Austin STR Rules for 2026: Licensing, Fees and Taxes

The Landscape Shifted: What You Need to Know

Austin has licensed short-term rentals since 2012, but the rules were rewritten in 2025. On September 11, 2025, City Council adopted Ordinance No. 20250911-012, which repealed and replaced Chapter 4-23 of the city code. Platform duties under the new framework took effect on July 1, 2026: listings must carry a license field, and platforms are to remove unlicensed listings when the city asks.

If you own a property in Austin and rent it short-term, whether full-time or occasionally, this guide covers what changed, what a license costs, and how to stay compliant.

What Changed in 2025?

Licensing Rules

A license is required for any residence rented for fewer than 30 consecutive days. In February 2025, Council made short-term rental an accessory use in all residential zoning districts for properties that hold a valid license, and the September 2025 ordinance rewrote the licensing chapter.

• Most STRs require a license. If you rent your property (or even part of it) for fewer than 30 consecutive days, you need one. Properties in the extraterritorial jurisdiction (ETJ) do not need a city license, and limited-purpose jurisdiction properties need a license but no city hotel tax. The city publishes a jurisdiction map to check your address.
• Licenses have a set term and must be renewed. Confirm the current license term and renewal window on the city's STR page before you apply.
• The license is not transferable. A new owner must apply for their own. Tenants may operate an STR with the landlord's written authorization.
• License types. The city lists Type 1, Type 2 Residential, Type 2 Commercial and Type 3 applications. Check the city's application forms to see which one fits your property.

Limits Are per Site, Not per Neighborhood

Council considered geographic density caps in 2025 but did not adopt them (Austin Monitor). The limits that apply today are set per site:

• Single-family sites: one individual may operate up to two STR units on a site. Additional STRs elsewhere are allowed if they are at least 1,000 feet apart.
• Multifamily residential: the greater of one unit or 10 percent of the units.
• Mixed-use (four or more residential units plus a commercial use): the greater of one unit or 25 percent of the units.

Operating Standards

Operational rules apply to licensed STRs. Per the city, they include:

• A designated local contact in the Austin metro area (Travis, Williamson, Hays, Bastrop and Caldwell counties) who must respond within two hours of an emergency notice. The city's STR page and the 2025 ordinance word the residency rule and the deadline for reporting changes differently, so confirm the current local contact requirements with the city.
• An information packet for guests, covering the local contact, noise rules, parking, trash schedule and burn bans.
• Sound limits: no sound equipment above 75 dB at the property line from 10 a.m. to 10 p.m., and no sound audible beyond the property line from 10 p.m. to 10 a.m.
• Notification of the local contact to properties within 100 feet.

The city's page does not list an occupancy cap, so confirm any occupancy or parking requirements for your property type with the city.

Platform Duties Since July 1, 2026

Since July 1, 2026, booking platforms must require a license number on Austin listings, remove unlicensed listings when the city sends a delist notice, and not collect booking fees for unlicensed STRs. Separately, platforms have collected and remitted the city's hotel occupancy tax since April 1, 2025. Advertising a property as an STR without a license is prohibited.

What this means:

• Your license number needs to appear on your listing.
• The city can ask platforms to remove unlicensed listings.
• The city's pages do not publish a penalty schedule. Confirm current penalties with the city rather than relying on figures from third parties.
• The city has said it is launching a new application and license management tool, and details on how delisting requests are phased in may change. Check the city's current guidance for timing.

If you are not yet licensed, treat licensing as your first priority. Complaints can be reported to 3-1-1, so unlicensed operation can come to the city's attention.

Step-by-Step: How to Get Licensed

Step 1: Check Your Address and Limits

Confirm your address is inside the city's licensing jurisdiction and that the per-site limits above allow your unit. Start from the City of Austin STR page.

Step 2: Choose Your License Type and Gather Documents

Each license type has its own application form, linked from the city's STR page. Proof of insurance and a certificate of occupancy are no longer required for new applicants or renewals. Check the form for your type for the full list of required documents, since the city's page does not list them all.

Step 3: Submit the Application

Apply using the application form for your license type, linked from the city's STR page. The city has said an easier-to-use online application and license management tool is coming, so check the city page for the current way to submit.

Step 4: Pay the License Fee

The city charges a license fee plus a notification fee, and fees are non-refundable. Fees are set each fiscal year and have been under review, so check the city's STR page for the current amount before you apply.

Step 5: Add Your License Number to Your Listings

Once approved, you receive a license number to enter in the license field on your booking platforms (Airbnb, VRBO and others). Renew before your license expires. If a license has been expired for less than 30 days, the city allows an extension request by email. Otherwise you reapply.

What Happens If You Don't Comply?

Complaints can be reported to 3-1-1, and a neighbor's report can bring a property to the city's attention. Unlicensed operation combined with unreported income compounds the liability.

Tax Implications

Getting your tax posture right matters. Key points for Austin STR owners:

• City hotel occupancy tax (HOT): the City of Austin rate is 11 percent: a 9 percent occupancy tax plus a 2 percent venue project tax. Platforms must collect and remit the city HOT for owners who book through them. Owners still file a quarterly report of tax collected by each platform, including a zero report when there were no rentals, through an Austin Finance Online account.
• State hotel tax: the State of Texas charges 6 percent on short-term rentals of houses, condos and apartments. Online travel companies and other third-party rental companies may also be responsible for collecting it. Confirm with the Texas Comptroller how it applies to your bookings.
• Federal income tax: STR income is taxable, and how it is reported depends on your facts. Consult a CPA.

None of this is tax advice. A CPA familiar with short-term rentals can save you far more than they cost.

Common Questions

• Is there a flat owner-occupancy requirement? The city's pages do not document one. License types distinguish owner-occupied from non-owner-occupied properties, and the per-site limits above still apply.
• Is there a minimum stay? A short-term rental is defined as a stay of fewer than 30 consecutive days. The city's pages do not list a separate minimum-night rule.
• Can I advertise without a license? No. Advertising an unlicensed property as an STR is prohibited.

Black Key Can Handle the Complexity

If this feels overwhelming, it's because it is. STR compliance requires legal knowledge, operational discipline, and ongoing attention.

For the owners we work with, Black Key manages the full compliance lifecycle: license applications, operational compliance, guest management, tax-ready reporting, and ongoing regulatory updates. You focus on your property; we handle the rest.