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

Texas Tax Code Chapter 156 imposes a 6 percent state hotel occupancy tax on the price paid for any room or space in a hotel costing $15 or more per day, which includes short-term residential rentals of less than 30 consecutive days. Chapter 351 authorizes Texas municipalities to adopt a local hotel occupancy tax up to 7 percent, and Chapter 352 allows counties including Bexar to impose an additional county HOT. Operators must register with the Texas Comptroller and file returns monthly or quarterly depending on tax liability. Airbnb and Vrbo collect the 6 percent state HOT for Texas hosts automatically in most cases, but operators should verify on their host dashboard which taxes the platform is collecting and which remain the host responsibility. Direct bookings through personal websites or other platforms require the host to collect and remit all applicable taxes. Federal income tax still applies to rental revenue. If the property is rented 14 days or fewer per year, the Augusta Rule (IRC Section 280A(g)) allows the rental income to be excluded from federal taxable income. Record keeping of each booking, nightly rate, occupancy tax collected, cleaning fees, and platform commissions is essential.