Airbnb, VRBO, and Booking.com each handle tax remittance differently — and none of them cover every obligation a Texas host carries.
Based on 2026 Texas Comptroller rates and local HOT ordinances across 254 counties.
Why Deadlines Differ by Platform
Airbnb remits the 6% state hotel occupancy tax automatically in Texas. VRBO does the same. But roughly 40% of local jurisdictions still require hosts to file and pay city or county taxes separately, regardless of which platform collected the booking.
Missing a quarterly local filing triggers a 5% penalty on day one. That penalty compounds. Short term rental taxes in Texas catch hosts off guard not because the rates are high, but because the filing calendar fragments across state and local levels with no single reminder system.
Cross-reference every active listing against the Texas Comptroller's hotel tax page to confirm which taxes your platform actually covers — and which ones you still owe directly.
What expenses can STR hosts deduct on their federal return?
Cleaning fees, property management software, mortgage interest, insurance premiums, repairs, and depreciation all qualify — but only for the portion of time the property is rented. A property rented 200 out of 365 days means roughly 55% of shared expenses are deductible. Personal-use days reduce that ratio fast.
Does Airbnb collect Texas hotel occupancy tax automatically?
Airbnb remits the 6% state hotel occupancy tax on behalf of hosts for Texas bookings. VRBO does the same. Booking.com, however, doesn't always collect it — hosts using that platform should verify their account settings and confirm with the Texas Comptroller's office whether they need to remit directly.
Do hosts still owe local occupancy taxes if the platform collects state tax?
Yes. Platform collection covers state-level tax only. Most Texas cities and counties impose their own occupancy taxes ranging from 2% to 9%. San Antonio charges 9%. Austin charges 11% combined with the state portion. Hosts are responsible for registering with each local jurisdiction and filing separately.
When does hiring a CPA make sense?
Once a host operates two or more properties — or earns above $50,000 annually from rentals — the complexity of cost segregation, depreciation schedules, and multi-jurisdiction filings justifies professional help. A single-property host earning under $25,000 can often handle filings with tax software, though mistakes on Schedule E still trigger audits at a higher rate than W-2 income.
What records should hosts keep and for how long?
Platform payout statements, receipts for every deductible expense, guest stay logs with dates, and local tax filing confirmations. The IRS requires three years minimum from the filing date, but keeping seven years protects against fraud-related audits. Digital copies stored in cloud backup count — paper isn't required.
Not Sure What You Owe?
Mr Props helps Texas STR hosts sort out state and local tax obligations before filing deadlines hit. Get a property-specific tax breakdown without the guesswork.