Merced County, CA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Tax rate
- 10% of rent charged
- Registration deadline
- Within 30 days of starting business
- Filing frequency
- Quarterly returns to tax collector
- Late penalty
- 10% then additional 10% after 30 days
- Fraud penalty
- 25% plus 1.5% monthly interest
Summary
Short-term rental operators in unincorporated Merced County must collect and remit a 10% Transient Occupancy Tax under Chapter 5.32, on top of the Administrative Permit required by Section 18.60.270. Operators must register with the county within 30 days of starting business, post a registration certificate, and file returns every quarter.
There is imposed a tax upon each transient for the privilege of occupancy in any hotel or other transient facility in any unincorporated area within the county. The tax imposed by this chapter shall be at the rate of 10% of the rent charged by the operator, on the effective date of the ordinance codified in this chapter. Said tax constitutes a debt owed by the transient to the county which is extinguished only by payment to the operator or directly to the tax collector.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4930839; v8 updated 2026-06-02).
Full Breakdown
040 imposes the tax directly: 'The tax imposed by this chapter shall be at the rate of 10% of the rent charged by the operator,' payable by the transient guest at the time rent is paid and owed to the county regardless of whether the operator actually collects it. 070 requires every operator, including a 'short-term residential rental,' to register with the community and economic development department before starting business and obtain a Transient Occupancy Registration Certificate that must be posted in a conspicuous place on the rental premises; registration is due within 30 days of commencing business, and late registration does not excuse tax owed from the date operations began.
270(D)(11)(b) separately requires every rental advertisement to display the operator's Transient Occupancy Tax Certificate Number alongside the permit number, tying the tax registration directly to the zoning permit. 080, with the tax collector authorized to demand monthly filing if an operator misses the quarterly deadline. 5% per month on the unpaid tax from the date it became delinquent.
Violations & Fines
Failing to register, collect, or remit the 10% Transient Occupancy Tax under Chapter 5.32 exposes an operator to a 10% delinquency penalty, a second 10% penalty after 30 days of continued nonpayment, a 25% penalty for fraud, and 1.5% monthly interest under Section 5.32.090, on top of a certificate of tax lien the tax collector can record against the operator's real property under Section 5.32.110.
Frequently Asked Questions
What is the transient occupancy tax rate for Merced County short-term rentals?
Do short-term rental operators need to register separately from their zoning permit?
What happens if an operator pays the occupancy tax late?
Sources & Official References
Other rules in Merced County
How Merced County compares: Cities with the Highest Short-Term Rental Taxes·California rules heatmap·Compare Merced County to another location·View the California short-term rentals overview
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