Killeen, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 7 percent of room consideration
- Threshold
- Applies at $2.00/night or more
- Reports due
- Monthly, by end of following month
- Exemptions
- Permanent residents (30+ days), diplomats, official travel
- Late penalty
- 5% plus 5% after 30 days, 12% interest
- Enforcement
- Director of finance; misdemeanor under Sec. 1-8
Summary
Killeen taxes every hotel, motel, tourist court, and short-term rental stay at 7 percent of the room charge whenever nightly cost reaches $2 or more. The director of finance collects and audits the tax. Permanent residents of 30 or more consecutive days, plus diplomats, and federal or state employees and military personnel on official travel, owe nothing under the ordinance.
(a)There is hereby levied a tax upon the occupant of any room or space furnished by any hotel where such cost of occupancy is at the rate of two dollars ($2.00) or more per day, such tax to be equal to seven (7) percent of the consideration paid by the occupant of such room, space or facility to such hotel, exclusive of other occupancy taxes imposed by other governmental agencies.(b)No tax shall be imposed hereunder upon a permanent resident.(c)No tax shall be imposed under this article upon diplomatic personnel who present a tax exemption card issued by the United States Department of State, federal or state employees traveling on business, or federal or state military personnel traveling on official military business. This exemption does not apply to institutions of higher learning or city officers and employees.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 38 Update 1).
Full Breakdown
Killeen's hotel occupancy tax is codified at Code of Ordinances ch. 27, art. IV. 00 or more per day; Section 27-71 defines 'hotel' broadly to include a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, or rooming house, but excludes hospitals, sanitariums, and nursing homes, sweeping in the city's large military-adjacent short-term rental market. The tax exempts permanent residents (30+ consecutive days), diplomatic personnel carrying a State Department exemption card, and federal or state employees or military personnel traveling on official business, though that exemption does not extend to colleges or city employees.
Under Section 27-73, whoever owns, operates, manages, or controls the hotel must collect the tax; Section 27-74 requires a monthly report to the director of finance, filed by the last day of the following month, itemizing consideration collected and attaching a copy of the operator's most recent quarterly report to the state comptroller. Section 27-75 gives the director of finance power to inspect books and records on 24 hours' written notice. Section 27-76 makes failure to collect, report, or remit the tax a misdemeanor punishable under Section 1-8, plus a 5 percent late penalty, another 5 percent after 30 days, and 12 percent annual interest starting 60 days after the due date.
Violations & Fines
Operators who fail to collect, report, or remit the tax, or who file a false report, commit a misdemeanor under Section 27-76, fined under the Section 1-8 general penalty (up to $500, or $2,000 for fire-safety, zoning, or health violations). Late tax draws a 5 percent penalty, a further 5 percent after 30 days, and 12 percent annual interest from 60 days past due; the fine never falls below $1.00.
Frequently Asked Questions
Does Killeen's hotel tax apply to Airbnb and short-term rentals?
Who is exempt from Killeen's hotel occupancy tax?
What happens if a hotel operator does not pay the tax on time?
Sources & Official References
Other rules in Killeen
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