As vacation rentals grow in popularity, more owners, property managers and guests utilize online reservation and payment methods. Charging and collecting the correct tax is increasingly important. Make sure your tax rate is updated and correct on your listing!
Owners and property managers can easily publish their tax rate in the Rates section of their HomeAway listing and include the tax rate on any reservation and payment processed through Reservation Manager. To help track how much you owe, the Payments page of Reservation Manager has a downloadable report that includes the total taxes you collected for a specified period.
Tax rates change often. Please be sure you're checking with your local, state and federal taxing authorities for any changes at least yearly. Tax authorities don’t always provide a lot of advance notice of these changes. The best way to be sure your tax rates are up to date is to check the state revenue agency and the city or county tax collector/finance department websites periodically. You may also need to consult your professional tax advisor for guidance on your specific tax situation.
HomeAway is now required to collect and remit taxes, on your behalf, in some places. More information for European owners here.
In addition some cities now require that you register to rent your home and that you display that information on your listing. In addition many cities have chosen to regulate short term rentals, please be sure you are aware of and follow all of your local laws.
Last Updated April 25, 2018