Inaccurate sales tax

Vina595
Level 2
United States

Inaccurate sales tax

Hello everyone,

 

I am having problems with the taxes Airbnb collects and remits on my behalf.  The tax rates are not consistent and the rate has also changed as of January 2025.  When I chat with support they are unable to explain what percentage they are charging and to what jurisdiction it is being paid to.  This has me concerned and frustrated to say the least.  I seem to be unable to get this resolved through support.  Does anyone have a contact number I can call to speak directly with someone at Airbnb that handles collecting and remitting taxes on hosts behalf?

 

 

5 Replies 5

@Vina595 

This is a constant complaint from Hosts. Airbnb will NOT disclose percentages for each tax jursidiction, despite the fact they obviously know what those percentages are. There is no person you can speak to directly that handles taxes and many times Hosts are given the wrong information. Additionally, Airbnb does sometimes get the taxes wrong and it is VERY difficult to get them to correct this, even when proof is provided. They either overcharge or undercharge. Airbnb does make it very clear that Hosts are ultimately responsible for ensuring all taxes are paid. They do not collect and pay required taxes for all jurisdictions.

 

First determine what taxes should be paid (sales tax state/local and Occupancy taxes and other tourist taxes). Then review the tax detail on a reservation to see what jurisdictions Airbnb is collecting for (they will not show the percentages). Then do the math and determine if the amount is correct. 

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State of Louisiana Sales Tax 5%

https://www.airbnb.com/help/article/23074

 

Not sure what percentages for Sunset & Landry are.

 

 

You can also turn on Pro Tools in your account settings. Then go to the Listing Editor/Settings/Taxes to see what jurisdictions Airbnb says the are collecting for:

 

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I wish they would just leave all the taxes for me to remit them so they can be done correctly. This is extremely frustrating! 

@Vina595 

In some states Airbnb has agreements (usually with the state) to collect and remit the taxes, so they don't allow Hosts to opt out of that. Other states, Airbnb does allow you to set a custom tax that is collected on every booking but paid to the Host to remit. Other states they allow you to opt out entirely, but you will then need to collect taxes from every guest manually and remit them...cumbersome.

It is showing that Airbnb is collecting and remitting 3 different taxes but that is not correct.  I know all the tax rates and it's not adding up.  They will not tell me the rates and exactly where that money is being.  I contacted my local tax authorities and they are extremely frustrated with Airbnb.  Airbnb is submitting one tax form for every host in this parish/county.  So the taxing authority has no idea which hosts they are paying taxes for and Airbnb refuses to give them that information.  This is not proper accounting of tax funds.  I'm seriously thinking about pulling my listings as I don't trust this at all.  

@Vina595 

Agree with you. Airbnb makes this way too complicated. I did mention they will not disclose percentages/rates. Ridiculous, as they obviously have the information.

 

If you know the percentages, you should be able to do the math and determine if they are collecting the correct amounts. Keep in mind some jurisdictions tax the entire amount including nightly rate, fees AND Airbnb service fee, and some only tax the nightly rate and cleaning fee. You would have to contact each jurisdiction to determine how they calculate the amount they tax. 

 

Vrbo - Taxes

If you list on Vrbo (no cost to create a listing), they DO list the percentages along with who they are collecting for and what they base the calculation on. All platforms provide one lump sum to the taxing jurisdictions, (as far as I know),  as it would be too cumbersome for any platform to provide individual records of taxes paid.

 

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What some jurisdictions have done is to require mandatory registration of all STRs and require Airbnb to require Hosts to upload their license number prior to listing. This allows them to better monitor who is paying the required taxes and who isn't. Some local jurisdictions require Hosts to still report their earnings (usually monthly or quarterly) and then indicate that Airbnb is collecting and remitting and then report -0- taxes need to be paid.

 

 

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