Little Elm, TX Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Local Tax Rate
- 7%
- State Tax Rate
- 6% (TX Tax Code Ch. 156)
- Combined Rate
- 13%
- Late Penalty
- 5% + 10% annual interest
- Registration Fee
- $200/year
Summary
Little Elm imposes a 7% local hotel occupancy tax on all short-term rentals, collected from guests and remitted to the town. The state of Texas adds a 6% hotel occupancy tax under TX Tax Code Chapter 156, bringing the combined rate to 13%. Monthly or quarterly filing is required depending on tax volume. Late payment triggers a 5% penalty plus 10% annual interest after 60 days.
Sec. 156.001. DEFINITIONS. (a) In this chapter, "hotel" means a building in which members of the public obtain sleeping accommodations for consideration. ... (b) For purposes of the imposition of a hotel occupancy tax under this chapter, Chapter 351 or 352, or other law, "hotel" includes a short-term rental. In this subsection, "short-term rental" means the rental of all or part of a residential property to a person who is not a permanent resident under Section 156.101. ... 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.
Full Breakdown
Short-term rental operators in Little Elm must collect and remit the town's 7% hotel occupancy tax under Article III of the municipal code, in addition to the 6% state hotel occupancy tax under TX Tax Code Chapter 156. The combined rate is 13% of the rental charge. Filing is monthly for operators owing more than $500 per month or $1,500 per quarter, with reports and payments due by the 20th of the following month. Quarterly filers follow a fiscal calendar: Q1 (October-December) due January 31, Q2 (January-March) due April 30, Q3 (April-June) due July 31, Q4 (July-September) due October 31.
com, by mail, or in person. Failure to file and pay incurs a 5% penalty fee, and beginning on the 61st day after the due date, delinquent taxes draw interest at 10% per annum. Delinquency in tax filing or payment is grounds for suspension or revocation of STR registration. TX Tax Code Chapter 351 authorizes Texas municipalities to levy local hotel occupancy taxes up to 7%. gov or (214) 618-2040.
Violations & Fines
5% penalty on late tax payments. 10% annual interest after 60 days. Delinquency may result in STR registration suspension or revocation.
Frequently Asked Questions
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Sources & Official References
Other rules in Little Elm
How Little Elm compares: Cities with the Highest Short-Term Rental Taxes·Texas rules heatmap·Compare Little Elm to another location·View the Texas short-term rentals overview
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