Takoma Park, MD Short-Term Rentals: Taxes & Fees (2026)

Short-term rental hosts in Takoma Park face two primary financial obligations. First, the annual short-term residential rental license fee of $500, paid to the Montgomery County Department of Housing and Community Affairs. Second, the Room Rental-Transient Tax of 7% on total room rental charges collected, imposed under Montgomery County Code Section 52-16. This tax applies to any lodging of 30 or fewer consecutive days. Hosts must register with the Montgomery County Department of Finance, Division of Treasury, and obtain a Maryland 8-digit Tax ID through the Maryland Tax Connect system. Platforms like Airbnb may collect and remit the 7% transient tax on behalf of hosts, but hosts remain ultimately responsible for ensuring the tax is properly paid. Maryland also imposes a state sales tax of 6% on short-term lodging, bringing the combined tax burden to approximately 13% on each booking. Bed and breakfast operators pay a lower license fee of $150 annually but face the same tax obligations. Failure to collect or remit the transient tax can result in penalties, interest, and potential license action. The tax revenue supports Montgomery County general fund services. Hosts should maintain records of all bookings and tax payments for compliance verification.