Collecting Local HOT taxes in Austin, TX

Karen1047
Level 1
Austin, TX

Collecting Local HOT taxes in Austin, TX

Hellow Airbnb hosting community,

How does everyone handle collecting the Austin HOT taxes? Thus far, I have been paying those taxes out of my pocket, which really isn't insignificant. I think it is fair for the guests to pay the HOT tax as they would have to pay staying in a hotel, but here are issues that arise from trying to collect:

1) I use intsa book, so the "Special Offer" function Airbnb suggests is useless.

2) I stay at Airbnb places all the time and have never been asked to pay additional money from a host for taxes outside of the payment to Airbnb and would be taken a back if I got a message from a host after booking asking for addional $. It doesn't present a full view of the price.

 

Why can't Airbnb create a function on the pricing page that lets host fill in the percentage of HOT their particular city mandates? This seems like it would be a priority for hosts who would like to stay in compliance with local laws.

 

Thoughts? Suggestions?

Thanks,

Karen

5 Replies 5
Helen910
Level 1
Miami, FL

Hi Karen,

 

did you figure this out? I am a new host and I am also paying the taxes out of pocket. 

Thanks, Helen 

James2241
Level 1
Austin, TX

Hi Karen, I am new to hosting also and I agree to what you are saying above.  I don't think guests would like to find out later that they have to pay MORE taxes.

 

 What I am doing in my listing is adding a Custom Tax that combines the City of Austin HOT and the State of Texas HOT for a total of 17%. Unfortunately, I will have to pay two separate entities -- an amount quarterly to Austin and then to the state.     But at least guests will know up front that there is a tax (as if they were staying in a hotel room).

 

Thanks, James

James - how did you add a custom tax?  

Hi @Jody163  check out this article for how to add custom taxes: https://www.airbnb.com/help/article/2523/how-do-i-add-taxes-to-my-listings

Karol22
Level 10
SF, CA

You can add a custom tax to your listing. Go to your listing settings in the Airbnb website (not app). Select the pricing section and scroll down to custom taxes. From there you can add the tax % and give it a name. Airbnb will collect this tax in addition to the accommodation fare, standard fees, cleaning fees, etc... and they will pay it out to you separately for each reservation. You will then be responsible for remitting this tax directly to the tax authority. 

 

If you use Custom taxes...

 

What’s taxed

  • Nightly rate (including Airbnb host fee)
  • Standard fees: management, community, and linen fees
  • Cleaning fees
  • Fees for additional guests

 

What’s not taxed

  • Airbnb guest fees
  • Security deposits

 

Check out this Airbnb article for more details: https://www.airbnb.com/help/article/2523/how-do-i-add-taxes-to-my-listings