Charles County, MD Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% of each transient charge
- Covered stays
- 120 days or fewer
- Return due
- 21st of each month
- Late interest
- 0.5% per month unpaid
- Late penalty
- 10% after one month overdue
- Enforcement
- Lien on hotel's real/personal property
- Administered by
- Director of Fiscal & Administrative Services
Summary
Charles County imposes a 5% Hotel Rental Tax on every transient charge for sleeping accommodations of 120 days or less under County Code Ch. 281, Art. VI. The definition of "hotel" reaches apartments, cottages, inns, motels, rooming houses and dwelling units, so short-term rental hosts and booking platforms are covered.
A tax of 5% is hereby imposed on each transient charge paid to a hotel or broker of a hotel located in Charles County.
Full Breakdown
Section 281-11 sets the rate: a tax of 5% is imposed on each transient charge paid to a hotel or broker of a hotel located in the county. Section 281-10 defines "HOTEL" broadly, including an apartment, cottage, hostelry, inn, motel, rooming house, tourist home, or dwelling unit, and defines "BROKER" to include anyone who receives or arranges payment for a transient charge "directly, indirectly, or through an online platform," which pulls Airbnb-style bookings into the tax. A "TRANSIENT" is an individual who occupies a hotel for a period not exceeding 120 days.
Under § 281-12, the hotel or broker must give the paying guest a bill that separately identifies the tax, collect it from the guest, and hold it in trust for the county until remitted. Section 281-13 requires a hotel or broker to file a signed monthly return with the Director of Fiscal and Administrative Services on or before the 21st day of each month, reporting all transient charges collected and paying over the tax due for the prior calendar month. Section 281-14 lets the Director adopt regulations to administer the tax.
Section 281-16 exempts room rentals paid by foreign government officers or employees exempt under treaty or federal law, rentals paid to hospitals, medical clinics, convalescent homes or homes for aged people, and rentals paid through an authorized county government voucher system. The article was amended in its entirety by Bill No. 2024-11 on 6-11-2024, replacing the version originally adopted by Res. No. 88-48 in 1988.
Violations & Fines
A hotel or broker that fails to pay the tax owes interest on the unpaid amount at 0.5% for each month or fraction of a month it remains unpaid (§ 281-15A). If the tax is not paid within one month after it is due, the hotel or broker also owes a penalty of 10% of the unpaid tax (§ 281-15B). Unpaid hotel rental tax becomes a lien against all the hotel's real and personal property, collectible the same way as delinquent property tax under the Tax-Property Article (§ 281-15C).
Frequently Asked Questions
Does Charles County's hotel tax apply to Airbnb and other short-term rentals?
What is the hotel rental tax rate in Charles County, Maryland?
When must a hotel or broker file and pay the tax?
What happens if the tax is paid late?
Is any lodging exempt from the Charles County hotel tax?
Sources & Official References
Other rules in Charles County
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