Lodging and Sales Use Tax

JohnAndDiana1
Level 2
Missoula, MT

Lodging and Sales Use Tax

Hello, can someone tell me how Air BnB handles Lodging and Sales Use Tax? Or, is that completley handled by the host?  Thank you.

2 Replies 2

@JohnAndDiana1 - depends on your location.  Airbnb does collect and remit Occupancy taxes to many locations.  They pay the sales tax directly since, well, they are officially making the sale, not you.  You will have to pay income tax on your earnings.  

https://www.airbnb.com/help/article/654/what-is-occupancy-tax--do-i-need-to-collect-or-pay-it

https://www.airbnb.com/help/article/481/how-do-taxes-work-for-hosts

https://www.airbnb.com/help/article/122/why-is-airbnb-requesting-my-taxpayer-information

Dawn240
Level 1
Maryville, TN

Yes...Airbnb and pays but how do I know they are paying the correct percentage since each area collects different percentage amounts of tax?