Katy imposes a 7% city hotel occupancy tax on short-term rentals, in addition to the 6% state HOT, with monthly reporting required from operators.
The City Council adopted an ordinance applying the local hotel occupancy tax to short-term rentals. Operators must register with both the Texas Comptroller and the City of Katy, then file monthly hotel occupancy tax reports using the city's official form. The combined tax burden includes 6% to the state plus an additional 7% to the city. Permit applications also carry a $300 new application fee, $200 renewal fee, and $50 inspection fee that operators must pay before listing.
Failure to register, collect, or remit hotel occupancy tax, or filing late or inaccurate monthly reports, may trigger penalties, interest, and permit revocation.
See how other cities in Fort Bend County handle taxes & fees.
See how Katy's taxes & fees rules stack up against other locations.
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