Katy, TX Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- City HOT Rate
- 7%
- State HOT Rate
- 6%
- Reporting Frequency
- Monthly
- Permit Fee
- $300 new application
- Inspection Fee
- $50
Summary
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.
Sec. 156.051. TAX IMPOSED. (a) A tax is imposed 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 or space in a hotel costing $15 or more each day.(b) The price of a room in a hotel does not include the cost of food served by the hotel and the cost of personal services performed by the hotel for the person except for those services related to cleaning and readying the room for use or possession.
Full Breakdown
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.
Violations & Fines
Failure to register, collect, or remit hotel occupancy tax, or filing late or inaccurate monthly reports, may trigger penalties, interest, and permit revocation.
Frequently Asked Questions
How much hotel occupancy tax do Katy STR hosts collect?
How often do I report Katy hotel occupancy tax?
Sources & Official References
Other rules in Katy
How Katy compares: Cities with the Highest Short-Term Rental Taxes·Texas rules heatmap·Compare Katy to another location·View the Texas short-term rentals overview
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Taxes & Fees in Nearby Cities
How other cities in Fort Bend County handle taxes & fees.