Taxes & Fees: Garden Grove vs Newport Beach
How do taxes & fees rules compare between Garden Grove, CA and Newport Beach, CA?
Newport Beach has fewer restrictions than Garden Grove.
Garden Grove, CA
Orange County
Garden Grove does not collect transient occupancy taxes from residential short-term rentals because the activity is prohibited in all residential zones. Only legally permitted lodging businesses in commercial zones collect TOT.
View full Garden Grove rules →Newport Beach, CA
Orange County
Newport Beach requires short-term rental hosts to collect and remit a Transient Occupancy Tax (TOT) of 10% on rental revenue for stays of 30 days or fewer under NBMC Chapter 3.16. Hosts must also maintain a city business license.
View full Newport Beach rules →Key Facts Comparison
| Fact | Garden Grove | Newport Beach |
|---|---|---|
| Residential STR Tax | Not applicable — STRs banned | - |
| Hotel/Motel TOT | Applies to commercial zones only | - |
| STR Permits | None issued for residential | - |
| Illegal STR Fine | Up to $1,000 per day | - |
| TOT Rate | - | 10% of rental revenue |
| Code Section | - | NBMC Chapter 3.16 |
| Applies To | - | Stays of 30 days or fewer |
| Filing | - | Monthly or quarterly |
| Contact | - | Finance Dept (949) 644-3150 |
Highlighted rows indicate differences between cities.
Garden Grove FAQ
Do I need to pay transient occupancy tax for a short-term rental in Garden Grove?
No, because short-term rentals are prohibited in all residential zones. Only legally permitted hotels and motels in commercial zones collect TOT.
What happens if I operate an illegal rental without paying taxes?
You face fines up to $1,000 per day for the illegal rental itself. You may also face state and federal tax consequences for unreported rental income.
Newport Beach FAQ
What is the hotel tax rate for short-term rentals in Newport Beach?
The Transient Occupancy Tax is 10% of the rental amount, collected from guests for stays of 30 consecutive days or fewer under NBMC Chapter 3.16.
Does Airbnb collect the tax for me?
Airbnb may collect and remit TOT under platform agreements with the city. However, hosts remain responsible for verifying compliance and should confirm with the Finance Department.
Do I need a business license for my short-term rental?
Yes. In addition to the STL Permit and TOT registration, hosts must maintain a current City of Newport Beach business license.
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