Denton County, TX Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- State Hotel Tax
- 6% of rental price
- County HOT
- Up to 7% under Ch. 352
- Registration
- TX Comptroller required
- Filing
- Quarterly or monthly
- County Fees
- None -- no permit required
Summary
Short-term rental operators in unincorporated Denton County must collect and remit state hotel occupancy tax (6%) and any adopted county hotel occupancy tax under Texas Tax Code Chapter 352. No county STR licensing fees apply, but tax compliance is mandatory.
Sec. 351.002. TAX AUTHORIZED. (a) A municipality by ordinance may impose a tax 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 that is in a hotel, costs $2 or more each day, and is ordinarily used for sleeping. (c) The tax does not apply to a person who is a permanent resident under Section 156.101 of this code. Sec. 351.003. TAX RATES. (a) Except as provided by this section, the tax authorized by this chapter may be imposed at any rate not to exceed seven percent of the price paid for a room in a hotel.
Full Breakdown
STR operators in unincorporated Denton County are subject to the Texas state hotel occupancy tax of 6% under Texas Tax Code Chapter 351. Counties may also levy a hotel occupancy tax under Texas Tax Code Chapter 352, up to 7% in most cases, with proceeds used for tourism promotion, convention facilities, and related purposes. Denton County has adopted a county hotel occupancy tax. Operators must register with the Texas Comptroller and file returns quarterly (or monthly if collecting over $500 per quarter). Major STR platforms including Airbnb collect and remit state and some local taxes automatically through voluntary collection agreements with the Comptroller, but operators should verify what taxes the platform handles versus what they must remit directly. There are no county-specific STR licensing fees, application fees, or annual renewal fees because the county does not require STR permits. Property tax obligations continue regardless of rental use.
Violations & Fines
Failure to collect state hotel tax: 5% penalty plus 10% per month interest under TX Tax Code 351.005. Criminal penalties for willful failure to collect or remit. County HOT violations carry similar penalties.
Frequently Asked Questions
What taxes do I owe on my STR in unincorporated Denton County?
Does Airbnb collect the taxes for me?
Sources & Official References
Other rules in Denton County
How Denton County compares: Cities with the Highest Short-Term Rental Taxes·Texas rules heatmap·Compare Denton County to another location·View the Texas short-term rentals overview
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