Licensed & enforced

Austin Short-Term Rental Rules: What Hosts Need to Know in 2026

Austin licenses short-term rentals under three license types and now issues them for two years. Hosts must also file a quarterly hotel occupancy tax report, even when a booking platform collects the tax for them.

The date that matters most: from July 1, 2026, platforms must display a license number on each listing and delist unlicensed listings at the city’s request.

Austin changed its STR rules twice in 12 months

February 2025 made short-term rentals an allowed accessory use in every residential zone, as long as the operator holds a valid license. October 2025 rewrote the license itself: two-year terms, no certificate of occupancy, no insurance proof, and tenants allowed to operate with the owner’s consent.

The next deadline is operational rather than legislative. From July 1, 2026, booking platforms must show license numbers and remove unlicensed listings when the city asks — the point at which an unlicensed host loses distribution, not just a court date.

Key date: Unlicensed listings get delisted

  • 2025-02: STRs became a permitted accessory use in every residential zone, provided the operator holds a valid license.
  • 2025-10: licenses now run 2 years; certificate of occupancy and insurance proof are no longer required; tenants may operate with the owner’s consent.
  • A single-family lot may hold at most 2 STR units per person; units on other lots must be 1,000 feet apart.
  • 2026-07-01: platforms must display license numbers and delist unlicensed listings at the city’s request — the enforcement cliff.
  • FY2026-27 fees took effect October 1, 2026: a new license costs $736.60 ($642.00 license fee plus a $94.60 neighbor notification fee) and a renewal $369.60 ($275.00 plus the same notification fee) — the same for all three license types.
  • Every renewal requires notifying neighbors within 100 feet, at the licensee’s expense — the $94.60 notification fee is charged again at each renewal.

The three license types

Austin issues three license types. Fees are the same for all three: a new 2-year license costs $736.60 ($642.00 license fee plus a $94.60 neighbor notification fee), and a renewal costs $369.60 ($275.00 plus the same $94.60 notification fee, charged at every renewal). The scarce licenses are the Type 2 and Type 3 permits subject to the census-tract cap.

Type 1 — Owner-occupied

The owner-occupied tier. Licenses are valid 2 years, like Type 2 and Type 3.

Type 2 — Non-owner-occupied (single-family)

For single-family investment properties. New licenses are capped at 3% of the housing stock in each census tract, so most tracts are full and open only a waitlist; an existing Type 2 license can be worth $50K-$100K because it attaches to the property.

Type 3 — Non-owner-occupied (multifamily)

For multifamily properties. Type 3 shares the same fees and the same 3% per-census-tract cap as Type 2.

Permit
STR Operating License (Type 1 / Type 2 / Type 3)
Term
2 years (changed from 1 year effective October 2025)
Portal
Austin Build + Connect (abc.austintexas.gov)
Processing
Several weeks; a new application and license management tool launches in spring 2026.

License fees

License fees
Label Fee
New license $736.60
Renewal $369.60

The July 1, 2026 enforcement cliff

From July 1, 2026, platforms must display a license number for each listing and remove unlicensed listings when the city asks. Operating without a license already carries daily penalties; after that date it also means losing platform distribution.

Violations are priced per violation and per day, and repeat violations accumulate: three within 24 months end in mandatory revocation.

  • Unlicensed operation: up to $2,000 per day, plus platform delisting from July 2026.
  • Other violations: $500-$2,000 per violation, per day.
  • Three violations within 24 months: mandatory license revocation.
Penalties for violations
ItemPenalty
Violations$500-$2,000 per violation, per day.
Unlicensed operationUp to $2,000 per day, plus platform delisting starting July 2026.
RevocationThree violations within 24 months trigger mandatory revocation.

Hotel Occupancy Tax: you still file (even at zero)

Combined hotel occupancy tax ~17%

The combined hotel occupancy tax is about 17%: a 6% state hotel tax plus an 11% city hotel tax that includes the 10% venue district.

Platforms collect and remit the tax on stays of 29 nights or less; stays of 30 nights or more are reported by the owner.

Owners must file a quarterly report with the city’s Financial Services division through an Austin Finance Online account, whether or not a platform collected the tax — and even when there were no bookings at all.

Third-party sources put the Austin hotel tax between 13% and 17% because of how the venue district is counted. The rate on your AFO account controls.

Collection
Platforms collect and remit for stays of 29 nights or less; owners report stays of 30 nights or longer.
Filing
Quarterly report to Austin Financial Services through an AFO account, including zero reports.

Ranges vary — verify. Third-party sources list the hotel tax at 13%-17% depending on how the venue district is treated. Verify the rate on your AFO account.

Operating rules quick list

Occupancy
2 adults per bedroom plus 2, or 10 people — whichever is lower.
Quiet hours
Quiet hours run from 10 p.m. to 7 a.m.
Events
Weddings and commercial gatherings are prohibited.
Information packet
An information packet must be kept in the unit covering the contact, noise, parking, trash, burn-ban, and ADA information.
Insurance
No longer required for new applications or renewals (dropped in October 2025).
Trash
Wildlife-resistant trash containers are required.

Permit notes

Density caps
Type 2 and Type 3 licenses are capped at 3% of the housing stock in each census tract. Once a tract is full the city opens a waitlist, so new licenses are almost impossible to obtain; an existing Type 2 license can be worth $50K-$100K because it is tied to the property.
Local contact
The licensee must live in the Austin metro area (Travis, Williamson, Hays, Bastrop, or Caldwell County) and respond within 2 hours in an emergency.

Compare Austin with other STR markets

Nashville splits permits into owner-occupied and investor tiers, limits investor permits to listed zoning districts, and caps them per census block. Phoenix operates under state preemption, with no night caps and a flat annual permit.

Phoenix

Arizona

Allowed citywide with permit (state law bars city bans — host-friendly)

Low–moderate enforcement

New license $250

Last verified

View Phoenix rules →

Scottsdale

Arizona

Licensed; Arizona law preempts local bans and occupancy caps

Moderate enforcement

New license $250

Last verified

View Scottsdale rules →

Sedona

Arizona

Permit required; Arizona law sets the regulatory floor

Moderate enforcement

New license $210

Last verified

View Sedona rules →

Los Angeles

California

Allowed in the host’s primary residence with registration; 120-night annual cap unless extended

High enforcement

New license $441

Last verified

View Los Angeles rules →

Palm Springs

California

Allowed in single-family homes with an annual certificate; new certificates capped at 20% per organized neighborhood

High enforcement

New license — Vacation Rental $1,046

Last verified

View Palm Springs rules →

San Diego

California

Licensed by tier; whole-home licenses are capped by ordinance

High enforcement

New license — Tier 1 — Part-Time $193

Last verified

View San Diego rules →

San Francisco

California

Allowed only in the host’s permanent residence with registration; un-hosted stays capped at 90 nights per year

High enforcement

New license $925

Last verified

View San Francisco rules →

Santa Monica

California

Home-sharing only in the host’s primary residence; un-hosted vacation rentals are unlawful

High enforcement

New license $582.25

Last verified

View Santa Monica rules →

Denver

Colorado

Licensed, primary residence only

High enforcement

New license $150

Last verified

View Denver rules →

Washington

District of Columbia

Licensed, primary residence only

High enforcement

New license $99

Last verified

View Washington rules →

Fort Lauderdale

Florida

Licensed and inspected; annual Certificate of Compliance required

High enforcement

New license — Certificate of Compliance $880

Last verified

View Fort Lauderdale rules →

Miami

Florida

Licensed and enforced; city and county requirements run in parallel

High enforcement

Last verified

View Miami rules →

Orlando

Florida

Owner-occupied home sharing; whole-home rentals are limited by zoning

Moderate enforcement

New license — Home Sharing Registration $275

Last verified

View Orlando rules →

Tampa

Florida

State-licensed; city rental registration repealed in 2023

Low–moderate enforcement

New license $230

Last verified

View Tampa rules →

Atlanta

Georgia

Licensed, primary residence plus one additional dwelling unit

High enforcement

New license $150

Last verified

View Atlanta rules →

Savannah

Georgia

Certified STVR, overlay district only, per-ward cap

High enforcement

New license $400

Last verified

View Savannah rules →

Chicago

Illinois

Registered shared housing unit (31 days or fewer)

High enforcement

New license $250

Last verified

View Chicago rules →

New Orleans

Louisiana

Licensed, capped, and lottery-based

High enforcement

New license — NSTR owner permit $500

Last verified

View New Orleans rules →

Boston

Massachusetts

Registered, owner-occupied primary residence only

High enforcement

New license — Limited Share $25

Last verified

View Boston rules →

Las Vegas

Nevada

Licensed; owner-occupied homes only (city limits)

High enforcement

New license $500

Last verified

View Las Vegas rules →

New York

New York

Legal only in a registered primary residence (hosted stays)

High enforcement

New license $145

Last verified

View New York rules →

Portland

Oregon

Permitted as an accessory use (primary residence required)

Moderate enforcement

Last verified

View Portland rules →

Charleston

South Carolina

Licensed, primary residence only (commercial STRs only in the overlay district)

High enforcement

New license $345

Last verified

View Charleston rules →

Nashville

Tennessee

Allowed with permit; heavy zoning restrictions on investor units

High enforcement

New license $313

Last verified

View Nashville rules →

Seattle

Washington

Licensed; up to two units per operator

High enforcement

New license $75

Last verified

View Seattle rules →

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Frequently asked questions

Do I need a license to run an Airbnb in Austin?

Yes — Type 1 (owner-occupied), Type 2 (single-family investment, capped at 3% per census tract), or Type 3 (multifamily). Licenses are now valid 2 years.

What changed in 2025-2026?

2-year licenses, no more CoO/insurance requirement, tenant operators allowed, and platform delisting of unlicensed listings starts July 1, 2026.

Who files the hotel occupancy tax?

Platforms collect and remit for stays under 30 days, but owners must still file a quarterly report (including zero reports) via Austin Finance Online.

Official sources and cross-checks