Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Connecticut tax professional before filing.
Connecticut · USA · Short-term rental taxes
Short-Term Rental Taxes in Connecticut
Short term rental taxes in Connecticut: a statewide 15% room occupancy tax (11% for B&Bs) that Airbnb collects, state income tax of 2%–6.99% on your net rent, and town-level permits in some places.
The 30-Second Answer
- Short term rental taxes in Connecticut centre on the state room occupancy tax: 15% of the charge for stays of 30 consecutive days or less, or 11% for bed and breakfast establishments. The Department of Revenue Services (DRS) administers it statewide.
- Since October 1, 2019, short-term rental facilitators such as Airbnb must collect and remit the tax on bookings they facilitate. If you rent only through facilitators you do not need to register; any direct booking means registering on myconneCT and filing Form OP-210.
- Net rental income is taxed federally and by Connecticut at 2%–6.99% (2025 schedule). Nonresidents who own a Connecticut rental file Form CT-1040NR/PY to report that Connecticut-source income.
- There is no statewide STR licence, but towns can regulate: Stonington requires annual registration and a number of towns, including East Haven, require a permit. Check your town before listing.
Deductions
What Connecticut STR Hosts Can Deduct
Connecticut income tax starts from your federal adjusted gross income, so the expenses you deduct on Schedule E or C also reduce your Connecticut tax.
Room occupancy tax you collect and pass to DRS is not income if you track it separately. For a shoreline or lake house you also use yourself, split costs between rental and personal days under IRC §280A.
Filing Calendar
Key Dates & Filing Calendar
Direct-booking hosts file room occupancy tax on a DRS-assigned schedule; income taxes follow the annual federal and Connecticut calendar.
A late room occupancy tax payment costs 15% of the tax or $50, whichever is greater, plus interest of 1% a month. If you register for direct bookings, put the OP-210 due dates in your calendar.
Connecticut Department of Revenue Services — Room Occupancy Tax Information (portal.ct.gov/drs)
Income Tax Treatment
Schedule E or Schedule C for a Connecticut STR?
Connecticut has no separate rental regime — your federal classification carries into your Connecticut return through federal adjusted gross income.
Passive rental — Schedule E
The usual route for vacation rentals
- Report rents and expenses on Schedule E; the net flows through federal AGI to Form CT-1040.
- No self-employment tax on net rental income.
- Depreciate the building over 27.5 years and furnishings over 5 years.
- Losses are generally passive; the $25,000 allowance phases out between $100,000 and $150,000 of AGI.
No income ceiling; passive loss rules apply
Active business — Schedule C
For inn-style operations
- Applies when the average stay is 7 days or less and you provide substantial services such as daily housekeeping or breakfast.
- Net profit carries self-employment tax (15.3% up to the 2026 wage base of $184,500).
- The federal QBI deduction (Section 199A) may apply.
- A true bed and breakfast also charges the lower 11% occupancy rate rather than 15%.
No income ceiling; SE tax on profit up to $184,500
Depreciation
Depreciation for Connecticut STR Properties
Depreciation is a federal calculation that reaches your Connecticut return through federal adjusted gross income.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential rental building | 27.5 years (straight-line) | Exclude land; use the town assessment's land/building split or an appraisal to support the allocation. |
| Furniture, beds & appliances | 5 years (MACRS) | Federal bonus depreciation is a permanent 100% for property acquired after January 19, 2025. |
| Heating system or roof replacement | 27.5 years | Major building components are improvements, not repairs — common in older New England housing stock. |
| Docks, decks, driveways & fencing | 15 years (MACRS) | Land improvements are depreciated separately from the house. |
Ask your preparer whether any Connecticut modifications to federal AGI apply to your depreciation before claiming large first-year deductions.
On sale, depreciation is recaptured federally at up to 25% (unrecaptured Section 1250 gain); the gain is also included in Connecticut income at your Connecticut rate.
Occupancy Tax
Connecticut Room Occupancy Tax
Connecticut taxes short-term stays at the state level: one statewide room occupancy rate for vacation rentals and a lower rate for bed and breakfasts.
The room occupancy tax applies to the total charge for occupancy of 30 consecutive calendar days or less; from day 31 the tax no longer applies. Short-term home rentals are taxed at the same 15% rate as hotels and motels.
15% (11% for bed and breakfasts)
Connecticut DRS — Room Occupancy Tax Information and Special Notice 2019(9) (portal.ct.gov/drs)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects the 15% (or 11% B&B) tax, including on cleaning fees, for the first 30 nights of a reservation and remits it to DRS | Keep Airbnb's tax reports; no Connecticut registration needed if all bookings go through facilitators |
| Vrbo or Booking.com booking | A short-term rental facilitator (at least $250,000 in annual facilitated sales and collecting payment) must collect and remit | Confirm in your dashboard that the vacation rental tax is charged; if it is not, the obligation is yours |
| Direct booking | You register on myconneCT, charge the guest 15% (11% for a B&B) and file Form OP-210 | Show the tax separately on the invoice and hold it apart from rent until you remit |
Towns set their own zoning and permit rules for short-term rentals, but the lodging tax on the booking is the state room occupancy tax administered by DRS.
Platforms
Airbnb Tax in Connecticut and Other Platforms
Connecticut's facilitator law puts occupancy tax collection on large platforms — income reporting stays with you.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Form 1099-K when 2026 payouts exceed $20,000 and 200 transactions | Yes — 15% (11% B&B) room occupancy tax on the first 30 nights | Earnings summary in the host dashboard; tax forms by January 31 |
| Vrbo | Form 1099-K above the same federal thresholds | Must collect if it meets Connecticut's facilitator definition — confirm on your listing | Annual payout summary in the owner dashboard |
| Direct bookings | No platform reporting | No — register on myconneCT and remit yourself | Your own booking ledger |
Listing on Several Platforms?
If even one booking comes to you directly, you must register for the room occupancy tax — the exemption only covers hosts who rent exclusively through facilitators. The 1099-K threshold is tested per platform, so total your payouts across every channel yourself.
US Reporting: Form 1099-K, Not DAC7
DAC7 is an EU rule and does not apply in Connecticut. US platforms report on Form 1099-K once payouts exceed $20,000 and 200 transactions in a year; Form 1099-MISC/NEC uses a $2,000 threshold for payments after December 31, 2025. All rental income is taxable whether or not a form is issued.
Airbnb Help Center — Occupancy tax collection in Connecticut (airbnb.com/help/article/2299); Connecticut DRS Special Notice 2019(9)
Illustrative P&L — Shoreline Cottage
Example for a Connecticut shoreline cottage grossing $45,000 a year (occupancy tax excluded). For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What Connecticut Hosts Should Keep
DRS can audit room occupancy tax, the IRS and DRS can audit your income tax, and your town may check permit compliance.
| Keep | How long | Why |
|---|---|---|
| Platform tax reports showing occupancy tax collected | At least 3 years after filing | Proves the facilitator, not you, owed the tax on those bookings |
| Form OP-210 returns and payment confirmations | At least 3 years after filing | Supports direct-booking tax remitted to DRS |
| Booking log with stay lengths | At least 3 years | Shows which stays were 30 days or less and taxable, and your rental vs personal days |
| Expense receipts and 1099-Ks | At least 3 years (6 if income may be understated by 25%+) | Substantiates Schedule E deductions for federal and Connecticut purposes |
| Purchase records and depreciation schedules | Until 3 years after you sell | Needed to compute basis and depreciation recapture |
Keep a copy of your town permit or registration with your tax file — if a guest complaint triggers a town review, you can show compliance straight away.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Rates verified September 2026 at the official pages below. Educational information only — confirm current rules with DRS, your town and a qualified Connecticut tax professional before filing.
- Connecticut DRS — Room Occupancy Tax Information — 15% and 11% rates, 30-day rule, registration and $100 fee, Form OP-210, penalties. portal.ct.gov/drs/taxes/room-occupancy/tax-information
- Connecticut DRS — Special Notice 2019(9), Room Occupancy Tax on Short-Term Rentals — Facilitator collection from October 1, 2019; $250,000 facilitator threshold; host registration exemption. portal.ct.gov/-/media/DRS/Publications/pubssn/2019/SN-2019(9).pdf
- Airbnb Help Center — Occupancy tax collection in Connecticut — 15% (11% B&B) collected on the first 30 nights. airbnb.com/help/article/2299
- Connecticut DRS — 2025 Form CT-1040 Tax Calculation Schedule — Rates from 2% to 6.99%. portal.ct.gov/-/media/drs/forms/2025/income/ct-1040-tcs_1225.pdf
- Connecticut DRS — Resident income tax information — CT-1040 filing and CT-1040NR/PY for nonresidents with Connecticut-source income. portal.ct.gov/drs/individuals/resident-income-tax/tax-information
- Connecticut General Assembly OLR — Municipal Regulation of Short-Term Rentals (2024-R-0044) — Stonington registration; towns with STR permit requirements. cga.ct.gov/2024/rpt/pdf/2024-R-0044.pdf
- Town of East Haven — Short-Term Residential Rentals Ordinance — Permit requirement and renewal. easthaven-ct.gov/434/Short-Term-Residential-Rentals-Ordinance
- IRS — Publication 527, Residential Rental Property — Schedule E reporting, depreciation and personal-use rules. irs.gov/publications/p527
Questions
Frequently Asked Questions — Connecticut STR Taxes
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