Bethlehem, PA Short-Term Rentals: Taxes & Fees (2026)

Bethlehem straddles two counties, so the county hotel tax depends on the property's physical location. (1) Pennsylvania State Hotel Occupancy Tax: 72 P.S. §7210 (Article II of the Tax Reform Code of 1971) imposes a 6% tax on the rental of rooms, apartments, and houses for periods less than 30 consecutive days, and the PA Department of Revenue has clarified that the tax applies to rentals 'arranged through online or third-party brokers' such as Airbnb and VRBO. (2) County Hotel Room Tax: Both Lehigh County (south of the Lehigh River) and Northampton County (north of the river) levy a hotel room rental excise tax. Both counties currently impose a 4% rate, administered by the Lehigh County Fiscal Office and the Northampton County Department of Fiscal Affairs respectively. Revenue funds Discover Lehigh Valley (the regional tourism promotion agency) and related county tourism initiatives. Operators must register with the applicable county and file monthly returns; stays under 30 days at any 'hotel' (which includes B&Bs and STR dwellings) are taxable. (3) No separate Bethlehem municipal STR tax - the city collects revenue through the Business Privilege License fee and the Business Privilege & Mercantile Tax instead. Airbnb has a state-level voluntary collection agreement that automatically remits the 6% PA state hotel occupancy tax, but the county 4% tax is generally the operator's responsibility unless the platform has a specific county agreement in place. Stays of 30 consecutive days or more by the same guest are EXEMPT from both taxes.