Kyle, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 7% of room consideration (§ 44-84(b))
- Threshold
- Applies to rooms $2.00 or more per day
- Reports due
- Quarterly, last day of month after quarter ends
- Late penalty
- 5% of tax plus 1% monthly interest
- Criminal penalty
- Up to $500 fine per offense (§ 44-96)
- Record retention
- 5 years, organized by calendar year
- Geographic reach
- Applies inside Kyle and its ETJ
Summary
In the City of Kyle, every hotel, motel, bed and breakfast or short-term rental charging $2 or more a day for a sleeping room must collect a 7% hotel occupancy tax under City Code § 44-84, on top of the state's separate hotel tax. The tax reaches properties inside Kyle and in its extraterritorial jurisdiction, and operators file quarterly reports with the city secretary.
(a) There is hereby levied a tax upon the cost of occupancy of sleeping rooms in hotels, located within the city or within the city's extraterritorial jurisdiction (ETJ), for which the occupancy cost of the room is $2.00 or more per day not including 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. (b) Such occupancy tax shall be seven percent of the consideration paid for such sleeping room. The tax shall not apply to a person who is a permanent resident of the sleeping room or who is otherwise exempt from paying the tax pursuant to V.T.C.A., Tax Code §§ 156.001 et seq. and 351.001 et seq.
Full Breakdown
City Code § 44-83 defines a taxable 'hotel' broadly: a hotel, motel, tourist home, tourist house, tourist court, lodginghouse, inn, roominghouse, or bed and breakfast, but not a hospital, sanitarium, nursing home or dormitory. That sweeps in short-term rentals operating as lodginghouses. 'Occupancy' means use of a sleeping room for less than 30 consecutive calendar days; longer stays are treated as permanent residence and exempt under § 44-84(b). Every person owning, operating, managing or controlling a hotel in Kyle or its ETJ must collect the 7% tax (§ 44-85) and keep records for five years by calendar year showing consideration paid and tax due (§ 44-86(2)).
A quarterly report to the city secretary and payment of the tax collected are both due on or before the last day of the month following each calendar quarter (§§ 44-86(3), 44-87). Filing or paying late adds a 5% penalty (§ 44-88), and unpaid tax draws 1% interest per calendar month starting 60 days after the quarter's due date (§ 44-89). If the city attorney sues to collect, the delinquent hotel owes the city's attorney's fees, audit costs and a 15% penalty on the amount owed (§ 44-90), and the city manager's referral to the city attorney tacks on another 15% before suit is even filed (§ 44-91). The city, or the state comptroller at the city's request, may audit any hotel's records (§ 44-92).
Violations & Fines
Failing to collect, report or pay the tax, or failing to maintain records, is a misdemeanor under § 44-96, punishable by a fine of up to $500 for each offense; a separate offense arises for each failure and each day it continues. The city attorney may also sue to enjoin a noncompliant hotel from operating until the tax is paid or the report filed, adding attorney's fees, audit costs and a 15% penalty (§§ 44-90, 44-91).
Frequently Asked Questions
Does Kyle's hotel occupancy tax apply to Airbnbs and other short-term rentals?
What is Kyle's hotel occupancy tax rate?
When are hotel tax reports due in Kyle?
What happens if a Kyle hotel doesn't pay the occupancy tax?
Sources & Official References
Other rules in Kyle
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