Rockville, MD Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 2% of room rental
- Effective date
- October 1, 2008
- Hotel threshold
- 10+ sleeping accommodations at once
- Remittance
- Monthly, by last day of month
- Revenue share out
- 3.5% to County Conference & Visitors Bureau
Summary
Rockville imposes a 2% tax on hotel room rentals, collected by the hotel and remitted monthly to the City.
There is levied and imposed on each and every transient a tax at the rate of two (2) percent of the total amount paid for room rental to any hotel, by or for a transient, for sleeping accommodations.(b)Every hotel receiving any payment for room rental with respect to which tax is levied shall collect the amount of tax imposed by this Article at the time payment for the room rental is made. The taxes required to be collected by this Article shall be deemed to be held in trust by the hotel required to collect the tax until remitted as required by this Article.(c)Whenever any hotel required to collect and pay to the City a tax under this Article shall cease doing business or otherwise dispose of its business, any tax payable under this Article to the City shall become immediately due and payable and the hotel shall immediately make a report and pay the tax due. (Ord. No. 11-08, § 1, 7-14-08)
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 17 Update 1).
Full Breakdown
City Code § 22-81(a) levies a 2% tax on every transient's room rental charge at a Rockville hotel, effective since October 1, 2008. The hotel collects it at time of payment and holds it in trust for the City, filing a report and remittance by the last day of each month (§ 22-82). Coverage turns on § 22-80's definition of "hotel": a lodging place "offering sleeping accommodations for ten (10) or more persons at any one (1) time." A single-unit short-term rental sleeping fewer than ten does not meet that threshold and falls outside this tax; a larger STR or bed-and-breakfast that does would owe it.
Violations & Fines
A hotel that fails to collect or remit the tax on time faces 1% monthly interest plus a 5% monthly penalty (capped at 25% of the tax) under § 22-84, and each failure is a separate municipal infraction.
Frequently Asked Questions
What is Rockville's hotel occupancy tax rate?
Does the hotel tax apply to a short-term rental like an Airbnb?
Sources & Official References
Other rules in Rockville
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Transient Occupancy Tax in Nearby Cities
How other cities in Montgomery County handle transient occupancy tax.