Is Airbnb Legal in Austin? 2026 Rules, Permits & Taxes

License required

Yes

Taxes on a stay

17%

Fine for hosting without a permit

Up to $500

Listings showing a permit number

32%

Latest rule change

Oct 1, 2026

Listing figures: AirROI, 12 months to September 2026. A number on a listing doesn't prove the permit or license is valid, and a missing one doesn't prove there is none.

The rules in brief

Who needs it

Anyone who operates a short-term rental (a housing unit or part of one rented for fewer than 30 consecutive days) in Austin's full-purpose or limited-purpose jurisdiction. A separate license is needed for each short-term rental. Properties in the extraterritorial jurisdiction (ETJ) do not need a license.^{1,5,6,7,18,24}

Issued by

City of Austin Development Services Department (Code Compliance)

Valid for

Up to 2 years from the date of issuance (director may grant a one-time 30-day extension); not transferable and does not convey with a sale of the property. Licenses valid on September 30, 2025 run until their printed expiry date.

Processing

New licenses: 6-8 weeks for single-family homes, 8-10 weeks for multi-family. Renewals: 4-6 weeks single-family, 6-8 weeks multi-family (the property can keep operating while a renewal is processed; a renewal can be filed up to 60 days before expiry, and a license issued before October 1, 2025 must be renewed at least 30 days before it expires to keep its exemption from the new eligibility limits).

On listings

The number must appear on every listing

Platform checks

Since July 1, 2026 platforms must require users to include a license number in each Austin STR advertisement, must remove an advertisement within 10 days of a city delist notice, and may not accept a booking fee for an unlicensed STR. The city said in April 2026 that delist notices would be paused for six months after its new licensing system launches and then phased in groups.

Fees

Who qualifies

• The operator must own or lease the housing unit; a tenant needs the owner's authorization and must show they pay the utilities
• No primary-residence or owner-occupancy requirement
• On a site with three or fewer housing units, an individual can operate up to two STRs; STRs on more than one site must be at least 1,000 feet apart
• On a site with four or more housing units: the greater of one unit or 25% of the units the person owns or leases if the site has a commercial use, or 10% if it has none
• Single-family sites are limited to individuals, including individuals who own through a trust or LLC in which every trustee, beneficiary or member is an individual
• The unit must have no outstanding City Code or state-law violations (certified on the application) and must be habitable
• A person whose STR was declared a nuisance cannot get a new license for 12 months; a property whose license was revoked is barred for 6 months (12 if nuisance) unless the applicant is unrelated to the prior owner or lessee

How to apply

1. 1 Check the property's jurisdiction on the City's Jurisdiction Map (full-purpose, limited-purpose or ETJ)
2. 2 Create an Austin Finance Online (AFO) account (required for anyone operating or collecting payment for an STR in the full-purpose jurisdiction; it is also where quarterly hotel tax is filed)
3. 3 Gather a copy of the owner's driver's license or government ID, proof of tenancy if applicable, and a notarized Agent Authorization Form if the applicant is not the owner
4. 4 Submit the STR application in Austin Finance Online (AFO), the portal the city's STR page directs applicants to as of September 2026 (the city has announced an easier-to-use tool but does not list it yet): upload the documents and pay by credit card or e-check. Paper applications can be dropped off by appointment at the Permitting and Development Center, 6310 Wilhelmina Delco Drive, or mailed with a check or money order
5. 5 Email a copy of the owner's ID to STRdocs@austintexas.gov, adding the STR's address if it differs from the address on the ID
6. 6 Wait for review; if approved the license and required postings are emailed, neighbors within 100 feet are notified, and the license number must go on every listing

Permit rules

One operator's license per rental

A person must hold an operator's license to run a short-term rental, and each short-term rental needs its own license.¹ In force since October 1, 2025

Licenses valid on September 30, 2025 keep running, and renewals skip the new eligibility tests

A license valid on September 30, 2025 stays effective until its expiry date. Renewals can be filed up to 60 days before expiry, and the license must be renewed at least 30 days before it expires to stay exempt from the new density and spacing rules; the exemption ends if the operator fails to renew in time or the license is revoked.^1,6 Applies to: operators licensed before 2025-10-01 · In force since October 1, 2025

A license does not transfer with a sale

Operating licenses are non-transferable and do not convey with a sale of the property; a buyer must apply for a new license (and would then face the current eligibility rules).^1,6 In force since October 1, 2025

License number goes in every advertisement

An operator must include the license number in any advertisement or promotion, and no one may advertise or promote a unit as a short-term rental without a valid license.^1,6 In force since October 1, 2025

Platforms must show license numbers and delist within 10 days

Platforms must require a license number in each Austin listing, must remove a listing within 10 days of a written city delist notice, may not take a booking fee for an unlicensed STR, and must give users at least quarterly documentation of hotel tax collected for them. These duties began July 1, 2026.^1,6 Applies to: online platforms (Airbnb, Vrbo, Booking.com, etc.) · In force since July 1, 2026

City is phasing in delisting after its new licensing system launches

In April 2026 the city said delist notices for unlicensed properties would be paused for six months after its new licensing system launches (scheduled for May 18, 2026), then sent in manageable groups starting with properties that have drawn nuisance complaints. The city has not published a date for the end of the pause, so check its STR page for the current status.⁷ Applies to: unlicensed listings

Tax filings are checked at renewal

Renewal requires proof that hotel occupancy tax is paid if the operator does not use a platform to collect payment, and Development Services checks that every quarterly hotel tax report was filed.^1,9 Applies to: renewals · In force since October 1, 2025

Denial, revocation and appeal

The city must deny an application from an ineligible applicant and may deny one where the unit has two separate disturbances or two violations of law. Denials, revocations and nuisance declarations can be appealed in writing to the director within 10 days, and a hearing officer must hear the appeal within 21 days.¹ Applies to: applicants and operators · In force since October 1, 2025

Allowed in every residential zoning district

Short-term rental is an accessory use to a residential use in all base, special purpose, combining and overlay zoning districts and cannot be prohibited, provided the operator holds a Chapter 4-23 license. This replaced the earlier Title 25 type-based rules.² In force since October 1, 2025

Own or lease the unit; no owner-occupancy rule

The operator must own or lease the housing unit. Nothing in Chapter 4-23 requires the operator to live there, so investor-owned whole homes are eligible; tenants may operate with the owner's authorization.^1,6 In force since October 1, 2025

Up to two STRs on a site with three or fewer units

On a site with three or fewer housing units, one individual can operate up to two short-term rentals.^1,6 Applies to: sites with 3 or fewer housing units · In force since October 1, 2025

An individual's STRs on different sites must be 1,000 feet apart

An individual may operate STRs on more than one site only if the sites are at least 1,000 feet apart. This is a same-operator spacing rule, and it applies through trusts and LLCs in which the individual participates; it is not a rule that every licensed STR must be 1,000 feet from every other.^1,6 Applies to: individuals operating on more than one site (sites with 3 or fewer units) · In force since October 1, 2025

Caps in buildings with four or more units

On a site with four or more housing units, a person can operate the greater of one unit or 25% of the units they own or lease if the site includes a commercial use, or the greater of one unit or 10% if it has no commercial use.^1,6 Applies to: sites with 4 or more housing units · In force since October 1, 2025

Single-family sites are for individuals, not companies

The council limited operators on single-family sites to individuals. An owner counts as an individual if the unit is owned only by individuals, by a trust whose trustees and beneficiaries are all individuals, or by an LLC whose members are all individuals.^1,7 Applies to: single-family sites · In force since October 1, 2025

Rules differ by jurisdiction: city limits, limited-purpose areas, ETJ

Properties in Austin's full-purpose jurisdiction need a license and pay city hotel tax. Limited-purpose jurisdiction properties need a license but do not pay the city hotel tax; properties in the ETJ need neither. Use the city's Jurisdiction Map to check an address.⁶ Applies to: full-purpose, limited-purpose and ETJ properties

Local contact who answers within two hours

Every operator must designate a local contact: an individual in the Austin metro area (Travis, Williamson, Hays, Bastrop or Caldwell County) who can make decisions and resolve emergencies. The contact must respond within two hours and be at the property within two hours if a City employee asks; the operator can be the local contact.^1,6 In force since October 1, 2025

Sound limits at the property line and quiet hours

Sound equipment may not exceed 75 decibels at the property line from 10 a.m. to 10 p.m. and may not be audible beyond the property line from 10 p.m. to 10 a.m.; noise or instruments audible to an adjacent home or business are banned from 10:30 p.m. to 7 a.m.^1,6 Applies to: operators and guests · In force since October 1, 2025

No STR-specific guest-count cap in the current code

Chapter 4-23 sets no maximum number of guests or bedrooms for a short-term rental. The old Title 25 STR requirements, which held the previous type-based rules, were repealed effective October 1, 2025. General occupancy, fire and building laws still apply because operators must comply with all local, state and federal law.^1,2 In force since October 1, 2025

No event ban, but disruptive gatherings count toward nuisance

Chapter 4-23 has no STR-specific event or party ban. Gatherings that cause a public disturbance, police or 311 calls and noise complaints can support a nuisance finding, mitigation requirements or license revocation.¹ In force since October 1, 2025

Self-certified safety checklist, fire extinguisher list, habitable unit

Applicants submit a self-certified safety checklist, the unit must be habitable, and guests must be given a list of fire extinguisher locations. The director can require a third-party inspection if the unit had state-law or City Code violations in the prior 24 months.¹ In force since October 1, 2025

The city no longer asks for proof of insurance or a certificate of occupancy with an application

Since October 2025 the city does not require a Certificate of Occupancy or proof of insurance for new applications or renewals. That removes an application document; it is not advice that coverage is unnecessary.⁶ Applies to: new and renewal applicants · In force since October 2025

Check your insurance: standard home policies often exclude paying guests

The Texas Department of Insurance says a standard homeowners policy probably won't cover injuries or damage when guests pay to stay, so hosts should ask their insurer whether they are covered and whether to add coverage for paying guests.²²

Neighbors within 100 feet are notified at every issue and renewal

The city sends the local contact's details to all properties within 100 feet, at the operator's expense (the notification fee), each time a license is issued or renewed.^1,6 In force since October 1, 2025

Renting part of a home: private bedroom and shared full bath

If the rental does not include the entire housing unit, the operator must give guests the exclusive use of a bedroom and shared use of a full bathroom.¹ Applies to: room or partial-unit rentals · In force since October 1, 2025

No annual night cap or minimum stay; under 30 nights is 'short-term'

A short-term rental is a rental of fewer than 30 consecutive days. Chapter 4-23 sets no annual night cap and no minimum stay.¹ In force since October 1, 2025

Median nightly rate, booked nights

$190

Taxes on that night (17%)

$32

Guest pays, before Airbnb and cleaning fees

$222

What the host still handles

• City of Austin operator's license for each STR (Development Services)
• An Austin Finance Online (AFO) account, required for STRs in the full-purpose jurisdiction, which also holds the hotel tax customer account
• File a City of Austin hotel occupancy tax report every quarter (due Apr 30, Jul 31, Oct 31 and Jan 31), including a zero report when there were no rentals, and provide the documentation showing how much tax each platform collected for you
• For direct bookings or bookings through a platform that does not collect: collect and remit the city hotel tax to the City quarterly and the 6% state hotel tax to the Texas Comptroller (send Form AP-102; state reports are monthly, or quarterly if qualified, due the 20th of the following month)
• If you rent only through a platform that has agreed to collect state hotel tax (Airbnb does in Texas), you do not have to collect or remit the state tax yourself^{8,9,10,11,15,17,23}

• Violating Chapter 4-23 (including operating or advertising without a license) is a separate offense for each day it continues, punishable by a fine of up to $500 per offense; no culpable mental state has to be proved.¹
• The director may revoke a license for threats to life, health or safety, a nuisance STR, failure to keep mitigation requirements or a compliance plan, or a local contact who fails to respond within two hours; a revoked property cannot be relicensed for six months (12 months if it was declared a nuisance).¹
• A person whose STR was declared a nuisance by the director or a court cannot obtain a new operator's license for any short-term rental for 12 months.¹
• Platforms must remove an unlicensed listing within 10 days of a written city delist notice (duty in force since July 1, 2026, with the city phasing notices in).^1,7
• Late or unpaid City of Austin hotel tax: 5% penalty, another 5% from day 61, and interest of 10% per year from day 61.⁹
• Late Texas state hotel tax: $50 penalty per late report, plus 5% if paid 1-30 days late or 10% if more than 30 days late, with interest starting 61 days after the due date.¹⁰

1. October 1, 2026
   Lower STR license fees take effect (FY2026-27 fee schedule)

   Under Ordinance 20260812-006, passed August 12, 2026, the STR license fee is $642 for a new license (two-year validity) and $275 for a renewal, down 19% from $789 and $338, while the neighbor-notification fee doubles from $47.30 to $94.60. That makes $736.60 for a new license and $369.60 for a renewal.^5,13,14

2. July 1, 2026
   Platform duties take effect

   Platforms must require a license number in each listing, remove unlicensed listings within 10 days of a city delist notice, not take booking fees for unlicensed STRs, and give operators quarterly hotel tax documentation.^1,6

3. May 18, 2026
   New licensing system scheduled to launch

   The city's April 2026 memo scheduled its new online licensing system for this date. As of October 18, 2026 the city's STR page still describes the easier-to-use tool as upcoming and directs applicants to Austin Finance Online.^6,7

4. April 30, 2026
   Development Services memo on fees, new licensing system and delist phase-in

   Staff told Council the new online licensing system was scheduled to launch May 18, 2026, that delist notices would be paused six months after launch and then phased in, and that enforcement against applicants with pending applications would be paused.⁷

5. January 7, 2026
   City listing-scraping enforcement tools go live

   Staff began identifying unlicensed STRs by scraping online listings and matching them to addresses; by April 1, 2026 they had found 2,785 unlicensed addresses.⁷

6. October 1, 2025
   New operator rules and accessory-use zoning take effect

   STR becomes an accessory use in all residential zoning districts; the old Type 1/2/3 Title 25 requirements are gone; licenses run up to two years; insurance and certificate of occupancy no longer required; tenants can operate with owner authorization; per-site limits and spacing apply (existing licenses grandfathered until they lapse).^1,2,6

7. September 11, 2025
   Council repeals and replaces Chapter 4-23 (Ordinance 20250911-012)

   Adds per-site limits, spacing, multi-unit caps, individual-owner limits, stronger local-contact rules, mitigation and revocation powers, and platform duties (license number in listings, delisting).^1,7

8. April 1, 2025
   Platforms must collect and remit Austin hotel tax

   Airbnb, Vrbo and other platforms that take payment for an STR must collect and remit the city hotel occupancy tax for operators; operators still file quarterly reports.^3,6,9

9. February 27, 2025
   Council adopts three STR ordinances

   Ordinance 20250227-039 made STR an accessory use in all residential zoning districts and repealed the Title 25 STR requirements (effective October 1, 2025); 20250227-040 created Chapter 4-23 in Title 4 (Business Regulation), later replaced; 20250227-041 required platforms to collect city hotel tax (effective April 1, 2025).^2,3,4,7,16

Estimate what an Austin home could earn

1. 1. Ordinance No. 20250911-012 (repeals and replaces City Code Chapter 4-23, Short-Term Rentals) · City of Austin City Council
2. 2. Ordinance No. 20250227-039 (short-term rental accessory use; repeals Title 25 STR requirements) · City of Austin City Council
3. 3. Ordinance No. 20250227-041 (Chapter 11-2 Hotel Occupancy Tax; platforms collect and remit) · City of Austin City Council
4. 4. Ordinance No. 20250227-040 (first version of City Code Chapter 4-23, later replaced) · City of Austin City Council
5. 5. Ordinance No. 20260812-006 (FY2026-27 fees, fines and other charges, with Exhibit A) · City of Austin City Council
6. 6. Short-Term Rentals · City of Austin Development Services
7. 7. Memorandum: Update on Short-term Rental Program (2026-04-30) · City of Austin Development Services
8. 8. Hotel and Rental Tax · City of Austin Financial Services
9. 9. Hotel Occupancy Taxes · City of Austin Financial Services
10. 10. Hotel Occupancy Tax · Texas Comptroller of Public Accounts
11. 11. Hotel Occupancy Tax FAQs (incl. short-term rental platforms) · Texas Comptroller of Public Accounts
12. 12. Short Term Rental Locations (open data) · City of Austin Open Data Portal
13. 13. August 12, 2026 Austin City Council Budget Adoption Reading (agenda, executed ordinances) · City of Austin
14. 14. Austin City Council Approves $6.6 Billion Budget for Fiscal Year 2026-2027 (news release, 2026-08-12) · City of Austin
15. 15. The Hotel Occupancy Tax (Fiscal Notes, June-July 2016) · Texas Comptroller of Public Accounts
16. 16. February 27, 2025 Austin City Council Regular Meeting (agenda items 39-41) · City of Austin
17. 17. Local Hotel Occupancy Tax (HOT) Data · Texas Comptroller of Public Accounts (data.texas.gov)
18. 18. Apply for a short-term rental license · City of Austin Services
19. 19. JBrice Holdings, L.L.C. v. Wilcrest Walk Townhomes Association, Inc., No. 20-0857 (Tex. Apr. 22, 2022) · Supreme Court of Texas
20. 20. Topic no. 414, Rental income and expenses · Internal Revenue Service
21. 21. Topic no. 415, Renting residential and vacation property · Internal Revenue Service
22. 22. Renting out your home? Check your insurance · Texas Department of Insurance
23. 23. Occupancy tax collection and remittance by Airbnb in Texas · Airbnb Help Center
24. 24. Austin, Texas (Responsible Hosting) · Airbnb Help Center