Georgia vacation rental tax guide

With a bounty of popular destinations including Atlanta, Savannah, and Athens, the Peach State offers ample opportunity for short-term rental (STR) businesses.

But these opportunities come with tax obligations. Like hotel stays, STRs in Georgia are subject to lodging taxes. Failure to comply with state and local tax laws can result in fines and penalties. Tax jurisdictions are increasingly making STR tax compliance a priority, so it’s important to address compliance before tax authorities address it for you.

Avalara MyLodgeTax put together this guide to help you comply with Georgia lodging tax law at the state level. Local jurisdictions such as cities or counties may have their own lodging tax rules. For more information on the tax rates and jurisdictions that apply to your rental’s specific location, use our lodging tax lookup tool.

No lodging tax guide is a substitute for professional tax advice. Consider this an asset to help you understand and prioritize your vacation rental questions and concerns. Questions pertaining to specific situations or out-of-the-ordinary conditions are best solved with a certified tax professional familiar with Georgia tax laws.

Lodging taxes are calculated as a percentage of the cost of your guest’s stay and added to the price on the bill. The guest pays the tax, but the STR operator is responsible for collecting and paying it to the proper tax authority.
 

What’s the definition of “short-term rental” in Georgia?

For tax purposes, STRs in Georgia are defined as reservations of up to 90 continuous days.
 

Who’s required to collect and file lodging taxes on short-term rentals in Georgia?

If you collect payment from short-term guests renting out a room, apartment, house, or other dwelling, you’re likely responsible for collecting, filing, and remitting lodging taxes to Georgia tax authorities.

Location is key to compliance

The location of your rental is a crucial piece of information for STR tax compliance. Your address determines which tax jurisdictions you’re required to report to, which taxes you need to collect, and the appropriate tax rates.

Use our lodging tax lookup tool to get a rate report specific to your Georgia rental’s address. The report includes the estimated total tax rate to collect from guests, number of required registrations, number and frequency of returns per year, and minimum number of rented days to qualify as a taxable stay.

It should be noted that tax rates and the rules governing them change frequently. Please consider your tax rate report to be informative rather than authoritative.
 

Local short-term rental regulations

STR operators in Georgia should be aware of the local regulations that apply to them, including rules covering:

• Legality
• Permits, licenses, and registration
• Zoning
• Advertising
• Neighborhood notification
• Building and housing standards

Homeowner associations (HOAs), condominium communities, co-ops, and landlords may also have specific rules regarding vacation rentals. It’s your responsibility to be aware of STR policies that apply to your property.

Before you can begin collecting taxes on your STR in Georgia, you’re legally required to register with the Georgia Department of Revenue. You can register online to receive a Georgia Tax Identification Number. You may also be required to register with local tax authorities. 

You’re not required to register with the state or collect Georgia state lodging taxes if all your bookings are made through a marketplace such as Airbnb or Vrbo.

Once you’ve registered with tax authorities, you’re ready to start collecting lodging taxes, which you’ll add to your guest’s bill when they pay for their stay.

Which lodging taxes apply to Georgia short-term rentals?

In Georgia, a number of different lodging taxes may apply to your STR, depending on your location. These can include:

Tax rates

Before you can begin collecting lodging taxes, you need to know the correct rate to charge to avoid compliance issues. Our lodging tax lookup tool can give you a rate report specific to your Georgia address.

What charges are taxable?

In Georgia, anything the host requires the guest to pay to use the accommodation is considered part of the accommodation sales price. This includes items such as cleaning fees, pet fees, rollaway bed fees, extra person fees, etc., whether they’re stated separately or rolled into the overall price of the accommodation.

What happens when my short-term rental marketplace (such as Airbnb or Vrbo) collects lodging taxes for me? 

In Georgia, STR marketplaces such as Airbnb and Vrbo are considered “marketplace facilitators” and are required to collect lodging taxes from guests and remit them to tax authorities. Individual hosts aren’t liable for the taxes that their marketplaces are required to collect.
 

Are guests ever exempt from taxes?

There are situations in which you aren’t required to collect lodging taxes in Georgia. For example, a guest who rents for a long term rather than a short term is exempt from lodging taxes. In Georgia, government officials or nonprofit organizations may also be exempt from lodging taxes on STRs in some cases. Exemption documentation may be required.

After you’ve collected taxes from your guests, it’s time to file your tax returns with the Georgia Department of Revenue. In Georgia, you’re required to file and pay electronically if you owe more than $500 for sales taxes. However, if you want to make tax payments by electronic funds transfer, you must file all sales tax returns electronically.

When do I need to file my returns?

You’ll be assigned a filing frequency and due dates when you register with the tax authority. For filing with the Georgia Department of Revenue, due dates are as follows:

I didn’t rent my property during this filing period. Am I still required to file a lodging tax return with the Georgia Department of Revenue?

Yes. STR operators registered with the Georgia Department of Revenue are required to file returns each assigned filing period, regardless of whether you had any STR income or collected lodging taxes. Such returns are commonly known as “zero dollar returns.” Local tax authorities may have their own requirements.

Are there penalties for filing taxes late?

Whether you choose to offer STRs through a marketplace like Airbnb or Vrbo, or directly to guests, you open the door to tax liability at the state and local level. As tax revenue is a major source of local funding, tax authorities are becoming more aggressive in their efforts to identify individuals and businesses out of compliance with tax laws. Failure to register with tax authorities and file lodging tax returns in Georgia on time may result in late fees, interest payments, and in extreme cases, legal action.

I’ve been offering short-term rentals without collecting lodging tax. What options do I have?

If you’re already operating an STR but not collecting lodging taxes, you may be in violation of Georgia tax laws. Take the time to review your legal responsibility (with a tax professional, if necessary) and understand the risk of continuing to not collect tax.

STR hosts in Georgia may be able to take advantage of a voluntary disclosure agreement (VDA). A VDA offers an opportunity for hosts to proactively disclose prior period tax liabilities in accordance with a binding agreement with the Georgia Department of Revenue. VDAs are offered to encourage cooperation with state tax laws and may result in some or all penalty and interest payments being waived.

Are there options for outsourcing lodging tax filing?

Yes. Many STR hosts in Georgia file several state and local lodging tax returns every year. Filing solutions such as Avalara MyLodgeTax can relieve this burden.