Guide · Cost to run
What it costs to run an Austin short-term rental.
Austin's license is modest and lasts two years. The bigger ongoing cost is the 17% hotel occupancy tax and the paperwork around it. Here are the numbers, with the math.
The short answer
Four numbers to know
| New license | $736.60, about $368.30 a year A $642.00 license fee plus a $94.60 neighbor-notification fee. Licenses are valid for two years. |
|---|---|
| Renewal | $369.60 every two years A $275.00 renewal fee plus the same $94.60 notification fee, which now applies at every renewal. |
| Hotel occupancy tax | 17% of the rental price 6% Texas, 9% City and a 2% City venue tax, charged to the guest. Platforms collect the City tax on their bookings. |
| Guest limit | No cap in the City rules Zoning-code occupancy limits were repealed, so check your HOA and fire code instead. |
Fixed cost
What the license costs
The City publishes both amounts on its short-term rental page. Fees are non-refundable, and a license cannot be transferred if you sell: a new owner applies for a new one.
| Application | License fee | Notification fee | Total | Per year (2-year term) | Nights at $150 | Nights at $250 | Nights at $400 |
|---|---|---|---|---|---|---|---|
| New license | $642.00 | $94.60 | $736.60 | $368.30 | 4.9 | 2.9 | 1.8 |
| Renewal | $275.00 | $94.60 | $369.60 | $184.80 | 2.5 | 1.5 | 0.9 |
Source: City of Austin Development Services short-term rental page, read October 5, 2026. The nights columns show how many booked nights, at an example nightly rate before tax, cover the full fee; they are not forecasts. Fees can change with the City's fee schedule, so confirm on the City page before you apply. You also need an Austin Finance Online account to apply and file taxes.
Guest-paid, but it shapes your price
The 17% hotel occupancy tax
On a $3,000 stay under 30 days, tax adds $510.00. Guests see the all-in price, so it matters when you compare against other markets.
| Layer | Rate | On a $3,000 stay |
|---|---|---|
| Texas hotel occupancy tax | 6% | $180.00 |
| City of Austin hotel occupancy tax | 9% | $270.00 |
| City venue project tax | 2% | $60.00 |
| Total | 17% | $510.00 |
Since April 1, 2025, platforms that take payment collect and remit the City tax on those bookings. The state tax is collected by platforms that have agreed to do so with the Comptroller; otherwise you collect it. You still file a quarterly City report, including a zero report for a quarter with no rentals.
Rules that affect cost and timing
Limits, timing and penalties
| How many you can run | Up to two per site; more sites must be 1,000 feet apart This applies to individuals on single-family sites and covers LLC and trust ownership. Mixed-use and multifamily sites have percentage limits. |
|---|---|
| Processing time | Plan for about 6 to 8 weeks for a new single-family license Apply before you list. Advertising a rental without a license is itself a violation. |
| Local contact | Needed if you live outside the Austin metro The contact must live in Travis, Williamson, Hays, Bastrop or Caldwell County and answer within two hours. |
| Platforms | License number required in every listing Since July 1, 2026 the City can ask platforms to remove unlicensed listings. |
| Penalties | Fines of up to $500 per offense per day Repeated or serious violations can lead to revocation. |
| No longer required | Insurance and a Certificate of Occupancy Dropped for new applicants and renewals in October 2025, which lowers up-front cost. |
Full sourced rules, with evidence for each line, are on the Austin market page. For comparisons, see Nashville vs Austin and Austin vs San Antonio.
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