.
Quote from @Jeremy Jareckyj:
Quote from @Michael Baum:
Hey @Noelle Debruhl, both VRBO and AirBNB collect the occupancy taxes and submit for us.
Are you currently paying the taxes separately? You might have been double paying the taxes.
Correct me if I am wrong, I believe Airbnb will do it for you in every state. VBRO may depending on the state..
For example, AirBNB and VRBO pay all the taxes with the exception of the 1% tax that my tiny little town now wants me to remit which I do separately.
- 2yJake BakerBusiness MemberFlipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 694 votes
Airbnb has good articles explaining what they are for
SC: https://www.airbnb.com/help/article/2328
My market of CA: https://www.airbnb.com/help/article/2297
BookkeepingRE - Bookkeeping for Real Estate & Service-Based Businesses58 Reviews - Member since 2023 · 113 posts · 129 votes2y
It varies wildly by state, county and city. My state has no statewide Lodging/TOT tax. For the county TOT tax, AirBnB collects and remits it on my behalf. But for VRBO and direct bookings, I have to collect it and remit it to the county on a quarterly return.
In the county next door, hosts are responsible for collecting and remitting TOT on all bookings, even AirBnB.
- 2yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
There is a spot where it will tell you whether they are collecting an remitting for you. It does depend on the state and locality you are in.
Vacation Rentals of Florida53 Reviews - Member since 2022 · 16 posts · 5 votes2y
Quote from @Craig Jones:
It varies wildly by state, county and city. My state has no statewide Lodging/TOT tax. For the county TOT tax, AirBnB collects and remits it on my behalf. But for VRBO and direct bookings, I have to collect it and remit it to the county on a quarterly return.
In the county next door, hosts are responsible for collecting and remitting TOT on all bookings, even AirBnB.
How do you collect the tax with your VRBO ?
- Member since 2022 · 16 posts · 5 votes2y
Quote from @Michael Baum:
Hey @Noelle Debruhl, both VRBO and AirBNB collect the occupancy taxes and submit for us.
Are you currently paying the taxes separately? You might have been double paying the taxes.
I haven't started paying yet.... but my city/county requires that I pay the 20th of every month. And I don't know if ABB/VRBO submit them in that timeline... or when they do submit the taxes they are collecting on my behalf.
- Member since 2022 · 16 posts · 5 votes2y
Quote from @Carolyn Fuller:
I would not be surprised if this isn't determined state by state. Massachusetts requires that *all* STR platforms collect both city and state STR occupancy taxes and remit them to the state monthly. The state then sends the city portion back to the city. The hosts don't need to do anything. When the law was first implemented, VRBO was behind schedule and for the first month, I had to collect and remit the city & state occupancy taxes for my VRBO bookings. It was a pain in the neck and one of the many reasons I decided to drop my listings from VRBO.
Thank you that is interesting. Yes, the VRBO is slightly more opaque about the taxes. I've called both platforms and the personnel don't have any clear answers on how they pay the taxes they've collected for my booking.
- Member since 2022 · 16 posts · 5 votes2y
Quote from @Bruce Woodruff:
Are you talking about the Lodging Tax/TOT (Transit Occupancy Tax) ?
If so, they will automatically submit this for you to the proper agencies.
I assume you're not talking about income tax or other taxes?
Good to know they will automatically submit. Yes, I'm talking about the Occupancy Tax.
- Member since 2022 · 16 posts · 5 votes2y
A big part of the reason I'm confused @Carolyn Fuller is that VRBO had me enter the amount of tax I would like them to collect, whereas ABB withheld automatically. Since I entered 10% into VRBO rather than it prompting me, I have no idea if they are going to send what percentage to whom. The personnel there don't seem to know either. I will check with my city officials on this issue as they've likely had experience with VRBO and ABB
- Cambridge, MA · Member since 2015 · 651 posts · 735 votes2y
Quote from @Noelle Debruhl:
A big part of the reason I'm confused @Carolyn Fuller is that VRBO had me enter the amount of tax I would like them to collect, whereas ABB withheld automatically. Since I entered 10% into VRBO rather than it prompting me, I have no idea if they are going to send what percentage to whom. The personnel there don't seem to know either. I will check with my city officials on this issue as they've likely had experience with VRBO and ABB
I agree with you that the city is more likely to know than the staff at VRBO or even Airbnb. The laws vary from city to city and state to state. It is complex but Airbnb seems much more on top of it than VRBO. I think the reality is that Airbnb is a larger company with a larger IT department so their software is more sophisticated and they have the staff to make software changes in a timely fashion to meet state and local laws.
- Member since 2024 · 2 posts · 0 votes2y
I have another question for this thread. I'm relatively new here to this site.
I am a co-host in Georgia. Using the split payout function on Airbnb. I sent a property owner his financial report and I included my payout from airbnb in his numbers, mainly for him to see that we're not cheating him and he's getting his monies worth.
Question: Since Airbnb pays me directly, does he get to claim my payout as an expense? I have gotten mixed reviews and I am not sure the Airbnb rep understood my questioning (language barriers).
- Member since 2024 · 2 posts · 0 votes1y
Hello! Tax woes...
Was so happy to stumble upon this post since I am a month into having my STR License and now subject to a 9% Transient tax on top of the State 1.5% - I know, ouch. Was too busy getting my STR up to speed that I missed that the taxes on the platforms wasn't being all collected. Luckily I am catching it now and it affects only 2 of my bookings. VRBO flatly states that they are "obligated" to add both taxes where Airbnb only takes the state transient tax and leaves you to the local. This of course is going to be an accounting nightmare to report to the city.
Questions: Can you force Airbnb to collect all the taxes? Is this something the County local government can enforce?
Has anyone had a work around for adding in the taxes on Airbnb? We have tried
- Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes1yIt is totally county/State specific. VRBO only collects and remits state tax in my county in Texas, I have to pay the hotel occupancy tax directly to my county tax office monthly. AIRBNB collects and remits both though. You need to contact each platform for your specific location to be sure.
Quote from @Cindy Houck:
Hello! Tax woes...
Was so happy to stumble upon this post since I am a month into having my STR License and now subject to a 9% Transient tax on top of the State 1.5% - I know, ouch. Was too busy getting my STR up to speed that I missed that the taxes on the platforms wasn't being all collected. Luckily I am catching it now and it affects only 2 of my bookings. VRBO flatly states that they are "obligated" to add both taxes where Airbnb only takes the state transient tax and leaves you to the local. This of course is going to be an accounting nightmare to report to the city.
Questions: Can you force Airbnb to collect all the taxes? Is this something the County local government can enforce?
Has anyone had a work around for adding in the taxes on Airbnb? We have tried
- Member since 2024 · 48 posts · 23 votes1y
Quote from @Account Closed:
It is totally county/State specific. VRBO only collects and remits state tax in my county in Texas, I have to pay the hotel occupancy tax directly to my county tax office monthly. AIRBNB collects and remits both though. You need to contact each platform for your specific location to be sure.Quote from @Cindy Houck:
Hello! Tax woes...
Was so happy to stumble upon this post since I am a month into having my STR License and now subject to a 9% Transient tax on top of the State 1.5% - I know, ouch. Was too busy getting my STR up to speed that I missed that the taxes on the platforms wasn't being all collected. Luckily I am catching it now and it affects only 2 of my bookings. VRBO flatly states that they are "obligated" to add both taxes where Airbnb only takes the state transient tax and leaves you to the local. This of course is going to be an accounting nightmare to report to the city.
Questions: Can you force Airbnb to collect all the taxes? Is this something the County local government can enforce?
Has anyone had a work around for adding in the taxes on Airbnb? We have tried
This is a source of frustration for me. I am trying to put one of my listings on VRBO and contacted them about this but nobody I spoke with knew. The last person was going to look into it and get back to me at a scheduled time the next day and I never heard. So I've had it on hold b/c I want to be sure everything is all in order before accepting bookings on that platform. I guess I can ask the county and see if they know. I believe Airbnb is handling it all so far.
- Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes1yThat is how I figured it out. I went to the county office and asked if they were getting any hotel occupancy taxes from VRBO for my cabin. They said no. I was 22 months behind in paying the taxes but they were nice enough to let me pay them without penalty. After I had this information I finally was able to talk to a VRBO person that said they only pay the state tax.
Quote from @Karina Busch:
Quote from @Account Closed:
It is totally county/State specific. VRBO only collects and remits state tax in my county in Texas, I have to pay the hotel occupancy tax directly to my county tax office monthly. AIRBNB collects and remits both though. You need to contact each platform for your specific location to be sure.Quote from @Cindy Houck:
Hello! Tax woes...
Was so happy to stumble upon this post since I am a month into having my STR License and now subject to a 9% Transient tax on top of the State 1.5% - I know, ouch. Was too busy getting my STR up to speed that I missed that the taxes on the platforms wasn't being all collected. Luckily I am catching it now and it affects only 2 of my bookings. VRBO flatly states that they are "obligated" to add both taxes where Airbnb only takes the state transient tax and leaves you to the local. This of course is going to be an accounting nightmare to report to the city.
Questions: Can you force Airbnb to collect all the taxes? Is this something the County local government can enforce?
Has anyone had a work around for adding in the taxes on Airbnb? We have tried
This is a source of frustration for me. I am trying to put one of my listings on VRBO and contacted them about this but nobody I spoke with knew. The last person was going to look into it and get back to me at a scheduled time the next day and I never heard. So I've had it on hold b/c I want to be sure everything is all in order before accepting bookings on that platform. I guess I can ask the county and see if they know. I believe Airbnb is handling it all so far.
- Cambridge, MA · Member since 2015 · 651 posts · 735 votes1y
re: "Questions: Can you force Airbnb to collect all the taxes? Is this something the County local government can enforce?"
It's the state or city that can force Airbnb to collect all the taxes. It requires lawyers and isn't cheap... Massachusetts forced all the short term platforms to collect all the state and local taxes which wasn't all that easy for the platforms to calculate. Each city has its own tax formula! I think they submit the taxes to the state and the state distributes the local portion to the cities and towns.
We are currently staying in an Airbnb in Salzburg. We found an envelope in the unit when we arrived with instructions on leaving the city tax in the envelope before we leave. Other Airbnbs on this trip have informed us that we need to pay the local taxes upon arrival. As a host, I'd prefer to collect them before the check-in but I'm guessing our current Salzburg hostess has had reasonable experience trusting her guests to leave the appropriate tax euros.
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