Hotel Occupancy Tax

Who is responsible for this tax?

Hotel owners, operators or managers must collect state hotel occupancy tax from their guests who rent a room or space in a hotel costing $15 or more each day. The tax applies not only to hotels and motels, but also to bed and breakfasts, condominiums, apartments and houses. Local hotel taxes apply to sleeping rooms costing $2 or more each day.

With the numerous sporting and entertainment events around the state, many homeowners rent their homes or rooms in their house to people attending these events. Persons leasing their houses must collect hotel occupancy tax from their customers in the same way a hotel or motel collects the tax from its guests. Property management companies, online travel companies and other third-party rental companies may also be responsible for collecting the tax.

Rates

The state hotel occupancy tax rate is 6 percent (.06) of the cost of a room.

Cities and certain counties and special purpose districts are authorized to impose an additional local hotel tax that the local taxing authority collects.

Due Date

Monthly: 20th day of the month following the end of each calendar month (for example, April 20 for March activity). Quarterly (if qualified): 20th day of the month following end of the calendar quarter (for example, April 20 for first quarter activity).

Penalties and Interest

Penalties

A $50 penalty is assessed on each report filed after the due date.
If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.

Interest

Past due taxes are charged interest beginning 61 days after the due date.
To calculate interest on past due taxes, visit Interest Owed and Earned.

Discounts

When this tax is filed and paid by the due date, taxpayers may apply a 1 percent discount of the tax due on a monthly or quarterly return.

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $10,000

Select one of these reporting methods:

Select one of these payment methods:

Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
TEXNET
Check

$10,000 - $49,999

Select one of these reporting methods:

Select one of these payment methods:

Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
TEXNET

$50,000 - $499,999

Webfile is the only acceptable reporting method.

Select one of these payment methods:

Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
TEXNET

$500,000 or more

Webfile is the only acceptable reporting method.

TEXNET is the only acceptable payment method.

Texas Tax-Exempt Entity Search

Retailers, including hotel and motel operators, can search our records and obtain online verification of an organization's exemption from Texas franchise tax, sales and use tax, and hotel occupancy tax.