short term rental guide austin

Austin Short-Term Rental Rules & Regulations (2026 Guide)

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Austin’s Short-Term Rental (STR) Categories

Austin STR Permit Process & Information

In Austin, short-term rentals (STRs) are permitted in specific zoning districts, and regulations vary depending on the type of STR. Here’s a breakdown:

Zoning Districts Allowing STRs:

  • Commercial Zoning Districts: These areas, which include General Retail (GR) and Commercial Services (CS), are primarily intended for commercial activities and generally allow STRs.
  • Mixed-Use Zoning Districts: Areas where residential, commercial, and other uses are combined, such as in Vertical Mixed-Use (VMU) overlays, are often suitable for STRs.
  • Downtown Mixed-Use Districts (DMU): Central urban areas designed for high-density living and commercial activity typically allow STRs.
  • Residential Zoning Districts: In specific residential zones, STRs are allowed under strict conditions. These include:
  1. Type 1 STRs (owner-occupied): Permitted in most residential zones.
  2. Type 2 STRs (non-owner-occupied, single-family homes): Heavily regulated and limited in residential zones.
  3. Type 3 STRs (non-owner-occupied, multi-family units): Primarily allowed in commercial and multifamily zones.

Important Note:

STRs face strict regulations in residential districts, particularly in single-family zones (SF-1 through SF-3). Non-owner-occupied STRs (Type 2) are generally prohibited in these areas, and property owners may need to seek variances or other approvals to operate legally.

Austin’s regulations are subject to change, so it’s crucial for property owners to stay informed about current zoning laws and STR regulations to ensure compliance. 

For the most current information, consult the City of Austin’s official resources or legal guidance specific to zoning and short-term rentals. 

The Process of Registering an Airbnb in Austin

All short-term rentals (STRs) in Austin must be registered with the city. You can complete the registration process through the City of Austin’s online permitting system, known as the Austin Build + Connect portal. You’ll need to create an account, submit a completed application, and provide the required documentation, which may include:

A site plan of the property.

Floor plans of the rental unit.

Photographs of the property.

Proof of ownership or authorization to operate a rental.

Pay Fees

The registration process involves several fees:

Zoning and Application Review: Fees vary depending on the zoning district of your property.

Fire Inspection: A fire inspection is required, and the fees are determined based on the property’s size and the number of floors.

Short-Term Rental License: 

$836.30 total ($739 license fee & $47.30 notification fee) – Application Form 

The annual renewal fee thereafter costs $490 to maintain your license.

We recommend filing at least 60-90 days prior to your renewal date in case the City of Austin is running behind on permit approvals which we anticipate will pick up closer to June 2026 when they anticipate enforcing stricter guidelines on STR licenses.

Fire Inspection

Your property must pass a fire inspection to ensure compliance with safety standards. The inspection will assess factors like the number of floors, exits, smoke detectors, and other safety features. The associated fees are calculated based on these specifics.

Obtain a Short-Term Rental License

A short-term rental license is mandatory for legally operating an Airbnb in Austin. You can apply for this license through the Austin Build + Connect portal. The license fee is generally a base amount plus additional costs based on your rental’s expected income.

Annual Renewal and Compliance

Your STR license must be renewed annually. Compliance with city zoning codes and regulations is crucial to avoid fines or penalties. Additionally, STR operators are required to collect and remit hotel occupancy taxes (HOT) to the city and state, typically on a quarterly basis.

For the most current and detailed guidance, including specific instructions and fee structures, consult the City of Austin’s official website or reach out to the Austin Code Department.

Austin Hotel Occupancy Tax (HOT) Requirements

For Austin, short-term rental (STR) operators must collect and remit the following taxes:

Taxes:

City of Austin Hotel Occupancy Tax (HOT): 9%.

State of Texas Hotel Occupancy Tax: 6%.

This brings the total hotel occupancy tax for short-term rentals in Austin to 15% which is now collected directly from platforms like Airbnb, VRBO, Booking.com, etc. and distributed directly to the City of Austin.

Responsibilities:

STR operators were previously required to collect these taxes from renters and remit them to the City of Austin via the Austin Finance Online portal: https://financeonline.austintexas.gov/afo/finance/ .

Reporting and Payment:

Taxes must be reported and paid quarterly to the City of Austin. Late payments can lead to penalties and interest, so it’s essential for STR operators to stay compliant with these regulations.

By understanding and adhering to these tax obligations, STR hosts in Austin can efficiently manage their properties, optimize rental income, and ensure they remain in compliance with local and state laws.

Important Updated Note as of April 2025:

Now that the City of Austin is receiving occupancy taxes directly from the primary platforms you are still required to submit occupancy tax filings each quarter, no later than 1 month after each fiscal quarter (ex: Q1 ending March 31 – you must submit before April 30). 

These filings must be made each quarter even if $0 in income was received while operating your STR license, especially important in the beginning of operation while you are getting your STR setup. 

If you are solely listing your property on traditional platforms like VRBO & Airbnb you do not need to remit additional occupancy taxes since they are already removed on your behalf. However, if you are collecting payment on your own personal website or property managers website, you will be required to submit additional occupancy taxes from this earned income during your quarterly report filings. 

For detailed guidance and updates, it’s advisable to consult the City of Austin’s official website or contact the Austin Finance Department.

https://www.austintexas.gov/department/short-term-rentals

Lago Vista 

  • Permit Cost – $50 fee  I Application Form
  • You can apply for an STR permit if the property is located in any of the following zoning districts: R-1, R-O, RR-A, R-2.  Determine your property zoning with this map
  • Further details are found in for Lago Vista

Marble Falls 

  • Permit Cost – $175 renewed annually – Application Form 
  • The city of Marble Falls requires all short term rental operators to obtain a permit from the city in order to operate as a vacation rental. 
  • Register your short term rental and learn more about the complete application  requirements here. 

‍Lakeway 

  • Permit Cost – $250 
  • The city of Lakeway only allows 25 single family homes at a time to have a permit. Sign up for the waiting list here. 
  • There is currently no limit to the # of condo STR permits and therefore no waiting list. 
  • See a complete list of the active short term rentals in lakeway.

‍Canyon Lake 

  • Permit Cost – Free  I Permit Application 
  • WORD jurisdiction property map
  • Canyon Lake city office (830) 907-2300 for confirmation your property can operate as an STR.

San Antonio 

  • Permit Cost – $100 (valid for three years) 
  • San Anotonio has two types of Airbnb permits, Type 1 and 2 issued by the Development Services Department (DSD).
  • Type 1 – where the property is a primary residence and the owner or operator resides on it and do not have any density limitations.
  • Type 2 – where neither the owner nor the operator occupies the property and faces density limitations. 
  • Type 2 STRs can make up only up to 12.5% of the properties on a block face. 
  • For multifamily buildings, up to 12.5% of the total number of units can be operated as Type 2 STRs.
  • More information on the permit registration process can be found in this FAQ and the office can be reached with questions at  (210) 207-1111.

Non Restricted Cities

All the cities areas listed below do not have city enforced regulations. On the other hand be sure to check with the homeowners association (HOA)  if there is one and the property deed for any possible short term rental restrictions. 

  • Round Rock 
  • Cedar Park 
  • Bee Cave 
  • Pflugerville 
  • Georgetown 
  • Dripping Springs
  • Driftwood 
  • Horseshoe Bay