Short-Term Rental Regulations · Austin, TX
Is Austin short-term-rental friendly?
Austin requires a city operating license for any rental under 30 consecutive days, but since October 2025 a licensed short-term rental is allowed as an accessory use in every zoning district, with no owner-occupancy requirement or annual night cap stated in the city's materials. The city caps how many units one person can operate (up to two on a single-family site, with 1,000-foot spacing beyond that), requires a local contact in the Austin metro area, and since July 1, 2026 requires platforms to display license numbers and remove unlicensed listings on city notice. Owners also face a combined 17 percent hotel occupancy tax, with quarterly filings required even when a platform remits the tax.
Last updated: . Every fact links to its official source.
Town-by-town rules
| Town | Permit required? | Annual cost | Primary-residence / night-cap limits | Lodging tax |
|---|---|---|---|---|
| Austin | Operating an Austin short-term rental, defined as renting a housing unit or part of one for less than 30 consecutive days, requires a City of Austin operating license from Development Services Code Compliance before advertising or operating. Licenses are issued for two years under the October 2025 changes (previously one year, and some sections of the city page still reference annual licensing). Ordinance 20250227-039 made short-term rental use an accessory use allowed in all zoning districts with a valid license, and since July 1, 2026 platforms must display license numbers and remove unlicensed Austin listings when the city notifies them. (City of Austin Development Services, Short-Term Rentals (opens in a new tab), Austin Ordinance 20250911-012, City Code Chapter 4-23 Short-Term Rentals (opens in a new tab), Austin Ordinance 20250227-039, Chapter 25-2 STR zoning amendments (opens in a new tab)) | A new STR operating license is $836.30, which includes a $789 license fee and a $47.30 notification fee; fees are non-refundable. The FY2026 renewal license fee is $338 (new license fee $789 in FY2026 before the notification fee). The FY 2025-26 fee schedule took effect October 1, 2025, and City Council has directed staff to develop a revised STR fee schedule, so amounts may change. (City of Austin Development Services, Short-Term Rentals (Fees section) (opens in a new tab), Austin Development Services memo to City Council, Update on Short-term Rental Program, April 30, 2026 (yearly STR fee table) (opens in a new tab), City of Austin Development Services, Fees (FY 2025-26 Code Compliance fee schedule) (opens in a new tab)) | No annual night cap or owner-occupancy requirement appears in the current official materials. The former Type 1 (owner-occupied) and Type 2 (non-owner-occupied, limited to certain commercial zoning districts with 1,000-foot spacing and a 3 percent census tract cap) framework was repealed effective October 1, 2025, and short-term rental use is now allowed as an accessory use in all zoning districts. Remaining limits are per operator and site: up to two STR units on a single-family site, additional STRs only if at least 1,000 feet apart, the greater of one unit or 25 percent of units on mixed-use sites, and the greater of one unit or 10 percent of units on multifamily sites; tenants may operate with their landlord's permission. (Austin Ordinance 20250227-039, Chapter 25-2 STR zoning amendments (opens in a new tab), Austin Development Services memo to City Council, Update on Short-term Rental Program, April 30, 2026 (opens in a new tab), City of Austin Development Services, Short-Term Rentals (opens in a new tab), City of Austin Short-Term Rentals fact sheet (prior Type 1, Type 2, Type 3 framework) (opens in a new tab)) | Austin short-term rentals pay a combined 17 percent hotel occupancy tax: the Texas state HOT of 6 percent remitted to the Comptroller, plus the City of Austin HOT of 11 percent (a 9 percent occupancy tax plus a 2 percent venue project tax). Since April 1, 2025 booking platforms must collect and remit HOT on platform bookings, but owners must still file quarterly city reports due the last day of the month after each quarter (zero reports included) and state returns. STRs in Austin's Limited Purpose Jurisdiction are not subject to city HOT but still need a license, and STRs in the ETJ need neither a license nor local HOT. (Texas Comptroller, Hotel Occupancy Tax (opens in a new tab), City of Austin Financial Services, Hotel Occupancy Taxes (rates and reporting) (opens in a new tab), City of Austin Development Services, Short-Term Rentals (Paying and Reporting HOT) (opens in a new tab)) |
"Not found" means the restriction was not located in the linked official materials reviewed as of the update date. It does not prove that no later, uncodified, parcel-specific, or special-district rule applies.
Good to know
- Austin: Watch licensing status closely: the city's enforcement tools went live January 7, 2026, and by April 1, 2026 staff had identified 2,785 unlicensed addresses, issuing 65 notices of violation and 28 citations. Since July 1, 2026 the city can require platforms to delist unlicensed Austin properties. Owners must also keep quarterly HOT filings current (renewal requires confirmation of them), designate a local contact living in the Austin metro area (Travis, Williamson, Hays, Bastrop, or Caldwell County) who can respond within two hours, and pay for neighbor notification mailed at license issuance and at every renewal. (Austin Development Services memo to City Council, Update on Short-term Rental Program, April 30, 2026 (opens in a new tab), City of Austin Development Services, Short-Term Rentals (opens in a new tab), Austin Ordinance 20250911-012, City Code Chapter 4-23 Short-Term Rentals (opens in a new tab))
FAQ
Do I need a license to run a short-term rental in Austin?
Yes. Any rental of a housing unit for less than 30 consecutive days in Austin's full or limited purpose jurisdiction requires a City of Austin operating license before you advertise or operate. A new license costs $836.30 ($789 license fee plus $47.30 notification fee), licenses have been valid for two years since the October 2025 changes, and since July 1, 2026 platforms must display license numbers and remove unlicensed Austin listings when the city requests it.
Can I operate a short-term rental in Austin if I do not live there?
Yes. Ordinances adopted in February 2025 and effective October 1, 2025 repealed the old Type 1 (owner-occupied) and Type 2 (non-owner-occupied) zoning framework and made short-term rentals an accessory use allowed in all zoning districts with a valid license. There is no owner-occupancy requirement or annual night cap in the city's materials, but one person may operate at most two STR units on a single-family site, additional STRs must be at least 1,000 feet apart, mixed-use sites are capped at the greater of one unit or 25 percent of units, multifamily sites at the greater of one unit or 10 percent, and tenants may only operate with their landlord's permission.
What hotel occupancy taxes do Austin short-term rental owners pay?
A combined 17 percent: the Texas state hotel occupancy tax of 6 percent remitted to the Comptroller, plus the City of Austin HOT of 11 percent (9 percent occupancy tax plus 2 percent venue project tax). Since April 1, 2025 booking platforms must collect and remit HOT on platform bookings, but owners must still file a quarterly city report due the last day of the month after each quarter, including a zero report if there were no rentals, and must also file state returns.
Are there any night limits or annual caps on how often I can rent my Austin home?
No annual night cap was located in the official city materials reviewed; the defining limit is that short-term stays are under 30 consecutive days, and the previous 30-nights-per-year limit for secondary apartments built after October 1, 2015 was repealed in 2025. The city's caps apply to how many units an individual can operate per site, and private deed restrictions or association rules, which city licensing does not override, may add their own limits, so verify any that apply to your property.
General information, not legal advice. Short-term rental rules change, so verify current requirements with the jurisdiction before listing.