Massachusetts Short-Term Rental Room Occupancy Excise Tax

Chapter 337 of the Acts of 2018 amended G.L. c. 64G to extend the room occupancy excise to short-term rentals of 31 days or less. Operators must register with the Massachusetts Department of Revenue, collect the 5.7% state excise, and remit any local option excise (up to 6%, or 6.5% in Boston). A 2.75% Cape Cod and Islands Water Protection Fund surcharge applies in those communities. Hosts renting fewer than 14 days annually are exempt. Registration with DOR's MassTaxConnect is mandatory before listing.

Failure to register and remit excise taxes results in DOR penalties, interest, and possible loss of registration certificate.