Short-Term Rental Laws in Austin, TX (2026)
Short-term rentals are legal citywide in Austin — allowed as an accessory use in every zoning district — but each STR must hold a city operating license ($836.30 for a new license, $385.30 renewal, valid two years as of October 2025). There is no owner-occupancy requirement (a 2023 federal court struck that down), but density is capped: at most two STRs per single-family site with 1,000-foot site-to-site spacing for additional units by the same operator, and generally 10% of units in multifamily buildings; starting July 1, 2026 platforms must delist unlicensed properties on city request. Guests pay 6% state plus 11% city hotel occupancy tax, both collected by platforms like Airbnb and Vrbo for platform bookings. Always confirm current requirements with the city before operating.
Austin STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Short-Term Rental (STR) Operating License |
| Permit fee | $836.30 |
| Renewal | Biennial |
| Owner occupancy required | No |
| Primary residence only | No |
| Total occupancy taxes | ~17% of gross revenue |
| Insurance | Not required. As of October 2025, proof of insurance (and a Certificate of Occupancy) are no longer required for new STR license applications or renewals. |
| Enforcement | Enforcement is handled by Austin Development Services Code Compliance; violations reported via Austin 3-1-1. The city contracted Deckard Technologies (Nov 20, 2025) for enforcement and licensing software; enforcement tools went live Jan 7, 2026, scraping online listings to identify unlicensed STRs. As of April 1, 2026 staff had identified 2,785 unlicensed addresses, issuing 65 notices of violation and 28 citations. A new online licensing system launched May 18, 2026. Platform obligations (license-number display fields; delisting unlicensed properties within 10 days of city notice) take effect July 1, 2026, though the city's April 2026 memo says delist notices will be paused for six months after the May 18, 2026 system launch and then phased in, starting with properties generating nuisance complaints. Enforcement solely for operating without a license is paused while a submitted application is under review. Roughly 2,750 licensed STRs as of March 31, 2026 versus ~15,000 active listings estimated by AirDNA in 2025. |
| Current rules effective | 2025-10-01 |
What will guests pay in taxes on a Austin stay?
Itemized occupancy taxes for Austin, TX — enter your nightly rate to see the real cost breakdown.
Austin occupancy tax calculator
| Gross rent | $450.00 |
| Texas Hotel Occupancy Tax (state) (6%)· usually collected by platform | $27.00 |
| City of Austin Hotel Occupancy Tax (11%)· usually collected by platform | $49.50 |
| Total tax (17%) | $76.50 |
| Guest pays | $526.50 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Austin requires Short-Term Rental (STR) Operating License to operate a short-term rental — the fee is $836.30, renewed biennial.
New license $836.30 total ($789 FY2026 license fee + $47.30 neighbor-notification fee); renewal $385.30 total ($338 renewal fee + $47.30 notification fee). Fees are non-refundable, even if the application is denied. FY2026 fee per official April 2026 memo; the city is evaluating future fee reductions through the budget process.
Zoning & location rules
Since Ordinance No. 20250227-039 (Feb 27, 2025), STRs are an accessory use to all residential uses in all zoning districts with a valid operating license — no zoning districts prohibit licensed STRs. Density limits (effective Oct 1, 2025) replace zoning restrictions: an individual may operate up to two STR units on a single-family site, and additional STRs elsewhere must be at least 1,000 feet apart measured site-to-site; operators on single-family sites must be individuals (not entities). On multifamily sites an owner may license the greater of one unit or 10% of units (25% on mixed-use sites with four or more residential units and at least one commercial use). STRs in Austin's limited-purpose jurisdiction need a license but owe no city HOT; STRs in the ETJ need neither.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Texas Hotel Occupancy Tax (state)6% of the room cost, applies to rentals under 30 days including houses/condos. Airbnb and Vrbo are already required to collect the state portion for bookings on their sites; hosts taking direct bookings must collect and remit to the Texas Comptroller themselves. | 6% | platform |
| City of Austin Hotel Occupancy Tax11% total = 9% occupancy tax + 2% venue project tax. Since April 1, 2025 (Ordinance No. 20250227-041), platforms that collect payment for STR occupancy must collect and remit the city HOT on the operator's behalf. Operators must still file quarterly HOT reports with the city (including zero reports and reporting how much each platform collected), and must collect/remit directly on non-platform (direct) bookings. | 11% | platform |
Enforcement & penalties
Enforcement is handled by Austin Development Services Code Compliance; violations reported via Austin 3-1-1. The city contracted Deckard Technologies (Nov 20, 2025) for enforcement and licensing software; enforcement tools went live Jan 7, 2026, scraping online listings to identify unlicensed STRs. As of April 1, 2026 staff had identified 2,785 unlicensed addresses, issuing 65 notices of violation and 28 citations. A new online licensing system launched May 18, 2026. Platform obligations (license-number display fields; delisting unlicensed properties within 10 days of city notice) take effect July 1, 2026, though the city's April 2026 memo says delist notices will be paused for six months after the May 18, 2026 system launch and then phased in, starting with properties generating nuisance complaints. Enforcement solely for operating without a license is paused while a submitted application is under review. Roughly 2,750 licensed STRs as of March 31, 2026 versus ~15,000 active listings estimated by AirDNA in 2025.
Violations (e.g., operating without a license, exceeding density caps, noise, failure to include the license number in advertising) are punishable by fines of up to $500 per violation, with each day a violation continues a separate offense. Ordinance No. 20250911-012 added authority to require mitigation measures for repeat violators and updated license-revocation procedures for chronic violations, including declaring a property a nuisance. Platforms that fail to delist unlicensed properties after July 1, 2026 face fines of up to $500 per day.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Recent rule changes in Austin
July 1, 2026material
STR platform obligations take effect
Platforms (Airbnb, Vrbo, etc.) must provide a license display field, require valid license numbers in Austin listings, stop facilitating bookings of unlicensed properties, remove unlicensed listings within 10 days of city notice, and provide operators quarterly documentation of HOT collected. Per the city's April 2026 memo, delist notices will be paused for six months after the May 18, 2026 licensing-system launch and then phased in, beginning with nuisance-complaint properties.
Official source →May 18, 2026
New online STR licensing system launched
The city's new Deckard Technologies-built licensing system launched May 18, 2026, intended to speed application processing; staff will evaluate whether efficiencies support lowering STR fees in future budgets.
Official source →January 7, 2026material
Automated enforcement tools went live
Deckard Technologies enforcement software began scraping online listings to identify unlicensed STRs. By April 1, 2026 the city had identified 2,785 unlicensed addresses, issued 65 notices of violation and 28 citations, and prompted 32 new license applications.
Official source →October 1, 2025material
Ordinance No. 20250911-012 operator provisions take effect
Licenses became two-year and non-transferable; license numbers required in all ads/listings; up to two STRs per single-family site with 1,000-foot site-to-site spacing for additional units; multifamily cap cut from 25% to 10% of units (25% retained on mixed-use sites); single-family STR operators must be individuals; tenants may operate STRs with written landlord permission; stronger local-contact rules (respond within 2 hours, contact within 5-county Austin metro); proof of insurance and Certificate of Occupancy dropped from application requirements; neighbor notification now at every renewal.
Official source →September 11, 2025material
Council adopts Ordinance No. 20250911-012 overhauling STR rules
Adopted 10-0 (one abstention): site-based spacing, per-site caps, multifamily/mixed-use owner caps, stronger local contact requirements, mitigation authority for repeat violators, updated revocation/nuisance procedures, and platform display/delisting mandates (platform provisions delayed to July 1, 2026).
Official source →April 1, 2025material
Platforms must collect and remit Austin's 11% hotel occupancy tax
Under Ordinance No. 20250227-041, platforms collecting payment for STR occupancy must collect and remit the city's 11% HOT on operators' behalf beginning April 1, 2025. STR-related HOT revenue rose from $7M in FY2024 to $11.6M in FY2025.
Official source →February 27, 2025material
Three ordinances: STRs allowed citywide, regulation moved to business code, platform tax collection
Ordinance No. 20250227-039 made STRs an accessory use to residential uses in all zoning districts (with a valid license); No. 20250227-040 moved most STR regulation from Title 25 (Land Development) to Title 4 (Business Regulation, Chapter 4-23); No. 20250227-041 required platforms to collect city HOT effective April 1, 2025.
Official source →August 3, 2023material
Federal court strikes down Austin's owner-occupancy-based STR restrictions
Senior U.S. District Judge David Alan Ezra (Anding v. City of Austin) ruled Austin's prohibition on non-owner-occupied (Type 2) STRs in residential areas unconstitutional under the dormant Commerce Clause and unconstitutionally retroactive under Texas law, requiring Type 2 licenses to be available wherever Type 1 licenses are. This ruling drove the 2025 citywide-legalization rewrite.
Official source →
Frequently asked questions
›Is Airbnb legal in Austin?
Yes — Airbnb and other short-term rentals are legal in Austin, TX, but you must obtain a Short-Term Rental (STR) Operating License before operating. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Austin?
Yes. Austin requires a Short-Term Rental (STR) Operating License to operate a short-term rental, which costs $836.30 and must be renewed biennial. Always confirm current requirements with the city before operating.
›How much does a Austin short-term rental permit cost?
The Short-Term Rental (STR) Operating License costs $836.30 (biennial renewal). New license $836.30 total ($789 FY2026 license fee + $47.30 neighbor-notification fee); renewal $385.30 total ($338 renewal fee + $47.30 notification fee). Fees are non-refundable, even if the application is denied. FY2026 fee per official April 2026 memo; the city is evaluating future fee reductions through the budget process.
›Can I Airbnb a non-primary residence in Austin?
Yes — Austin does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Austin?
Hosts in Austin are subject to: Texas Hotel Occupancy Tax (state) (6%), City of Austin Hotel Occupancy Tax (11%) — roughly 17% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›What happens if I operate a short-term rental illegally in Austin?
Violations (e.g., operating without a license, exceeding density caps, noise, failure to include the license number in advertising) are punishable by fines of up to $500 per violation, with each day a violation continues a separate offense. Ordinance No. 20250911-012 added authority to require mitigation measures for repeat violators and updated license-revocation procedures for chronic violations, including declaring a property a nuisance. Platforms that fail to delist unlicensed properties after July 1, 2026 face fines of up to $500 per day. Enforcement is handled by Austin Development Services Code Compliance; violations reported via Austin 3-1-1. The city contracted Deckard Technologies (Nov 20, 2025) for enforcement and licensing software; enforcement tools went live Jan 7, 2026, scraping online listings to identify unlicensed STRs. As of April 1, 2026 staff had identified 2,785 unlicensed addresses, issuing 65 notices of violation and 28 citations. A new online licensing system launched May 18, 2026. Platform obligations (license-number display fields; delisting unlicensed properties within 10 days of city notice) take effect July 1, 2026, though the city's April 2026 memo says delist notices will be paused for six months after the May 18, 2026 system launch and then phased in, starting with properties generating nuisance complaints. Enforcement solely for operating without a license is paused while a submitted application is under review. Roughly 2,750 licensed STRs as of March 31, 2026 versus ~15,000 active listings estimated by AirDNA in 2025.
Austin's STR rules changed 7 times recently.
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Related
Nearby covered cities
- Broken Bow, OKRestricted
- New Orleans, LARestricted
- Destin, FLPermit required
- Nashville, TNPermit required
- Denver, COPrimary residence only
Sources
- Short-Term Rentals — Austin Development Services (official)retrieved July 9, 2026
- Short-Term Rentals program page — AustinTexas.gov (official)retrieved July 9, 2026
- Hotel Occupancy Taxes — Austin Financial Services (official)retrieved July 9, 2026
- City of Austin memorandum: Update on Short-term Rental Program (Apr 30, 2026) (official)retrieved July 9, 2026
- Texas Comptroller — Hotel Occupancy Tax (official, state)retrieved July 9, 2026
- Austin Monitor — Council OKs new rules for short-term rentals (Sept 2025)retrieved July 9, 2026
- KUT — Federal court strikes down Austin's short-term rental rules as unconstitutional (Aug 2023)retrieved July 9, 2026
- Avalara MyLodgeTax — Austin enacts new rules for STR operators and marketplaces (Oct 2025)retrieved July 9, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Austin and a qualified professional before operating.