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

Hotel Occupancy Tax

Who is responsible for this tax?

Hotel owners, operators or managers must collect state hotel occupancy tax from their guests who rent a room or space in a hotel costing $15 or more each day. The tax applies not only to hotels and motels, but also to bed and breakfasts, condominiums, apartments and houses. Local hotel taxes apply to sleeping rooms costing $2 or more each day.

With the numerous sporting and entertainment events around the state, many homeowners rent their homes or rooms in their house to people attending these events. Persons leasing their houses must collect hotel occupancy tax from their customers in the same way a hotel or motel collects the tax from its guests. Property management companies, online travel companies and other third-party rental companies may also be responsible for collecting the tax.

Rates

The state hotel occupancy tax rate is 6 percent (.06) of the cost of a room.

Cities and certain counties and special purpose districts are authorized to impose an additional local hotel tax that the local taxing authority collects.

Due Date

Monthly: 20th day of the month following the end of each calendar month (for example, April 20 for March activity). Quarterly (if qualified): 20th day of the month following end of the calendar quarter (for example, April 20 for first quarter activity).

Tax Laws: Chapter 156, Tax Code (State); Chapter 351, Tax Code (Municipal); Chapter 352, Tax Code (County); Chapter 334, Local Government Code (Sports & Community Venues).