Austin Short-Term Rental Laws (2026)
Permits, taxes, caps, and penalties for Airbnb & vacation rentals in Austin, Texas — from official sources, with citations. Reviewed 2026-07-02.
STRs Permitted
Austin allows short-term rentals in all residential zones citywide as long as you hold a valid city STR license, which now lasts two years.
Can you operate a short-term rental in Austin?
Under the ordinance changes effective October 2025, STRs are a permitted accessory use to all residential zoning in Austin's full and limited purpose jurisdictions — but only with a valid license. Properties in the extraterritorial jurisdiction (ETJ) don't need a city license. Even renters can operate an STR if their landlord gives permission.
License required citywide
Every STR inside Austin city limits must hold a city license before operating or advertising. Licenses are valid for two years (extended from one year in October 2025).
§ Austin City Code Ch. 25-2 (zoning) and Ch. 4-23 (STR licensing)
Allowed in all residential zones
STRs are treated as an accessory use to all residential zoning, so there's no neighborhood where a licensed STR is banned outright.
Per-site unit caps
On a single-family site you can operate up to two STR units. Multifamily owners can operate the greater of one unit or 10% of units; mixed-use, the greater of one unit or 25%.
Tenants can host with landlord consent
The October 2025 changes let tenants hold an STR license with notarized landlord authorization. Certificate of Occupancy and insurance requirements were also eliminated.
Permits & licenses in Austin
Apply online through Austin Finance Online (AFO). Expect 6-8 weeks of processing for single-family properties and 8-10 weeks for multifamily.
- 1
Gather documents
You'll need a government ID, proof of tenancy if you rent, and a notarized landlord authorization if you're a tenant-host.
- 2
Submit via Austin Finance Online
The application is filed through the city's AFO portal, and you email a copy of your driver's license to STRdocs@austintexas.gov.
- 3
Wait for review
Processing runs 6-8 weeks for single-family and 8-10 weeks for multifamily applications.
- 4
Renew every two years
Licenses are valid for two years; renewal is cheaper than the initial application.
Fees: New license: $836.30 ($789 license fee + $47.30 notification fee). Renewal: $385.30 ($338 + $47.30 notification fee).
Short-term rental taxes in Austin
Guests pay a combined 17% in hotel occupancy taxes (6% Texas + 11% Austin). Since April 1, 2025, booking platforms must collect and remit the city tax for you, but you still file quarterly reports with the city — even if you owe zero.
| Level | Tax | Rate | Collected by | Filing |
|---|---|---|---|---|
| State | Texas Hotel Occupancy Tax | 6% | Platform | Platforms remit for marketplace bookings; direct bookings filed with the Texas Comptroller |
| City | Austin Hotel Occupancy Tax (9% occupancy + 2% venue project) | 11% | Platform | Quarterly report to Austin Financial Services, due the last day of the month after each quarter, even if zero |
These rules change — Austin can amend them any month.
Compliance Watch monitors Austin's official sources and emails you the day permits, caps, or taxes change: what changed, old vs. new, and what to do. $49/yr per property, 100% credited toward Tenby.
Watch my TX property →Operating rules
Noise limits
Sound equipment can't exceed 75 decibels at the property line between 10 a.m. and 10 p.m., and no sound may be audible beyond the property line between 10 p.m. and 10 a.m.
§ Austin STR license conditions
Quiet hours for neighbors
Guests can't create noise audible to an adjacent business or residence between 10:30 p.m. and 7 a.m.
§ Austin STR license conditions
Quarterly tax reporting
Operators using a platform must report how much hotel occupancy tax each platform collected on their behalf each quarter.
§ Austin Financial Services HOT program
Neighbor notification
The license fee includes a $47.30 notification component — the city notifies nearby owners when a license is issued.
§ Austin STR licensing program
Penalties for illegal short-term rentals in Austin
Austin's enforcement lever is delisting: unlicensed properties get pulled from booking platforms, and license violations can cost you the license. Fine amounts apply under city code (see source).
- ⚠Beginning July 1, 2026, the city will request that platforms remove listings for unlicensed STRs.
- ⚠Operating without a license means you cannot legally advertise or accept bookings inside city limits.
- ⚠Noise and operational violations can jeopardize the two-year license.
Official sources
- [1]Short-Term Rentals — City of Austin
- [2]Hotel Occupancy Taxes — Austin Financial Services
- [3]What is the City of Austin's Hotel Occupancy Tax rate? — AustinTexas.gov FAQ
- [4]Hotel Occupancy Tax — Texas Comptroller
- [5]Hotel Occupancy Tax FAQs — Texas Comptroller
- [6]Hotel and Short Term Rentals — Austin Finance Online
Summarized from the official sources above as of 2026-07-02. Informational, not legal advice — always confirm requirements with the jurisdiction before acting.
Running the numbers on an STR here? Try the free Airbnb Fee Calculator — or see STR laws in 14 other markets. And when you're ready, Tenby runs your whole rental — rent, maintenance, taxes, compliance — from one app.
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