Carrollton, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 7% of room charge
- Taxable threshold
- Rooms $2.00+ per day
- Covers
- Hotels, STRs, bed & breakfasts
- Filing
- Quarterly report to Tax Assessor
- Late penalty
- 5% + 5% after 30 days
- Interest
- 6% per year after 60 days
- City retains
- 5% of tax for collection cost
Summary
Carrollton taxes every hotel, short-term rental and bed-and-breakfast stay at 7 percent of the room charge for rooms renting at $2.00 or more per day, layered on top of state and county hotel taxes. City Code § 38.31 folds Airbnb-style short-term rentals into the same levy as traditional hotels, and operators must collect, report and remit the tax to the City Tax Assessor and Collector every quarter.
Under the provisions of V.T.C.A., Tex. Tax Code, Chapter 351, there is hereby levied a tax upon the cost of occupancy of any sleeping room furnished by any hotel, short-term rental, or bed and breakfast where the cost of occupancy is at the rate of $2.00 or more per day, the tax to be equal to seven percent of the consideration paid by the occupant for the room to that hotel, exclusive of other occupancy taxes imposed by other governmental agencies.
Full Breakdown
Chapter 38, Subchapter III of Carrollton's General Code defines who owes the tax before setting the rate. 31 tax base. 00 or more per day, charged in addition to any occupancy tax imposed by the state or county. 33 requires a report to the City Tax Assessor and Collector on the last day of the month following each calendar quarter, showing the consideration collected on every room occupancy and the tax withheld, with payment due when the report is filed. 35 sends the proceeds to the purposes authorized by section 3(c) of Tex.
Rev. Civ. Stat. art. 1, but lets the city keep five percent of what it collects to cover administrative cost. 36 gives the Tax Assessor and Collector power to write collection rules and, on reasonable notice, to inspect an operator's books to verify a filed report.
Violations & Fines
Failing to collect the tax, failing to file the quarterly report, failing to remit by the filing deadline, or filing a false report is a misdemeanor under § 38.34, on top of the general penalty in § 37.99. An operator who misses the deadline forfeits five percent of the tax due, then another five percent once the delinquency passes 30 days, though the penalty is never less than $1.00, plus six percent annual interest starting 60 days after the tax was due.
Frequently Asked Questions
Does Carrollton's hotel tax apply to Airbnb and VRBO rentals?
When are Carrollton hotel occupancy tax payments due?
What happens if an operator doesn't pay the Carrollton hotel tax on time?
Sources & Official References
Other rules in Carrollton
Texas rules heatmap·Compare Carrollton to another location·View the Texas hotels & lodging overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Transient Occupancy Tax in Nearby Cities
How other cities in Dallas County handle transient occupancy tax.