Newport Beach, CA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Tax rate
- 9% of rent charged
- Registration deadline
- Within 30 days of opening
- Return filing
- Quarterly, due end of following month
- Initial late penalty
- 10% of tax, non-waivable
- Second late penalty
- Additional 10% after 30 days
- Interest rate
- 1.5% per month unpaid
- Refund claim window
- 1 year from payment date
Summary
Newport Beach charges a 9% transient occupancy tax on every stay of 30 days or less in a hotel, motel, vacation rental or similar unit under Municipal Code Sec. 3.16.030. Operators collect the tax with the rent, register with the Administrative Services Director, and file quarterly returns and remittances.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of 9% of the rent charged by the operator. The tax constitutes a debt owed by the transient to the City, which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment.
Full Breakdown
The Uniform Transient Occupancy Tax Ordinance defines a "hotel" broadly to include any inn, motel, bed and breakfast, single-room occupancy hotel, rental unit, time-share project, or recreational vehicle space rented for dwelling or sleeping purposes (Sec. 020). Every operator must collect the 9% tax at the same time rent is collected and state it separately on the guest's receipt, unless the room is part of an approved "special package" filed with the Administrative Services Director under Sec. 050. Within 30 days of commencing business, an operator must register the hotel and post a transient occupancy registration certificate on the premises (Sec.
060); operators who instead hold a short-term lodging permit under Sec. 020 are exempt from this separate registration. Returns reporting total rents and tax collected are due by the last day of the month following each calendar quarter, and all collected tax is held in trust for the City until remitted (Sec. 070). Limited exemptions apply, including government officials acting in an official capacity, qualifying long-term rental agreements of 31 days or more entered into before occupancy begins, and complimentary rooms provided without charge (Sec.
040). Records substantiating the tax collected, including daily occupancy summaries and exemption claims, must be kept for at least four years and are subject to City audit on 24 hours' written notice (Sec. 110). A transient may seek a refund of an overpaid or erroneously collected tax by filing a written claim within one year of payment (Sec. 120).
Violations & Fines
An operator who fails to collect and remit the tax on time owes a nonwaivable 10% initial penalty, plus another 10% second penalty if still unpaid 30 days after the delinquency date, plus interest of 1.5% per month on the unpaid tax (Sec. 3.16.080). Nonpayment traced to fraud adds a 25% penalty (Sec. 3.16.085). An operator may appeal a determination in writing to the Administrative Services Director within 10 days of notice, with a hearing before an appointed hearing officer (Sec. 3.16.090); unappealed determinations become final and immediately due.
Frequently Asked Questions
What is Newport Beach's transient occupancy tax rate?
Do short-term rental hosts need to register separately?
What happens if the tax is paid late?
Can a guest get a refund of overpaid occupancy tax?
Sources & Official References
Other rules in Newport Beach
How Newport Beach compares: Cities with the Highest Short-Term Rental Taxes·California rules heatmap·Compare Newport Beach to another location·View the California short-term rentals overview
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