Hotel Tax Rates by Major U.S. Jurisdiction
Representative combined lodging-tax rates for major markets. Rates change frequently and can vary by exact address and property type—use this as a starting point and always confirm with the jurisdiction.
| Jurisdiction | State | Local | Combined | Per-night fee | Remittance |
|---|---|---|---|---|---|
| New York City, NY | 4% | 10.75% | 14.75% | $3.50 | Quarterly |
| Los Angeles, CA | 0% | 14% | 14% | — | Monthly |
| San Francisco, CA | 0% | 14% | 14% | — | Monthly |
| Houston, TX | 6% | 11% | 17% | — | Monthly |
| Austin, TX | 6% | 9% | 15% | — | Monthly |
| Chicago, IL | 6% | 11.4% | 17.4% | — | Monthly |
| Las Vegas, NV | 0% | 13.38% | 13.38% | — | Monthly |
| Orlando, FL | 6% | 6.5% | 12.5% | — | Monthly |
| Miami, FL | 6% | 7% | 13% | — | Monthly |
| Atlanta, GA | 4% | 12% | 16% | $5.00 | Monthly |
| Denver, CO | 2.9% | 12.85% | 15.75% | — | Monthly |
| Nashville, TN | 7% | 11.25% | 18.25% | $2.50 | Monthly |
Hotel Tax Calculator
Enter a nightly rate, the number of nights, and a market to estimate the occupancy tax and total cost of a stay.
Hotel Occupancy Tax Calculator
Estimate the lodging tax on a stay. For planning only—verify the exact rate with your jurisdiction.
- Room (2 nights)
- $258.00
- Occupancy tax (14.75%)
- $38.06
- Per-night fee ($3.5/night)
- $7.00
- Total tax
- $45.06
What is Hotel Occupancy Tax (TOT)?
Hotel occupancy tax—also called transient occupancy tax (TOT), lodging tax, bed tax, or room tax—is a tax imposed on the price of short-term accommodations. It is charged to the guest, collected by the hotel, and remitted to one or more taxing authorities. Unlike general sales tax, occupancy tax specifically targets stays below a defined length (the “transient” threshold, often 30 days), and the revenue frequently funds tourism, convention centers, and local infrastructure.
The critical thing for owners to understand is that occupancy tax rarely comes from a single source. A guest's bill usually carries several stacked taxes—state, county, city, and sometimes a special tourism or stadium district—each with its own rate, rules, and filing calendar.
State vs. City and County Hotel Tax Rates
Most states levy a statewide lodging or sales tax on hotel rooms, and then authorize counties and cities to add their own local occupancy taxes on top. In Texas, for example, the state hotel occupancy tax is 6%, but a city like Houston layers on additional local taxes that push the combined rate to roughly 17%. In other markets—Las Vegas, Los Angeles—there is little or no state-level lodging tax, and nearly the entire burden is local.
This layering is why two hotels a few miles apart can carry materially different tax rates, and why multi-property owners operating across jurisdictions need a filing process built for each location rather than a one-size-fits-all approach. See the quick-reference table above for how state and local portions combine across major markets.
Who is Exempt from Paying Hotel Tax? (Exemption Forms & Rules)
Exemptions are one of the most audited areas of hotel tax, because the burden of proof sits with the hotel, not the guest. If you waive tax without collecting valid documentation, you remain liable for it. The most common exemption categories include:
- Long-term (permanent) residents. Guests who stay beyond the transient threshold—commonly 30 or 31 consecutive days—are often exempt, sometimes retroactively to day one.
- Federal government travelers. Federal employees on official business, typically paying with a qualifying GSA SmartPay card, are frequently exempt with a valid certificate.
- State & local government. Exemptions vary by jurisdiction—some exempt state or local employees, many do not. A jurisdiction-specific form is usually required.
- Certain nonprofit & diplomatic guests. Qualifying nonprofit, educational, religious, or foreign-diplomatic guests may be exempt where the jurisdiction recognizes the status and the correct form is on file.
In every case, the exemption is only as good as the paperwork behind it. Collect the certificate at check-in, verify the payment method where required, and retain the documentation for your records.
Official Hotel Tax Exemption Certificates
Download exemption forms directly from the issuing authority to ensure you always have the current version.
Links open the issuing authority's official page in a new tab. Cedar Crest CPA is not affiliated with these agencies.
How to Calculate and Remit Hotel Taxes
Calculating occupancy tax starts with identifying the taxable room charge, then applying every rate that applies at the property's exact location. A reliable process looks like this:
- 1Determine the taxable base. Start with the room charge. Include mandatory fees (like resort fees) where your jurisdiction taxes them, and exclude truly optional charges that are taxed separately or not at all.
- 2Apply every stacked rate. Layer the state, county, city, and any special-district rates that apply. Add flat per-night fees where they exist (e.g., a state tourism fee).
- 3Honor valid exemptions. Zero out tax only where you hold a valid, retained exemption certificate and, where required, a qualifying payment method.
- 4Reconcile OTA-collected tax. Compare what marketplace facilitators (Expedia, Booking.com) remitted against your total liability, and account for any gap you're responsible for.
- 5File and remit on schedule. Submit each jurisdiction's return by its deadline—monthly or quarterly depending on the location—and keep documentation audit-ready.
For multi-property owners, this quickly becomes a lot of moving parts across many jurisdictions. Our lodging tax compliance service handles registration, reconciliation, and on-time filing so nothing slips—and a free consultation is the fastest way to find out where you stand.
Frequently Asked Questions (Hotel Tax FAQs)
Does hotel tax apply to stays over 30 days?
In most jurisdictions, no. Many states and cities treat a guest who stays beyond a set threshold—commonly 30 or 31 consecutive days—as a 'permanent resident,' making the stay exempt from transient occupancy tax. Some jurisdictions refund tax collected during the first 30 days once the guest crosses the threshold, while others require the exemption to be established up front with a written agreement. The exact rule, day count, and documentation vary by location, so confirm the threshold with your specific city and state before waiving tax.
Are government employees exempt from local hotel occupancy tax?
It depends on the level of government and the jurisdiction. Federal employees on official travel paying with a government charge card (or by direct government billing) are frequently exempt, but only when they present a valid exemption certificate and the payment method qualifies. State and local government exemptions vary widely—some states exempt federal but not state employees, and many require a specific form on file at check-in. Always collect and retain the correct exemption certificate; without it, you remain liable for the tax even if the guest was eligible.
How do OTAs like Expedia and Booking.com handle hotel tax collection?
It varies by platform, contract model (merchant vs. agency), and jurisdiction. Under many marketplace-facilitator laws, the OTA is required to collect and remit certain occupancy taxes on the portion of the booking it processes—but the tax base the OTA uses (often the wholesale rate) can differ from your retail rate, leaving a gap you're responsible for. The safest approach is to reconcile OTA-remitted tax against your total liability every period so nothing falls through the cracks.
What is the difference between hotel tax, occupancy tax, and TOT?
They're largely different names for the same thing. 'Transient occupancy tax' (TOT), 'hotel occupancy tax' (HOT), 'lodging tax,' 'bed tax,' and 'room tax' all refer to a tax imposed on short-term accommodation charges. The specific name and rate depend on the jurisdiction, and a single hotel bill often carries several stacked taxes (state, county, city, and special-district) that together make up the total lodging tax.
Is hotel tax charged on resort fees, parking, or other add-ons?
Sometimes. Many jurisdictions tax mandatory charges that are a condition of occupancy—such as resort fees—as part of the taxable room charge, while truly optional services (parking, dining, spa) may be taxed differently or not at all under lodging tax. Because the taxable base is defined locally, misclassifying add-ons is a common source of audit exposure.
What happens if a hotel under-collects or fails to remit occupancy tax?
The hotel—not the guest—is generally on the hook. Jurisdictions can assess the uncollected tax plus penalties and interest, and repeated non-compliance can trigger audits across multiple periods. If you discover you're behind, a voluntary disclosure agreement can often cap the look-back period and waive penalties, but it's far cheaper to get the collection and remittance process right from the start.
This guide is general information for educational purposes, not tax advice for your specific situation, and rates shown are illustrative. Hotel tax rules change and vary by jurisdiction. For guidance tailored to your properties, book a free consultation with a hotel CPA.