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PrepBnB · Compliance

Texas · Short-Term Rental Compliance

Austin Short-Term Rental Permit Guide

Austin requires every short-term rental to hold an STR Operating License in one of three types: Type 1 (owner-occupied), Type 2 (non-owner-occupied whole home, capped at 3% of single-family units per census tract), or Type 3 (multi-family). As of October 1, 2025 licenses are biennial (two-year), proof of insurance and certificate of occupancy are no longer required at application, and tenants may operate with landlord permission. Platforms collect and remit the 11% city Hotel Occupancy Tax on all bookings effective April 1, 2025.

Permit
Short-Term Rental Operating License (Type 1 / Type 2 / Type 3)
Annual fee
$836
Occupancy tax
17%
Fine range
$500–$2,000 per violation; up to $500/day for unlicensed operation

Informational only — not legal advice. Our information can be wrong or out of date. Always confirm with Austin directly before applying, paying, or accepting bookings. We do not file applications or returns on your behalf.

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What the city requires

Requirements checklist

  • 1
    STR Operating License
    New license $836.30 ($789 license + $47.30 notification). Renewal $385.30. License is valid for 2 years as of Oct 1, 2025.
  • 2
    Hotel Occupancy Tax (HOT)
    11% city (9% base + 2% venue) + 6% Texas state = 17% total. Platforms (Airbnb/VRBO/Expedia/Booking.com) are required to collect and remit the 11% city portion effective April 1, 2025.
  • 3
    Local contact
    Licensee must designate a contact physically present in the Austin Metro Area (Travis, Williamson, Hays, Bastrop, Caldwell) who can respond to emergencies within 2 hours. Updates must be filed within 3 business days.
  • 4
    Occupancy + safety
    Max 2 adults per bedroom plus 2 additional adults. Smoke detectors, fire extinguishers, posted emergency exits required. Certificate of occupancy NOT required as of Oct 1, 2025.
  • 5
    Zoning + density
    Type 2 limited to 3% of single-family units per census tract. Two STR units per single-family site allowed; additional units must be 1,000+ ft apart. Type 3 capped at 3% non-commercial / 25% commercial.
  • 6
    Platform compliance (effective July 1, 2026)
    License number must appear in all platform listings. Platforms must delist unlicensed properties within 10 days of city notice and cannot accept booking fees for unlicensed STRs.

Verified April 2026 against austintexas.gov (STR services, HOT FAQ, code amendments news release) and Austin City Code §§ 25-2-791 through 25-2-794. Major Oct 2025 changes: biennial licenses, insurance + COO waivers, tenant operators allowed. As of March 2026 roughly 2,200 of ~15,000 active listings are licensed; city plans data-scraping contract + platform delisting push by July 2026.

Official filing portal: https://financeonline.austintexas.gov/afo/account_services/hotel/

Other jurisdictions

Operating in more than one city?

Informational only — not legal advice. STR ordinances change frequently, sometimes mid-year. Always verify current requirements with Austin before applying for a permit or accepting a booking.

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