Leander, TX Short-Term Rentals: Taxes & Fees (2026)

Texas taxes short-term lodging at two levels, and both apply to Leander vacation rentals. The State of Texas imposes a 6% hotel occupancy tax under Tax Code Chapter 156 on rooms costing $15 or more per day; the Texas Comptroller confirms this tax applies not only to hotels and motels but also to bed and breakfasts, condominiums, apartments, and houses, so an Airbnb or VRBO-type house rental is covered. On top of that, the City of Leander imposes a 7% municipal hotel occupancy tax. The city's Hotel Occupancy Tax report form states that 'Chapter 11, Article 11.04 of the Code of Ordinances of the City of Leander' levies an occupancy tax of seven percent (7%) on the total cost of occupancy of any sleeping room or space furnished by any hotel where the cost of occupancy is two dollars ($2.00) or more per day. The combined rate a guest pays is therefore 13% (6% state + 7% city). Texas Tax Code Chapter 351 caps a general municipality's hotel tax at 7%, so Leander sits at the statutory maximum. The city tax is filed quarterly with the Finance Director, due the last day of the first month after each quarter, with the state Comptroller return attached. Guests who stay 30 or more consecutive days qualify as permanent residents and are exempt (Texas Tax Code Section 156.101); the city form provides a 'Permanent Resident Exemptions' line. Platforms such as Airbnb may collect the state portion, but operators remain responsible for remitting the city's 7% directly to Leander.