Pasadena, CA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Tax rate
- 7% of the rent charged by the operator
- Stays covered
- 30 consecutive calendar days or less
- Return due
- Last day of the month after each calendar quarter
- Late penalties
- 10%, another 10% after 20 days, up to 50% total
- Interest on unpaid tax
- 1% per month or fraction of a month
- Fraud penalty
- Additional 25% of the tax
- Record retention
- 3 years (zoning code); 4 years (tax chapter)
Summary
Pasadena charges transient occupancy tax of 7% of the rent on any stay of 30 consecutive calendar days or less, and short-term rental hosts must comply with the whole tax chapter. The guest owes the tax and pays it to the host with the rent. The host registers with the city, files quarterly returns, and remits what was collected, or owes 10% penalties and 1% monthly interest.
The host shall fully comply with all the requirements of PMC Chapter 4.44 (Transient Occupancy Tax) and any successor sections. ... For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of 7% 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. ... Original Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the tax. ... Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of 1% per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the tax first became delinquent until paid.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 79 Update 2).
Full Breakdown
Pasadena ties its short-term rental permit to the transient occupancy tax. Section 17.50.296(G)(3) of the zoning code says the host shall fully comply with all the requirements of PMC Chapter 4.44 and any successor sections. Before a permit is approved, the host must also obtain a transient occupancy registration certificate from the finance department. The permit lasts one year, and renewal requires the host to hand the planning and community development department a copy of the last year's stay records. Under Section 17.50.296(H), the city council sets permit and related fees by resolution, so those amounts sit outside the code text.
The tax is 7% of the rent charged by the operator, and the code defines rent as the consideration charged, whether or not received, valued in money, goods, labor or otherwise, with no deduction. A transient is anyone who occupies or is entitled to occupy for 30 consecutive calendar days or less, counting portions of days as full days. The guest's tax is a debt to the city that only payment to the operator or the city extinguishes. It is due when the rent is paid, a proportionate share comes with each installment, and any unpaid balance is due when the guest leaves. If the host does not collect it, the tax administrator, defined as the city assessor, tax and license collector, may require direct payment.
Operators must state the tax separately from the rent, give each guest a receipt, and never advertise that the tax will be absorbed or left off the bill. Registration is due within 30 days after the business starts, and the certificate must be posted conspicuously on the premises. Returns are due on or before the last day of the month following each calendar quarter, and collected tax is held in trust for the city. Exemptions are narrow: foreign government officers protected by federal law or treaty, who must claim it at the time rent is collected under penalty of perjury, and disaster victims in Red Cross emergency shelter.
Violations & Fines
Missing a remittance deadline adds a 10% penalty. If the tax is still unpaid on the 20th day after it became delinquent, a second 10% penalty applies, up to a maximum of 50%. Fraud adds 25% on top, and interest runs at 1% per month, or fraction of a month, on the tax alone. Penalties and interest merge into the tax owed. A willful violation convicted as a misdemeanor carries a fine of up to $1,000, up to six months in county jail, or both. Under Section 17.50.296(I)(4), a person convicted or found liable in a civil case must also pay all back transient occupancy taxes and turn over illegally obtained rental revenue.
Frequently Asked Questions
Who pays the 7% tax on a Pasadena short-term rental, the guest or the host?
What must a host do about the tax before getting a Pasadena short-term rental permit?
What happens if a host files or pays the occupancy tax late?
Can a host dispute an assessment from the tax administrator?
How long must a Pasadena short-term rental host keep tax records?
Sources & Official References
Other rules in Pasadena
How Pasadena compares: Cities with the Highest Short-Term Rental Taxes·California rules heatmap·Compare Pasadena to another location·View the California short-term rentals overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Taxes & Fees in Nearby Cities
How other cities in Los Angeles County handle taxes & fees.