Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Pennsylvania tax professional before filing.
Pennsylvania · United States · Short-term rental taxes
Short-Term Rental Taxes in Pennsylvania
Pennsylvania STR hosts owe the state Hotel Occupancy Tax on every booking under 30 days, plus federal and state income tax on net rental profits.
The 30-Second Answer
- Pennsylvania Hotel Occupancy Tax (HOT) applies to all rentals of rooms, apartments, or houses for fewer than 30 consecutive days — the rate is 6% statewide, matching the sales tax rate.
- Allegheny County adds 1% and Philadelphia adds 2% on top of the state 6%, collected and remitted through the PA Department of Revenue via myPATH; some other counties levy additional local hotel taxes collected by the county treasurer.
- STR income is reported on your PA-40 (Pennsylvania Personal Income Tax return) — short-term rentals (under 30 days) are typically classified as business income rather than passive rental income under PA rules.
- If your booking platform (e.g., Airbnb or Vrbo) confirms it collects and remits the HOT on your behalf, you generally do not need to register for a Sales, Use, and Hotel Occupancy Tax License — but verify this with your platform before assuming.
Deductions
Expenses You Can Deduct Against PA Rental Income
Pennsylvania follows federal rules on most rental deductions, but has its own differences — notably, PA does not allow passive loss carryovers or at-risk rules.
Pennsylvania personal income tax does not have passive loss rules (IRC §469) or at-risk rules (IRC §465), so losses cannot be carried over to future years for PA purposes. Depreciation rules also differ from federal — consult a PA-licensed CPA for property-specific guidance.
Filing Calendar
Key Dates & Filing Calendar
Pennsylvania HOT returns are filed electronically via myPATH; frequency depends on your tax liability. PA personal income tax follows the standard April deadline.
HOT returns must be filed and paid electronically through myPATH (mypath.pa.gov). Filing frequency (monthly or quarterly) is assigned by the Department of Revenue after registration.
PA Department of Revenue — Home-sharing/Third-party Broker Rentals (pa.gov, 2024)
Income Tax Treatment
How Is Your STR Income Classified in Pennsylvania?
Unlike some states, Pennsylvania does not offer a simplified flat-rate deduction regime. Instead, the classification of your rental income determines which PA-40 schedule applies and what deductions you can claim.
Business Income (Short-Term Rentals)
Applies to most PA STR hosts renting for fewer than 30 days
- Pennsylvania classifies STR income (rentals under 30 days) as net income from the operation of a business, profession, or farm — not passive rental income.
- Reported on PA-40 Schedule C (Net Profit from Business or Profession) or the applicable business schedule.
- All ordinary and necessary business expenses are deductible against gross rental receipts.
- PA does not allow passive loss carryovers — unused losses cannot offset future years' income for PA purposes.
No threshold — applies based on rental period, not revenue
Rental Income (Long-Term / Mixed Use)
Applies if you rent to the same guest for 30+ days
- Rentals of 30 days or more to the same person are treated as net income (loss) from rents, royalties, copyrights, and patents under PA law.
- Reported on PA-40 Schedule E (Rents and Royalties).
- Hotel Occupancy Tax does NOT apply to stays of 30 days or more.
- PA still does not allow passive loss rules or at-risk rules — differences from federal treatment apply here too.
Rental period of 30 days or more to the same person
Depreciation
Depreciation for Pennsylvania STR Hosts
Federal depreciation rules (IRS) apply for your federal return; Pennsylvania has its own depreciation rules that can differ — always reconcile both.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential rental building (federal) | 27.5 years (straight-line) | Standard federal MACRS period for residential rental property; PA may not conform to all federal bonus depreciation elections. |
| Furniture & appliances | 5–7 years (federal MACRS) | Personal property used in the rental; PA depreciation rules may differ from federal — verify with a PA CPA. |
| Land improvements (e.g., driveway, landscaping) | 15 years (federal MACRS) | Land itself is never depreciable. PA may not conform to federal bonus depreciation for improvements. |
Pennsylvania does not automatically conform to federal bonus depreciation (IRC §168(k)) or Section 179 expensing in all cases. Hosts should prepare separate PA depreciation schedules. Consult a PA-licensed tax professional.
When you sell a PA STR property, gain or loss is reported on PA-40 Schedule D. PA does not have the same passive loss or at-risk rules as federal, so the gain calculation may differ from your federal return.
Hotel Occupancy Tax
Pennsylvania Hotel Occupancy Tax (HOT) for STR Hosts
Pennsylvania's HOT applies to all rentals under 30 days. The statewide rate is 6%, with additional local rates in Allegheny County, Philadelphia, and many other counties.
The Pennsylvania Hotel Occupancy Tax is imposed at the same rate as the state sales tax (6%) on room rental charges for periods of fewer than 30 days. Additional county-level taxes may apply depending on where your property is located.
6% (state) + local add-ons; up to 8% in Philadelphia
PA Department of Revenue — Sales, Use and Hotel Occupancy Tax & Home-sharing page (pa.gov, 2024)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Booked via platform that collects HOT (e.g., Airbnb in PA) | Platform collects from guest and remits to PA Dept. of Revenue on host's behalf | You do not need a HOT license for these bookings; do not double-count HOT as your revenue |
| Booked directly or via platform that does NOT collect HOT | Host must register, collect from guest, and remit via myPATH | Register at mypath.pa.gov before first booking; file returns on assigned schedule |
| Mixed bookings (some platform, some direct) | Host must register and remit HOT on all non-platform-collected bookings | Keep detailed records distinguishing platform-collected vs. host-collected HOT |
County-level hotel tax rates vary across Pennsylvania's 67 counties. Check current rates with the PA Department of Community and Economic Development (DCED) county tax summary or your county treasurer.
Platforms
How Airbnb, Vrbo & Other Platforms Handle PA Taxes
Major platforms may collect and remit Pennsylvania's Hotel Occupancy Tax on your behalf — but you must verify this with each platform, as it is not universally guaranteed.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — Form 1099-K (if thresholds met) or 1099-MISC to IRS and PA | Yes — Airbnb collects and remits PA HOT in Pennsylvania | Annual earnings summary available in host dashboard |
| Vrbo / HomeAway | Yes — Form 1099-K (if thresholds met) to IRS | Verify directly with Vrbo — collection agreements vary by jurisdiction | Annual earnings summary available in host dashboard |
| Direct bookings | No platform reporting — host responsible for all tax records | No — host must collect HOT from guest and remit via myPATH | Host must maintain own records |
Using Multiple Platforms?
If you use more than one booking platform, or mix platform bookings with direct bookings, you must track HOT collection separately for each channel. If any channel does not collect HOT, you must register for a PA Sales, Use, and Hotel Occupancy Tax License and remit for those bookings. Add all income from all platforms when calculating your PA-40 income tax.
US 1099 Reporting (Not EU DAC7)
Pennsylvania is a US state — EU DAC7 rules do not apply. US platforms report income via IRS Form 1099-K (gross payments over applicable thresholds) and Form 1099-MISC (other income over $600 in 2025). The 1099-K threshold for 2025 remains above $20,000 and 200 transactions for most platforms, though IRS rules are evolving.
Airbnb Help Center — US tax documents from Airbnb (airbnb.com, 2024); PA Department of Revenue — Home-sharing page (pa.gov, 2024)
Illustrative P&L: PA STR Business Income
Example only — a host earning $30,000 gross with $12,000 in deductible expenses. PA flat income tax rate of 3.07% applied for illustration. Not tax advice.
Record-Keeping
Stay Audit-Ready: What PA STR Hosts Should Keep
Good records protect you in both a PA Department of Revenue HOT audit and an IRS income tax audit. Keep everything organized by tax year.
| Keep | How long | Why |
|---|---|---|
| Booking records (dates, guest names, nightly rates, platform statements) | At least 4 years | PA statute of limitations for tax assessments is generally 3 years; keep an extra year as a buffer |
| HOT collection and remittance records (myPATH filings, receipts) | At least 4 years | Required to demonstrate compliance with PA Hotel Occupancy Tax obligations |
| Expense receipts (repairs, cleaning, supplies, insurance, utilities) | At least 4 years | Substantiates deductions claimed on PA-40 and federal Schedule E/C |
| Platform 1099-K / 1099-MISC forms | At least 4 years | Cross-referenced by IRS and PA against your reported income |
| Property purchase documents, improvement records, depreciation schedules | As long as you own the property + 4 years after sale | Needed to calculate gain/loss on PA-40 Schedule D when you sell |
Pennsylvania does not allow passive loss carryovers — unlike federal, you cannot carry unused rental losses forward. This makes accurate annual record-keeping especially important so you claim all allowable deductions in the correct year.
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
This page is for educational purposes only and does not constitute tax advice. Tax laws change — always verify current rates and rules with the PA Department of Revenue or a qualified PA tax professional.
- PA Department of Revenue — Home-sharing/Third-party Broker Rentals — Official PA guidance on Hotel Occupancy Tax for STR hosts, registration, and platform collection. pa.gov, 2024.
- PA Department of Revenue — Sales, Use and Hotel Occupancy Tax — Overview of PA HOT rates (6% state; +1% Allegheny; +2% Philadelphia) and applicability to short-term rentals. pa.gov, 2024.
- PA Department of Revenue — Net Income (Loss) from Rents, Royalties, Copyrights and Patents (PA Personal Income Tax Guide) — Official PA guidance on classification of STR income as business income (under 30 days), passive loss rules, and PA-federal differences. pa.gov, 2024.
- Airbnb Help Center — US tax documents from Airbnb — Details on 1099-K, 1099-MISC, and 1099-NEC issuance thresholds and timing for US hosts. airbnb.com, 2024.
- Trout CPA — The Ultimate Rental Property Deduction Checklist — Pennsylvania CPA firm guidance on rental property deductions including mortgage interest, property taxes, repairs, and management fees. troutcpa.com, 2024.
- Pennsylvania Association of Realtors — Hotel occupancy tax: What short-term rental owners need to know — Background on PA HOT applicability to STR hosts and platform collection. parealtors.org, 2017.
Questions
Frequently Asked Questions: PA Short-Term Rental Taxes
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