Garland, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 7% of taxable room price
- Applies to
- Hotels, motels, and short-term rentals
- Filing deadline
- 10 days after each quarter's end
- Exemption
- Stays under $2/day; permanent residents 30+ days
- Maximum fine
- $500 per offense under § 40.14
- Late penalty
- 15% plus 10% annual interest
Summary
Garland levies a 7 percent hotel occupancy tax on the price of any room rented in the City, collected by the hotel operator under Code of Ordinances § 40.11. The tax reaches short-term rentals too, since § 40.10's definitions fold short-term rentals into the "hotel" category, but exempts stays under $2 a day, meeting space, and permanent residents.
(A) A tax upon the cost of or consideration paid by a person who, under a lease, concession, permit, right of access, license, contract, or agreement, has the use or possession or the right to the use or possession of a room that is in a hotel is hereby levied at the rate of seven percent of the total price to include all goods and services provided by the hotel which are not ordinarily subject to sales tax. (B) The following are exceptions to the tax: (1) There is no tax on the cost of or consideration paid for occupancy of a hotel sleeping space, room, or facility priced at less than $2.00 per day. (2) The cost of or consideration paid for a hotel space, room, or facility not ordinarily used for sleeping, such as a conference space or a meeting room, is not subject to this tax. (3) The cost of or consideration paid for a sleeping space, room, or facility occupied by a permanent resident is not subject to this tax.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4862189; v40 updated 2026-05-19).
Full Breakdown
11(A). 10 sweep broadly: "hotel" covers not just traditional hotels and motels but tourist homes, lodging houses, dormitories that rent bed space, apartments not occupied by permanent residents, and short-term rentals, so an operator renting a house or room through a booking platform owes the same 7 percent tax as a downtown hotel. 00 per day, meeting or conference space not used for sleeping, stays by a permanent resident who has paid for the same room for 30 consecutive days without an interruption in payment, certain exempt persons under Tex.
103(a) and (d), and state governmental entities, which must still pay but can seek a refund. 12, and must keep records open to City inspection. 15.
Violations & Fines
Failing to collect or remit the 7 percent hotel occupancy tax, filing a false report, or missing the quarterly filing deadline is an offense under § 40.14 punishable by a fine of up to $500 per day. Late payment also draws a 15 percent penalty plus 10 percent annual interest, and the City Attorney can sue to collect or enjoin the hotel from operating until the tax is paid.
Frequently Asked Questions
What is Garland's hotel occupancy tax rate?
Does the hotel occupancy tax apply to Airbnb-style short-term rentals in Garland?
Who is exempt from Garland's hotel tax?
Sources & Official References
Other rules in Garland
Texas rules heatmap·Compare Garland to another location·View the Texas hotels & lodging overview
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Transient Occupancy Tax in Nearby Cities
How other cities in Dallas County handle transient occupancy tax.