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Santa Clara, CA Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Current TOT rate
13.5% of rent (since Jan. 1, 2025)
Enforcing office
Director of Finance
Transient threshold
30 consecutive days or less
Filing frequency
Quarterly return and remittance
Willful noncompliance penalty
25% of unpaid tax
Registration deadline
Within 30 days of starting business

Summary

Santa Clara taxes hotel and short-term lodging stays at 13.5% of the rent charged, effective January 1, 2025, under Chapter 3.25 of the City Code. "Hotel" is defined broadly to cover motels, apartment houses, dormitories, mobile homes and house trailers rented for lodging, so short-term rental stays under 30 days fall under the same tax as traditional hotels.

(a) For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax as imposed from time to time by City Council resolution. Said tax shall be a percentage of the rent charged by the operator to the occupant. (b) On and as of January 1, 2025, and continuing thereafter until further change by City Council resolution, the amount of the tax imposed is thirteen and one-half percent (13.5%) of the rent charged by the operator.

Full Breakdown

050). 020(g)). 080). 090). 040). No exemption is granted unless claimed in writing, under penalty of perjury, at the time rent is collected.

Violations & Fines

An operator who fails to remit on time owes delinquency interest under SCCC § 3.25.110, calculated at the T-Bill rate plus 3% prorated monthly. If the Director of Finance finds willful noncompliance or repeated delinquency, a 25% penalty is added to the unpaid tax (SCCC § 3.25.100(b)). If an operator refuses to collect or report the tax, the Director may audit the operator's records at the operator's expense and assess tax, interest and penalties by mailed notice; the operator has 30 days to request a hearing before the assessment becomes final and payable (SCCC § 3.25.120).

Frequently Asked Questions

What is Santa Clara's hotel tax rate?
13.5% of the rent charged by the operator, effective January 1, 2025, under SCCC § 3.25.030(b). The rate is set by City Council resolution and has been raised twice recently, most recently by Ordinance No. 2073 in November 2024.
Does the tax apply to short-term rentals, not just hotels?
Yes. SCCC § 3.25.020(b) defines "hotel" to include any structure or portion of a structure occupied by transients for dwelling, lodging or sleeping purposes, which covers short-term rental units rented for 30 days or less, not just traditional hotels and motels.
Who has to collect and remit the tax?
The hotel or rental operator collects the tax from the guest at the time rent is paid, holds it in trust for the City, and remits it to the Director of Finance with a quarterly return, per SCCC §§ 3.25.050 and 3.25.090.

Sources & Official References

Other rules in Santa Clara

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Transient Occupancy Tax in Nearby Cities

How other cities in Santa Clara County handle transient occupancy tax.

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