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.
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.
| Item | Penalty |
|---|---|
| Violations | $500-$2,000 per violation, per day. |
| Unlicensed operation | Up to $2,000 per day, plus platform delisting starting July 2026. |
| Revocation | Three 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 →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
Sources with links
- City of Austin — Short-Term Rentals austintexas.gov
- RentPermitted — Austin STR guide (cross-check, May 2026) rentpermitted.com
- ShortTermRentalHQ — Is Airbnb Legal in Austin (cross-check) shorttermrentalhq.com