Massachusetts Statewide Rule
Massachusetts Short-Term Rental Room Occupancy Excise Tax
Key Facts
- State Excise Rate
- 5.7% statewide
- Statute
- G.L. c. 64G
- Threshold
- Rentals 31 days or less
- Exemption
- Under 14 days yearly
Summary
Massachusetts imposes a statewide 5.7% room occupancy excise on short-term rentals, plus optional local and community impact fees collected uniformly through DOR.
Section 3. An excise shall be imposed upon the transfer of occupancy of a room or unit in a bed and breakfast establishment, hotel, lodging house, short-term rental or motel by an operator at the rate of 5 per cent of the total amount of rent for each such occupancy. An excise shall not be imposed if the total amount of rent is less than $15 per day or its equivalent. The operator shall pay the excise to the commissioner at the time provided for filing the return required under section 16 of chapter 62C.
Full Breakdown
Chapter 337 of the Acts of 2018 amended G.L. c. 64G to extend the room occupancy excise to short-term rentals of 31 days or less. Operators must register with the Massachusetts Department of Revenue, collect the 5.7% state excise, and remit any local option excise (up to 6%, or 6.5% in Boston). A 2.75% Cape Cod and Islands Water Protection Fund surcharge applies in those communities. Hosts renting fewer than 14 days annually are exempt. Registration with DOR's MassTaxConnect is mandatory before listing.
Violations & Penalties
Failure to register and remit excise taxes results in DOR penalties, interest, and possible loss of registration certificate.
Frequently Asked Questions
Who collects the short-term rental tax?
Are there exemptions?
Sources
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.