Do I just add local taxes into my nightly?

in
Saint Paul, MN
Level 2
339 Views

So the only way I can collect local taxes (since Airbnb doesn't do this where I live) is to add the taxes into my nightly rate? Unlike VRBO, which adds them in for you?

 

The only reason I'm asking is because my prices fluxuate throughout the year, and it would be a pain to go back and try to change them.

 

Thanks in advance!

-Shelly

2 Replies

Re: Do I just add local taxes into my nightly?

in
La Quinta, CA
Level 10

 @Shelly1, there are a couple of ways you can collect the occupancy tax.  I use the nightly rate, which is the simplest.  Therefore, I factor in a 10% occupancy tax into my pricing.  Of course, since I do that, Air BNB collects a wee bit more host fee.  Alternatively, you can collect it separately by requesting the tax after the reservation is confirmed.  Now should the reservation be cancelled you have to remember to refund the tax collected.  Personally, I don't like the hassle of the second option.  

 

If you include it in the nightly rate, be sure to mention it in your description.  Also, if you have Smart Pricing, be sure to factor in the tax when determining the lowest rate if you decide to include tax in your nightly rate.

Re: Do I just add local taxes into my nightly?

in
Saint Paul, MN
Level 2

Hi Linda-

So if I were to collect the tax after the reservation, I'm assuming I should state (somewhere in my listing) that taxes will need to be collected after reservations have been made? Just to be upfront with clients?

 

Frankly, VRBO makes this easy—they just add the tax onto the listing price. I think it's even in the same link where you can add a fee for cleaning.

Thanks,

Shelly

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