Madison, WI Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Room tax rate
- 9% (MGO 4.21)
- WI sales tax
- 5.5%
- Combined
- About 14.5%
- Tourism share
- 70%+ required
Summary
Madison imposes a 9% room tax on hotel and short-term lodging stays under MGO Ch. 4.21, on top of Wisconsin's 5.5% sales tax, for an effective tax rate of about 14.5% on hotel rooms.
66.0615 Room tax; forfeitures. 66.0615(1) (1) In this section: 66.0615(1)(a) (a) “Commission” means an entity created by one municipality or by 2 or more municipalities in a zone, to coordinate tourism promotion and tourism development for the zone. 66.0615(1)(am) (am) “District” has the meaning given in s. 229.41 (4m) . 66.0615(1)(b) (b) “Hotel” has the meaning given in s. 77.52 (2) (a) 1. 66.0615(1)(bt) (bt) “Marketplace provider” has the meaning given in s. 77.51 (7i) , to the extent that the marketplace provider facilitates the sale or furnishing of rooms, lodging, or other accommodations to transients under sub. (1m) (a) . 66.0615(1)(bu) (bu) “Marketplace seller” has the meaning given in s. 77.51 (7j) . 66.0615(1)(c) (c) “Motel” has the meaning given in s.
Full Breakdown
Madison General Ordinance 4.21 imposes a 9% room tax on lodging stays under 30 days at hotels, motels, B&Bs, and short-term rentals operating under MGO 28.131. Wis. Stat. 66.0615 caps municipal room tax rates and requires that at least 70% of revenue support tourism promotion through the Greater Madison Convention & Visitors Bureau and the Monona Terrace convention center. The remaining share funds general city services. Combined with the 5.5% Wisconsin state sales tax (5% state plus 0.5% Dane County), guests pay approximately 14.5% in taxes on hotel rooms. UW-Madison football and Capitol-area tourism generate significant revenue.
Violations & Fines
Hotels and STR operators that fail to collect or remit the room tax face back taxes, monthly interest, penalties up to 25%, and potential lodging-license revocation by the city.
Frequently Asked Questions
Does the room tax apply to Airbnb?
What about long-term hotel stays?
Sources & Official References
Other rules in Madison
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Transient Occupancy Tax in Nearby Cities
How other cities in Dane County handle transient occupancy tax.