The Dallas hotel occupancy tax is 15% of the room price, made up of a 6% state tax and a combined 9% in city taxes. It applies to hotels, motels, bed-and-breakfasts, and short-term rentals booked through Airbnb, VRBO, or any similar platform. On a $200 room, that adds $30 to the bill.
How the 15% Breaks Down
- 6% state tax, set and collected by the Texas Comptroller.1Texas Comptroller of Public Accounts. Hotel Occupancy Tax
- 7% City of Dallas general hotel occupancy tax under Dallas City Code Section 44-35, which funds tourism promotion and convention center operations.2American Legal Publishing. Dallas Code of Ordinances – Section 44-35 Levy; Amount; Disposition of Revenue
- 2% City of Dallas venue project tax, which finances expansion of the Kay Bailey Hutchison Convention Center and renovation of Fair Park, and continues while venue project bonds remain outstanding.3American Legal Publishing. Dallas Code 44-49 – Levy of Tax; Amount; Duration
Guests see one combined charge on the receipt. The state and city portions travel on different filings and different deadlines, which matters only to operators.
Which Stays Are Taxed
The tax reaches traditional lodging and short-term rentals alike. For the state’s 6% share, a room has to cost at least $15 per day for the tax to attach.1Texas Comptroller of Public Accounts. Hotel Occupancy Tax Stays under 30 consecutive days are taxable. At 30 days, the guest becomes a permanent resident and the tax stops.
Short-term rental hosts have the same collection duty as hotels. The City of Dallas has no tax agreement with any booking platform, so a host cannot count on Airbnb or VRBO to handle the city tax.4City of Dallas. Short-Term Rentals (Hotel Occupancy Tax) Even when a platform collects the state’s 6%, the host still owes the city’s 9% and files separately.
Who Is Exempt
The 30-Day Permanent Resident Rule
A guest who occupies a room for 30 or more consecutive days without interruption in payment owes no hotel tax.5Texas Comptroller of Public Accounts. Hotel Occupancy Tax Exemptions How that plays out depends on notice. A guest who gives the hotel written notice of an intent to stay at least 30 days is exempt from the notification date forward. A guest who gives no written notice pays tax for the first 30 days and becomes exempt on day 31.6Texas Film Commission. Hotel Occupancy Tax Exemptions
If a guest claims the exemption up front and then checks out before hitting 30 days, the hotel is liable for the uncollected tax. Many operators collect the tax during the stay and refund or credit it once the guest actually reaches day 30.6Texas Film Commission. Hotel Occupancy Tax Exemptions
Government and Nonprofit Travelers
Certain designated Texas state employees, including judicial officials, agency heads, and members of the Texas Legislature, are exempt from both state and local hotel taxes on official business. They carry a hotel tax exemption photo ID or card from their agency or the Comptroller.5Texas Comptroller of Public Accounts. Hotel Occupancy Tax Exemptions
Employees and representatives of nonprofit religious, charitable, or educational organizations traveling on official organizational business are exempt from the state’s 6%.5Texas Comptroller of Public Accounts. Hotel Occupancy Tax Exemptions Whether the city’s 9% is also waived turns on the specific documentation presented. Operators have to record the reason for every exemption, hold on to the supporting paperwork, and subtract documented exemptions from gross receipts when calculating taxable revenue.
Registering as an Operator
Before a hotel or short-term rental can start filing and paying the city tax, it needs a registration form on file with the City of Dallas.4City of Dallas. Short-Term Rentals (Hotel Occupancy Tax) Registration goes through the city’s online portal at dallas.munirevs.com and asks for a taxpayer identification number or Social Security number, the property’s physical address, and the business name. There is no fee to register for HOT.7City of Dallas. Short-Term Rentals
Short-term rental owners register separately with Dallas Code Compliance as well, a process that involves a property inspection and a Certificate of Occupancy.8City of Dallas. Short-Term Rentals
Filing and Paying
City reports and payments are due by the 15th of the month after the tax was collected. January collections are due February 15. If the 15th lands on a weekend or holiday, the deadline moves to the next business day.4City of Dallas. Short-Term Rentals (Hotel Occupancy Tax)
Filing runs through MUNIRevs. The portal takes e-checks at no extra cost and credit cards with a 2% processing fee, and operators can also mail a printed report with a check payable to the City of Dallas.9City of Dallas. Short-Term Rentals (Hotel Occupancy Tax) General Information
State tax is handled separately through the Texas Comptroller. Operators who file and pay the state portion on time can take a 1% discount on the state tax owed.1Texas Comptroller of Public Accounts. Hotel Occupancy Tax
Late Penalties and the On-Time Discount
Filing and paying the city by the 15th earns a 1% discount on the city taxes due for that period.10City of Dallas. Hotel Occupancy Tax General Information After that, the cost of being late climbs:
- 1 to 10 days late (the 16th through the 25th): full tax owed, no discount, no penalty yet.
- 11 to 30 days late: a 15% penalty on the unpaid tax.
- More than 30 days late: the 15% penalty plus 10% annual interest, accruing from the day after the original due date.
An operator who fails to collect the tax, file a report, pay when due, or files a false report violates the Dallas City Code and faces a fine of up to $500.11City of Dallas. Administration of Hotel Occupancy Tax City of Dallas Incomplete or unsigned reports get sent back and are treated as delinquent, with penalties and interest running until the corrected report reaches the city.
Keeping the Records
Texas requires operators to keep occupancy tax records, including exemption certificates and supporting documentation, for at least four years. The City of Dallas can audit those records, and an incomplete file during a review can leave the operator owing tax on stays that were treated as exempt.
A permanent-resident exemption, for instance, needs the guest’s written notice (if one was given), the dates of the stay, and proof of uninterrupted payment.10City of Dallas. Hotel Occupancy Tax General Information Without the paper trail, the city will treat the stay as taxable and assess the full amount plus any penalty and interest.