Sacramento, CA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Combined tax rate
- 12% of rent charged
- Base rate
- 7% effective 8/1/1976 (§3.28.030)
- First add-on
- 3% effective 6/30/1978 (§3.28.040)
- Second add-on
- 2% effective 7/1/1994 (§3.28.050)
- Filing frequency
- Quarterly return, due end of following month
- Late penalty
- 10% + 10% + 0.5%/month interest
- Fraud penalty
- Additional 25% of tax
Summary
Sacramento charges a 12 percent transient occupancy tax on rent paid by anyone occupying a hotel, motel, or other lodging for 30 consecutive days or less. Operators collect the tax from guests, file quarterly returns with the assessor-collector, and remit it to the city under City Code Chapter 3.28.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of six percent of the rent charged by the operator. On and after August 1, 1976, said tax shall be in the amount of seven percent of such rent. Such tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city.
Full Breakdown
030 sets the base tax at seven percent of the rent charged by the operator, effective August 1, 1976 (originally six percent). 040 layers on an additional three percent, effective June 30, 1978, with a portion funding the Sacramento Convention and Visitors Bureau. 050 adds a further two percent, effective July 1, 1994 (phased up from one percent in 1990), with those proceeds going to the general fund. Combined, the current rate on rent is 12 percent. 020: a broad definition covering hotels, motels, inns, tourist homes, rooming houses, apartment houses, mobilehomes or house trailers at a fixed location, and similar structures rented to 'transients,' meaning anyone occupying space for 30 consecutive days or less.
That 30-day threshold means most short-term rental stays are subject to the tax the same as a hotel room. 070, the operator must collect the tax at the same time as rent, state it separately from the rent on the guest's receipt, and may not advertise that the tax will be absorbed into the room rate. 090 requires a quarterly return to the assessor-collector, filed and paid by the last day of the month following each calendar quarter, with all collected tax held in trust for the city until remitted. 180 directs the assessor-collector to deposit proceeds into a dedicated transient occupancy tax revenue account, subject to annual audit.
Violations & Fines
Under § 3.28.110, a late remittance draws a 10 percent penalty, a second 10 percent penalty if still unpaid 30 days after the original due date, and interest at one-half of one percent per month on the unpaid tax. A remittance the assessor-collector finds fraudulent draws an additional 25 percent penalty. Section 3.28.170 makes any violation, including an operator's failure to register, file a return, or furnish required data, or filing a false or fraudulent return, an infraction under Government Code § 36900(b).
Frequently Asked Questions
What is Sacramento's transient occupancy tax rate?
Does the tax apply to short-term rentals, not just hotels?
Who is responsible for paying the tax, the guest or the operator?
What happens if a hotel operator files or pays late?
Is failing to register or report the tax a crime?
Sources & Official References
Other rules in Sacramento
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Transient Occupancy Tax in Nearby Cities
How other cities in Sacramento County handle transient occupancy tax.