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

The Town of Herndon imposes a Transient Occupancy Tax (TOT) at a rate of 5% on the total rental amount for stays of fewer than 30 consecutive days, authorized under Virginia Code 58.1-3819 et seq. In addition, Virginia state sales tax of 5.3% applies to the rental, and there may be overlapping Fairfax County transient occupancy tax and regional transportation-related taxes depending on jurisdictional boundaries (Herndon is an incorporated town within Fairfax County, so both town and county taxes may apply). Operators must register with the Virginia Department of Taxation for sales tax collection and with the Herndon Commissioner of the Revenue for TOT. Monthly or quarterly returns are filed depending on volume. Airbnb and Vrbo have tax collection agreements with the Virginia Department of Taxation that cover state sales tax automatically; most local TOT is also collected by these platforms in participating jurisdictions, but operators should confirm which taxes are being collected on their behalf. Where the platform does not collect a particular tax, the operator must collect and remit it directly. Late payment triggers penalties and interest under Virginia tax code. The Town also requires a business license (BPOL) based on gross receipts. Keeping clear records of nightly rates, cleaning fees, and taxable amounts is essential, as Virginia considers mandatory cleaning fees part of the taxable rental amount.