More states require short-term rental marketplaces like Airbnb and Vrbo to collect lodging taxes

A growing number of state governments are requiring short-term rental (STR) marketplaces such as Airbnb and Vrbo to collect lodging taxes when they collect payment from guests. It’s an efficient way to make sure lodging taxes go into government coffers.

Many states changed their requirements for STR marketplaces after 2018, when the Supreme Court overruled a long-standing physical presence rule in South Dakota v. Wayfair, Inc. The decision allowed states to require remote sellers to collect and remit sales tax. Other states have passed laws requiring STR marketplaces to collect lodging taxes more recently.

In Louisiana, for example, a new law includes accommodation intermediaries under the definition of “marketplace facilitators,” which are required to collect and remit sales and use tax. The law defines accommodation providers as those who facilitate accommodation rentals to transient guests through a marketplace but don’t own the accommodations offered for rent.

As of July 1, 2025, intermediaries that exceed the sales tax threshold of $100,000 or have a physical presence in the state are required to collect and remit sales tax on STR transactions. Starting January 6, 2025, accommodation intermediaries must also collect and remit state hotel and motel occupancy taxes.

The law creates an exception for shared hotel brand arrangements in which a hotel is operated as a hotel franchise or under management agreement. The owner of the brand — such as Hilton or Marriott — isn’t considered a marketplace facilitator and the hotel itself is responsible for lodging tax compliance.

Louisiana STRs are subject to several different lodging taxes, including state-administered sales and occupancy taxes and local sales and occupancy taxes and fees. STR operators in Louisiana are required to register with the Louisiana Department of Revenue and may need to register with their local tax authority as well. See our Louisiana vacation rental tax guide for more on short-term rental taxes in the state.

Maryland passed a new law earlier this year requiring accommodations intermediaries to collect and remit local hotel rental taxes to the state Comptroller rather than to each county. The measure’s start date was delayed until 2027 to give jurisdictions more time to prepare for implementation. 

Starting July 1, 2027, STR marketplaces with at least $100,000 in annual sales or 200 or more booking transactions will be required to collect county lodging taxes and remit them to the state. Marketplaces were already required to collect state sales taxes from guests when a rental is paid for. See our Maryland vacation rental tax guide for more on STR lodging tax.

More than 30 other state tax authorities already require STR marketplaces to collect lodging taxes:

• Alabama: Accommodations intermediaries have been required to collect and remit state and local transient occupancy taxes since 2024.
• Arizona: The state requires all STR marketplaces to collect and remit state and local taxes on STRs.
• Arkansas: Marketplaces that arrange for the use of accommodations and are located in Arkansas or have economic nexus in the state are required to collect state lodging taxes when the listing is booked.
• Connecticut: Marketplaces are required to collect and remit room occupancy tax for all their listings.
• Florida: Out-of-state businesses selling into Florida that have any number of transactions with total sales over $100,000 in the prior calendar year must collect lodging taxes on transactions.
• Georgia: The state has required market facilitators to collect lodging taxes since 2020.
• Idaho: STR marketplaces are responsible for collecting all taxes due on lodging booked through them.
• Illinois: Starting January 6, 2026, STR marketplaces will be required to pay Illinois lodging taxes and can collect these taxes from guests when the stay is paid for.
• Indiana: STR marketplaces are required to collect Indiana short-term rental lodging taxes for hosts when the listing is booked.
• Iowa: Marketplaces are required to collect lodging taxes when the listing is booked.
• Maine: “Transient rental platforms” are required to collect sales tax from guests when listings are booked.
• Minnesota: Marketplaces are responsible for collecting all state taxes due on lodging booked through them. 
• Mississippi: Marketplaces that have sales exceeding $250,000 per year in Mississippi are required to collect taxes on lodging booked through them.
• Montana: STR marketplaces are required to collect state lodging taxes from guests when a rental is paid for.
• Nebraska: Marketplaces are required to collect and remit state-administered sales and lodging taxes on STR stays they facilitate.
• New Hampshire: “Rental facilitators” are required to collect state lodging taxes for their listings.
• New Jersey: “Transient space marketplaces” that collect payment for STRs are responsible for collecting state-administered lodging taxes for all their listings.
• New York: Marketplaces are required to collect state-administered lodging taxes on behalf of hosts when they process payments for listings.
• North Carolina: Marketplace facilitators whose gross sales exceed $100,000 or 200 transactions yearly sourced to North Carolina must collect and remit state sales tax on behalf of sellers, including STR operators.
• North Dakota: Marketplace facilitators without physical nexus in the state that have taxable sales exceeding $100,000 in the current or prior calendar year are required to certify to sellers (STR operators) that they will collect and remit all state-administered sales and lodging and local sales and use taxes.
• Oklahoma: Marketplace facilitators are required to collect state lodging taxes from guests when an STR stay is paid for or notify purchasers that lodging tax is due on the rental. 
• Oregon: According to state law, whoever collects payment for STRs, including operators or marketplaces, is responsible for collecting and remitting lodging tax.
• Rhode Island: Hosting platforms are required to collect and remit the state hotel tax and ensure all properties on STR platforms are registered with the state.
• South Carolina: “Online travel companies” are required to collect state-administered lodging taxes.
• South Dakota: Marketplaces are required to collect and pay lodging taxes for all accommodations rental transactions within the state.
• Tennessee: STR marketplaces are required to collect lodging taxes on transactions they facilitate within the state.
• Texas: STR marketplaces must collect the state portion of lodging tax for bookings on their sites.
• Vermont: Marketplaces are responsible for collecting state meals and rooms tax, local option tax, and a short-term rental surcharge.
• Virginia: Marketplaces are required to collect and remit all state and local lodging taxes for their listings.
• Washington: Marketplaces are required to collect lodging taxes on behalf of operators.
• West Virginia: Marketplaces are required to collect lodging taxes from guests when the rental is paid for.
• Wisconsin: Marketplaces are required to collect lodging taxes for hosts when the listing is booked.
• Wyoming: Marketplaces are required to collect lodging taxes on behalf of hosts when guests pay for their rentals.

In some cases, STR marketplaces may be required to collect state taxes but not local taxes. And in some states, STR operators are still required to register with tax authorities and file lodging tax returns even if taxes are being collected for them by a marketplace. It’s important to understand both state and local lodging tax obligations, and which lodging taxes are being collected for you.

Avalara MyLodgeTax can help short-term rental hosts simplify and automate lodging tax compliance. If you have tax questions related to your STR property, drop us a line and we’ll get back to you with answers.