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The Daily Insight

Does Airbnb collect state and local taxes?

Author

James Craig

Published Apr 08, 2026

In areas that Airbnb has made agreements with governments or is required by law to collect and remit local taxes on behalf of hosts, Airbnb calculates these taxes and collects them from guests at the time of booking. Airbnb then remits collected taxes to the applicable tax authority on the hosts’ behalf.

Does Airbnb collect tourist tax?

Guests who book Airbnb listings that are located in the City of Pacific Grove, California will pay the following tax as part of their reservation: Transient Occupancy Tax: 12% of the listing price including any cleaning fees, for reservations 30 nights and shorter.

Do large hotels support the Airbnb tax?

Several large American cities with a large Airbnb presence rely heavily on lodging taxes. Airbnb has largely blocked the ability of these cities to transparently collect lodging taxes on Airbnb rentals that are equivalent to lodging taxes on hotel rooms….

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Airbnb collects all county sales taxes and some county tourist taxes.

Is Airbnb tax exempt?

With the California sales tax rate at 7.5 percent, owed state taxes (California does not have a state lodging tax) from Airbnb in these three cities alone total nearly $40 million. Some states have entered into an agreement with Airbnb to require the site to collect and remit taxes on behalf of hosts.

How does Airbnb collect taxes for your area?

For example, Airbnb may collect regional taxes but not local ones in some places. Also, Airbnb is not responsible for any tax collection errors due to typos. Go to Your Listings on airbnb.com and select a listing If we collect taxes for your area, you’ll see a default tax collection setting on the page

Can a host refuse to accept a reservation on Airbnb?

If a hosts believes applicable laws exempt the host from collecting a tax that Airbnb collects and remits on the host’s behalf, the host has agreed that, by accepting the reservation, the host is waiving that exemption. If a host does not want to waive an exemption the host believes exists, the host should not accept the reservation.

Can a host waive tax on a reservation?

If a host does not want to waive an exemption the host believes exists, the host should not accept the reservation. Hosts also have the ability to add other taxes (e.g. local tax or value added tax) to their listings in accordance with the laws in applicable jurisdictions.

How is occupancy tax collection and remittance available?

Thank you. In what areas is occupancy tax collection and remittance by Airbnb available? In areas that Airbnb has made agreements with governments or is required by law to collect and remit local taxes on behalf of hosts, Airbnb calculates these taxes and collects them from guests at the time of booking.