Airbnb reaches tax agreement with State of Texas, will begin collecting taxes May 1

Beginning May 1, Airbnb will begin collecting and remitting the 6% state hotel occupancy tax on all eligible bookings in Texas.

Guests will be charged the appropriate taxes on their Airbnb bill and Airbnb will then remit to the State the taxes collected.

“Agreements like this allow communities to rightfully benefit from the economic impact of home sharing while also making it easier for Airbnb hosts, ­the vast majority of whom are middle class people sharing their own home, to comply with local tax laws,” said Laura Spanjian, Airbnb Public Policy Manager for Texas. “Our community of 26,000 Texas hosts wants to pay their fair share of taxes and we want to help. We are excited to reach this agreement with the State of Texas to be able to collect and remit taxes on behalf of our hosts and guests.”

If this agreement had been in place last year, Airbnb would have remitted an estimated $8 million to the state.

“The sharing economy plays an important role in our state’s overall fiscal health,” said Texas Comptroller Glenn Hegar.  “We applaud Airbnb for agreeing to collect state hotel occupancy taxes, as all lodging facilities in Texas are required to do. Airbnb is taking a true leadership role by setting an example and acting as a responsible partner with the state of Texas as our dynamic economy continues to evolve.”

“The sharing economy plays an important role in our state’s overall fiscal health”

With this new agreement, Texas joins a list of more than 275 jurisdictions globally where Airbnb is collecting and remitting hotel taxes on behalf of our hosts and guests.

For families around Texas, Airbnb makes it possible to pay their bills, stay in their homes and make ends meet. The typical host in Texas earns $4800 a year sharing his or her home. This is meaningful supplemental income during a time of historic income inequality.

At the same time, Airbnb is democratizing travel by creating an affordable way for travelers to authentically explore every corner of the world. To date, there have been more than 160 million guest arrivals in Airbnb listings around the globe.

More information:

Tax agreements with 275 governments

In what areas is Airbnb collecting and remitting taxes?

How does Occupancy Tax Collection and Remittance by Airbnb work?