Houston, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- City rate
- 7% of room price
- Texas state rate
- 6% under Tax Code Ch. 156
- Combined burden
- 13% effective
- Filing frequency
- Monthly to city
- Permanent guest exemption
- 30 consecutive days
Summary
Houston Code Chapter 44 imposes a 7% city Hotel Occupancy Tax on rooms costing $2 or more per night, stacked on the 6% Texas state HOT under Tax Code Chapter 156. Combined burden is 13%, with revenue funding the convention center and Visit Houston.
Sec. 351.002. TAX AUTHORIZED. (a) A municipality by ordinance may impose a tax on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room that is in a hotel, costs $2 or more each day, and is ordinarily used for sleeping.(b) The price of a room in a hotel does not include the cost of food served by the hotel and the cost of personal services performed by the hotel for the person except for those services related to cleaning and readying the room for use or possession.(c) The tax does not apply to a person who is a permanent resident under Section 156.101 of this code. Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1991, 72nd Leg.
Full Breakdown
Houston Code Chapter 44 levies a 7% Hotel Occupancy Tax on the price of any room rented for less than 30 consecutive days where the daily rate is $2 or more. The Texas Comptroller separately collects a 6% state HOT under Tax Code Chapter 156, producing a combined 13% effective rate before tourism PID fees. Hotels, motels, bed-and-breakfasts, and short-term rentals are all liable. Operators must register with the Houston Controller's Office, file monthly returns by the last day of the following month, and remit collected tax. Permanent residents staying 30 or more days are exempt. Revenue funds the George R. Brown Convention Center, Visit Houston, arts, and historic preservation under Tax Code Chapter 351.
Violations & Fines
Late returns trigger a 5% penalty plus interest under Houston Code Chapter 44, rising to 10% after 30 days. Willful failure to remit is a Class C misdemeanor, and the city may place liens on unpaid accounts and revoke permits.
Frequently Asked Questions
What is the total hotel tax I pay in Houston?
Are short-term rentals like Airbnb subject to Houston HOT?
Sources & Official References
Other rules in Houston
Texas rules heatmap·Compare Houston to another location·View the Texas hotels & lodging overview
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