Delaware taxes?

[Diana1791]

I’m a new host in AirBnb (&Vrbo) with property located in Kent County. I’ve scoured all tax info, asked my accountant and reviewed 100s of listings on both platforms but I keep finding conflicting info. Can anyone tell me if I MUST collect any type of occupancy tax? Vrbo says 9% whole AirBNB says $0. Hosts are charging either $0 taxes or up to 10% from my research. I’ve got NO solid proof I should be collecting & remitting. (I understand gross receipts still must be reported quarterly even if $0 if under $200K to dept of revenue.) Can anyone help me please? Thanks!

[Paula]

Hello @Diana1791,

Since this is a global community, it might be a bit challenging for Hosts from Delaware to see your post. I'd recommend checking if there are any local Host Clubs in your area and posting your question there as well. 👉 You can find them here.

Good luck,

[Lorna170 · Accepted solution]

@Diana1791   Whether AirBnB collects taxes for you depends on whether or not they have an agreement with the local tax agency.  VRBO will have a separate agreement.

Go to your local tax office and ask about Short Term Rental Occupancy (Lodging) taxes.  It appears from my cursory online search that the potential taxes in Kent are address specific and there are forms involved. 

What other hosts are doing is not a good measure of what taxes are due. Many hosts begin renting with no consideration as to the taxes applicable to property rentals. If they do know what percentage to charge for taxes, and AirBnB does not do it for them, they may simply increase their nightly rate, appearing to be charging no taxes.

[Chuck233]

oops just say it was signed Sept 30, 2024.

I'm in Sussex county and the law was passed in June but hasn't been signed yet by the governor so not much info out on it yet.  Its my understanding that taxes will be collected for any rentals booked after Jan 1 2025.  There fore if you book before then even if its for next summer there will be no tax applied for that booking.  I also believe you will to apply with the town to get a rental license.  Again not much out on this yet since it hasnt been signed.

Also some municipalities in DE do tax there rentals but that's a city thing.  There are a number of them that do.

[Linda4737]

Hi Diana,

The state of DE just passed new legislation requiring STRs to pay 4.5% tax on their bookings. The new law also allows the counties to implement a county tax up to 3%. Here's a link to the bill that has been signed into law. 
Here's a link to the bill that passed.
https://legis.delaware.gov/BillDetail/141646