Short-Term Rentals in Little Elm, TX (2026)
2 verified short-term rentals rules for Little Elm, Texas, sourced directly from the municipal code and official government pages.
Verified from official government sources
Taxes & Fees
Little Elm imposes a 7% local hotel occupancy tax on all short-term rentals, collected from guests and remitted to the town. The state of Texas adds a 6% hotel occupancy tax under TX Tax Code Chapter 156, bringing the combined rate to 13%. Monthly or quarterly filing is required depending on tax volume. Late payment triggers a 5% penalty plus 10% annual interest after 60 days.
Little Elm Short-Term Rental Taxes & Fees
Some RestrictionsTex. Tax Code Sec. 156.001, 156.051
Sec. 156.001. DEFINITIONS. (a) In this chapter, "hotel" means a building in which members of the public obtain sleeping accommodations for consideration. ... (b) For purposes of the imposition of a hotel occupancy tax under this chapter, Chapter 351 or 352, or other law, "hotel" includes a short-term rental. In this subsection, "short-term rental" means the rental of all or part of a resid...
Occupancy Limits
Little Elm caps short-term rental occupancy at two adult guests per bedroom plus no more than two additional adults, with an absolute maximum of ten persons including adults and children. This limit applies regardless of property size. Violations are cited daily as separate offenses with fines up to $500 per day.
Little Elm Short-Term Rental Occupancy Limits
Light RestrictionsTex. Property Code Sec. 92.010 (Occupancy Limits)
Sec. 92.010. OCCUPANCY LIMITS. (a) Except as provided by Subsection (b), the maximum number of adults that a landlord may allow to occupy a dwelling is three times the number of bedrooms in the dwelling.(b) A landlord may allow an occupancy rate of more than three adult tenants per bedroom:(1) to the extent that the landlord is required by a state or federal fair housing law to allow a hig...
Looking for Denton County county-wide rules?
County ordinances apply to unincorporated areas and may supplement Little Elm city rules.
Short-Term Rentals in Denton County →