INDUSTRY SOLUTIONS: SHORT-TERM RENTAL

Take a permanent vacation from managing short-term rental tax

Let Avalara take over the complicated and intimidating task of keeping up with tax rules and rates, due dates, filing requirements, and more with Avalara MyLodgeTax.

INDUSTRY SOLUTIONS: SHORT-TERM RENTAL

Take a permanent vacation from managing short-term rental tax

Let Avalara take over the complicated and intimidating task of keeping up with tax rules and rates, due dates, filing requirements, and more with Avalara MyLodgeTax.

Built to work with the vacation rental platforms you already use

HOW IT WORKS

The only automated tax solution for short-term rentals

Licensing and permits

Avoid fines or penalties and continue to legally rent out your property.

Identifies multiple state and local tax agencies where you need to register your property

Applies, maintains, and annually renews each lodging tax license and permit on your behalf for the life of the account

Consolidate data

Simply sign in once a month to report lodging revenue from Airbnb, Vrbo, or any other platform — it’s that easy.

Allows for quick and simple input of revenue

Consolidates all revenue information in one place

Calculate rates

Improve accuracy and reduce the risk of overpaying or underpaying.

Monitors new tax rules and rates for city, county, and state jurisdictions

Determines portion of lodging tax responsibility between you and vacation rental marketplaces

Process returns

Save time and hassle

Automates lodging tax returns based on your monthly transaction data

Prepares, files, and remits lodging tax based on jurisdiction deadlines — for one location or thousands

Allows quick access to your lodging and tax filing payment history

Pricing

Pricing

 

MyLodgeTax
(1-5 properties)


Starting at
$27/mo per property*
*$299 one-time setup fee not included


Buy now

MyLodgeTax Pro
(6+ properties)


Starting at
$39/mo per property*
*$299 one-time setup fee not included


Buy now

Lodging tax rates
Lifetime processing of lodging licenses, permits, and renewals
Automated returns preparation and filing
Centralized library of tax return data
Bulk information upload for easy setup  
Enhanced search of multiple properties  
Lodging solutions for property managers and vacation rental ownership groups  

We also have a hospitality tax solution for:

  • Hotels
  • Larger property owners

Frequently asked questions

Yes. Renting a property is considered a business. To avoid penalties, you must obtain the proper business license(s) in order to rent it out legally. Avalara MyLodgeTax will identify which licenses and permits you need. Setup takes about 30 days as we work with various tax authorities on your behalf. The cost for each license is the rental property owner’s responsibility. After that, simply sign in to our secure online application and report your rental revenues — that’s it! We file your returns, remit tax payments, and renew each license, on your behalf, for the life of the account.

It’s true that you can do this on your own without MyLodgeTax. When it comes to taxes, in general, the work involved becomes complicated, tedious, and prone to error when done manually. Much like income tax returns, people choose to pay someone else to do it for convenience, less risk, better accuracy, and to save money and time. Lodging tax compliance is no different in that way — and MyLodgeTax makes it so easy!

Yes. Short-term renting of your vacation property triggers the requirement to collect and remit lodging taxes, which go by many names across the U.S. (e.g., occupancy tax, lodging tax, room tax, accommodations tax, bed tax, hotel tax, etc.). However, lodging taxes are different from the income taxes required by the IRS and the states, which are filed once a year. Lodging taxes are paid to city, county, and/or state tax agencies each month or quarter. They play an important part in funding the infrastructure where your rental resides such as beach preservation, transportation systems, airline subsidies, snow removal, and other operating costs to support and encourage tourism. As the popularity and growth of vacation rentals increase, so does the enforcement of these taxes. Tax agencies nationwide commonly monitor vacation rental platforms in search of violators.

In some cases, you might be free from an obligation to collect and remit lodging tax, but the only way to accurately determine your lodging tax requirements is to review the specific state and local laws for the location of your property. In most cases, vacation rental marketplaces have signed agreements with the state to collect and remit all lodging taxes due, leaving vacation rental owners still responsible for collecting and remitting taxes levied by their county or city governments. Sometimes, the vacation rental marketplace will collect and remit both state and local taxes, but in some situations, the rental owner still must file regular tax returns showing their exemption from needing to collect and remit. In all cases, if you rent your property through your own website, you’re required to collect and remit those taxes yourself. 

And no matter who collects and files, the property owner must receive and maintain all business and vacation rental licenses and/or permits.

Many vacation rental owners are unaware or confused by the myriad of tax requirements. As a result, owners sometimes go months or years without paying. If you’re in this situation, there’s good news: Most state tax authorities have what’s typically called voluntary disclosure programs.  MyLodgeTax can work with you on the best solution to resolve any back tax issues.

Exemptions vary by state, and some by city and counties within a state. Non-profit groups, church/religious organizations, certain government officials, and universities are common groups that may be exempt from these taxes, but not always. Most states require the exempt organization to have an exemption certificate and pay with organization funds.

If we determine you are not required to pay and collect these taxes, we will give you a full refund of your license fee and cancel your service without any additional charges.

No. You can cancel at any time without any obligation. However, you are still obligated to collect and pay these taxes.

No. Income taxes and lodging taxes are not the same. Income taxes come out of your personal income, whereas lodging taxes are calculated off of revenue earned from renting out your home or room.

The definition of a short-term rental (and therefore taxable) varies by location. In some states, short-term rentals are defined as less than 28 days but can be as high as 185 days in other states. In most states, a 30-day rental or monthly rental is considered long-term and therefore exempt from these taxes. The bottom line is that each tax jurisdiction must be thoroughly researched to identify and understand specific rules.

These taxes are charged on the total payments (money or value) received from the renter, including rent, cleaning fees, and any other mandatory fees such as a booking fee, extra person charge, pet fee, etc. Refundable deposits are not taxable.

Here’s what our customers have to say

“We have two rental homes and we’re very happy with the sales tax being collected and forwarded by Avalara…(they) also obtained the business license for us."

—John Nock, St. Augustine, Florida

 

"When I found Avalara, my whole life changed. They do the taxes for me. They remind me. All I have to do is tell them how much rental income I had for the previous month. It’s so simple…the absolute best.”

—Katherine Shegrud, St.Thomas, USVI

 

“My husband and I acquired five vacation rentals…we partnered with Avalara…and it’s been an amazing experience…it reduces the workload for our vacation rentals astronomically monthly for us.”

—Bree Hewitt, Nashville, Tennessee

 

“I bought a mountain home as a second home. One of my main concerns was how to deal with the taxes. (Avalara) will handle all of my taxes, city, county, and state and took all the stress off of me.”

—Frank Vawter, North Georgia

Automate your lodging taxes today

Automate your lodging taxes today