Fairfax, VA Short-Term Rentals: Taxes & Fees (2026)

The City of Fairfax imposes a Transient Occupancy Tax (TOT) on the rental of rooms, lodgings, and accommodations rented for fewer than 30 consecutive days. This tax is authorized by Virginia Code Section 58.1-3819 et seq. and administered locally by the City Commissioner of the Revenue and Treasurer. The current Fairfax City TOT rate is 4 percent of the gross room rental charges.

The TOT applies in addition to Virginia state and local sales tax. In Fairfax City, the combined sales tax rate on tangible goods is 6 percent (5.3 percent state plus 0.7 percent regional Northern Virginia transportation tax). Lodging itself is subject to the state sales tax in Virginia, so the all-in tax burden on a short-term rental can approach 10 percent when TOT and sales tax are both applied. Some platforms also collect additional fees not governed by these tax laws.

Operators must register with the Commissioner of the Revenue for TOT collection, file monthly or quarterly returns depending on volume, and remit collected taxes by the filing deadline. Returns are generally due by the 20th of the month following the taxable period. Failure to file or pay on time results in a penalty (typically 10 percent of the tax due or $10, whichever is greater) plus interest. Willful failure to collect or remit TOT is a Class 1 misdemeanor under Virginia Code Section 58.1-3818.

Platforms such as Airbnb have voluntary collection agreements with some Virginia localities, under which the platform collects and remits local TOT directly. Operators should verify whether their platform remits Fairfax City TOT on their behalf. If the platform does not remit, the operator remains fully responsible. Virginia Department of Taxation handles the state sales tax component; most major platforms auto-collect state sales tax on Virginia bookings.

Operators should keep detailed records of all bookings, nightly rates, cleaning fees, and tax collected, as the Commissioner of the Revenue may audit STR operations. Cleaning fees and most mandatory fees are generally subject to TOT; refundable damage deposits typically are not.