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

Under Texas Tax Code Chapter 156, rentals of a room or space in a hotel, motel, tourist home, or similar commercial lodging costing 15 dollars or more per day are subject to the 6 percent state hotel occupancy tax. Under Texas Tax Code Chapter 351, the City of Mansfield imposes a local HOT of 7 percent on the same transactions. Short-term rentals operated through Airbnb and Vrbo meet this definition when the stay is under 30 consecutive days. Airbnb and Vrbo collect the 6 percent state HOT on behalf of hosts and remit to the Texas Comptroller. Local HOT collection varies by platform and by whether Mansfield has a direct remittance agreement. Hosts generally remain responsible for ensuring the 7 percent local HOT is collected and remitted to the City of Mansfield Finance Department on a monthly or quarterly basis, along with reporting forms. In addition, operators may need a Texas sales tax permit, a Mansfield business registration, and must pay federal income tax on rental receipts. Failure to collect HOT exposes the owner to back tax, penalty, and interest assessments by the Comptroller and the city.