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Allen, TX Short-Term Rentals: Taxes & Fees (2026)

Light Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified April 2026

Key Facts

Allen HOT
7 percent
Texas HOT
6 percent
Combined
13 percent
State Filing
Quarterly via Comptroller
Authority
Tax Code Ch. 351

Summary

Allen HOT is 7 percent; combined with Texas state HOT of 6 percent, total tax on nightly rate is 13 percent. Airbnb and Vrbo auto-collect state portion but hosts must verify city HOT remittance.

Sec. 156.051. TAX IMPOSED. (a) A tax is imposed on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room or space in a hotel costing $15 or more each day.(b) The price of a room in a hotel does not include 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. Acts 1981, 67th Leg., p. 1686, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 2003, 78th Leg., ch. 209, Sec. 28, eff. Oct. 1, 2003.

Sec. 156.052. RATE OF TAX. The rate of the tax imposed by this chapter is six percent of the price pa

Source: Texas Tax Code Ch. 351 HOTView official code

Full Breakdown

City HOT is authorized under Texas Tax Code Ch. 351. Allen requires monthly or quarterly returns depending on revenue volume. Registration fee typically ranges 100-250 dollars annually. State HOT filed quarterly with TX Comptroller. Platforms vary in whether they collect Allen city HOT directly; hosts must confirm and self-remit any gap.

Violations & Fines

Late HOT: 15 percent penalty plus interest at state rate. Fraud or willful non-filing can result in criminal misdemeanor charges under Tax Code Ch. 351.

Sources & Official References

Other rules in Allen

All Allen rules

How Allen compares: Cities with the Highest Short-Term Rental Taxes·Texas rules heatmap·Compare Allen to another location·View the Texas short-term rentals overview

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