Short-term rental rules · El Paso, Texas

Short-term rentals in El Paso, explained properly.

Short-term rentals are treated as a residential use in El Paso: since February 2026 the city's zoning code defines a short-term rental (a home or unit rented for less than 30 consecutive days) and applies the zoning standard for the property's base residential use. El Paso is extending its 9% hotel occupancy tax (7% city tax plus a 2% venue project tax) to short-term rentals: City Council approved collection on June 9, 2026, to begin 90 to 180 days later, and adopted the matching City Code amendments on September 1, 2026. Texas's 6% state hotel tax also applies.

9 rule fields8 cited sources

Watch El Paso for rule changes · See every source

At a glance

What you need to know before you buy or list

Question	Answer
Are short-term rentals allowed?	Yes — treated as the home's residential use[1]Clause Clause
City hotel occupancy tax	9% (7% city tax + 2% venue project tax)[2]Clause Clause Clause
When does the city tax start for short-term rentals?	Late 2026 — 90 to 180 days after June 9, 2026; exact date not yet published[3][4][5]Clause Clause ClauseConfirming
City hotel tax returns	Quarterly to the City Comptroller, by the last day of January, April, July and October[2][5]Clause ClauseConfirming

Watch this market

Want to know when El Paso's rules change?

We watch El Paso's official rule pages, council agendas and Texas legislation. When a change affecting short-term rentals is proposed or passed, we email you what changed, when it takes effect, and a link to the source.

Alerts are free. Own in several cities? Pro will track every rule for your whole portfolio.

No spam. Unsubscribe anytime. See our privacy policy.

Detailed rules

The full picture, section by section

City tax enforcement

Penalties for not collecting or reporting the city tax	Class C misdemeanor, up to $500 per offense; 5% penalty, plus 5% more after 30 days[2]Clause Clause Violating any provision of the hotel tax chapter is a Class C misdemeanor with a fine of up to $500 per offense, and each day a violation continues is a separate offense (El Paso City Code § 3.12.070(A)). Failing to collect the tax, file a report on time or pay on time, or filing a false report, forfeits 5% of the amount due, plus another 5% after the first 30 days, with a minimum penalty of $1 (§ 3.12.070(B)).

Penalties for not collecting or reporting the city tax

Class C misdemeanor, up to $500 per offense; 5% penalty, plus 5% more after 30 days[2]Clause Clause

Violating any provision of the hotel tax chapter is a Class C misdemeanor with a fine of up to $500 per offense, and each day a violation continues is a separate offense (El Paso City Code § 3.12.070(A)). Failing to collect the tax, file a report on time or pay on time, or filing a false report, forfeits 5% of the amount due, plus another 5% after the first 30 days, with a minimum penalty of $1 (§ 3.12.070(B)).

State law that also applies

State hotel occupancy tax	6%[6]Clause Clause Clause Texas Tax Code § 156.052 sets the state hotel occupancy tax at 6% of the price paid for a room, and § 156.051(a) applies it to rooms or spaces costing $15 or more a day. Section 156.001(b) makes a short-term rental (renting all or part of a residential property to someone who is not a permanent resident) a "hotel" for state and local hotel occupancy taxes. Stays of at least 30 consecutive days, with no interruption of payment, are not taxed (§ 156.101). Local hotel taxes are added on top and vary by city and county.
State hotel tax registration required?	Yes — Form AP-102 to the Comptroller, unless a booking platform collects for you[7][6]Clause Clause Clause Clause Whoever owns, operates, manages or controls a hotel must collect the state tax (Tax Code § 156.053), and the Comptroller's office treats short-term rentals the same way. The Comptroller does not issue printed hotel tax permits; a business that reports the tax sends Form AP-102 (Hotel Occupancy Tax Questionnaire) to the Comptroller. A short-term rental platform that has agreed with the owner to collect and remit state hotel tax files Form AP-102 itself, and an owner who rents only through such a platform does not collect and remit the state tax. An owner who takes bookings directly or through a platform that does not collect must collect and remit the state tax. Local hotel taxes are handled separately by the city and county.
State hotel tax returns	Monthly by the 20th; quarterly if you owe under $500 a month or $1,500 a quarter[6][8]Clause Clause Clause Each calendar month is a reporting period, with the return and tax due to the Comptroller by the 20th of the following month (Tax Code § 156.151(b)). A taxpayer who owes less than $500 for a month or $1,500 for a quarter files quarterly, due the 20th day after the quarter ends (§ 156.151(c)). The Comptroller allows a 1% discount when the return is filed and paid on time.
Local hotel taxes	Set by each city (and some counties and districts); paid to the local government[7][8]Clause Clause Clause Cities, some counties and special purpose districts may levy their own hotel taxes, generally up to 7%, and sports or community venue projects may add up to 2% (Dallas County up to 3%). Local hotel taxes apply to sleeping rooms costing $2 or more a day. The Comptroller collects only the 6% state tax; cities and counties collect their own local hotel taxes, so hosts should check with the city and county where the rental is.

Changes

Recent and pending changes

We checked El Paso City Code Chapter 3.12 (Hotel Room Tax) and § 20.02.870.5 on Municode (Supplement 95 Update 4, online August 26, 2026, codified through Ordinance 019889 of June 23, 2026), City Council files 26-0726 and 26-0924, the city's June 9, 2026 news release, Texas Tax Code Chapter 156 and the Texas Comptroller's hotel occupancy tax pages. The September 1, 2026 amendments to Chapter 3.12 are not yet in the online code; we will add their text and the start date for short-term rental collections when the city publishes them.

Feb 3, 2026

Ordinance 019840 — short-term rental added to the zoning codeEnacted[1]Clause

El Paso added a definition of short-term rental (lodging for less than 30 consecutive days in a residential use) to its zoning code, applying the zoning standard for the base residential use and excluding bed and breakfasts.

Jun 9, 2026

Resolution to collect hotel occupancy tax on short-term rentalsEnacted[4][3]Clause Clause

City Council authorized the City Manager to collect hotel occupancy taxes on short-term rentals, with collections to begin 90 to 180 days after adoption.

Sep 1, 2026

Hotel Room Tax amendments for short-term rentalsEnacted[5]Clause

City Council adopted an ordinance amending City Code §§ 3.12.010, 3.12.030 and 3.12.031 to include short-term rentals in the definition of hotel, define short-term rental operators and platforms, and provide for collecting and remitting the hotel occupancy tax on short-term rentals.

Sources

Every rule above links to one of these

El Paso City Code § 20.02.870.5 — Short-term rental (definition; Ord. 019840)
City of El Paso (Municode)
El Paso City Code Chapter 3.12 — Hotel Room Tax (§§ 3.12.010–3.12.080)
City of El Paso (Municode)
News release: Short-Term Rentals in El Paso to Begin Contributing to Hotel Occupancy Taxes (June 9, 2026)
City of El Paso · page updated June 9, 2026
City Council file 26-0726 — Resolution authorizing collection of hotel occupancy taxes on short-term rentals (approved June 9, 2026)
City of El Paso (Legistar)
City Council file 26-0924 — Ordinance amending Chapter 3.12 to add short-term rental language (adopted Sept 1, 2026)
City of El Paso (Legistar)
Texas Tax Code Chapter 156 — Hotel Occupancy Tax
Texas Legislature
Hotel Occupancy Tax FAQs (Texas Comptroller)
Texas Comptroller of Public Accounts
Hotel Occupancy Tax (Texas Comptroller)
Texas Comptroller of Public Accounts

Newsletter

One email a month with STR rule changes across the US markets we track.

No spam. Unsubscribe anytime. See our privacy policy.

Questions

Managing properties in several cities?

Tell us what you're trying to decide and which markets you operate in. We read every message.

Email [email protected]

This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.