Short-Term Rental Rules in Texas (2025 Guide)

Texas has no statewide short-term rental license. Your obligations are split between state tax law and local rules from your city, county, and HOA. Those local rules vary dramatically.

Quick Answer: How Are Short-Term Rentals Regulated in Texas?

Texas does not have a single statewide STR licensing or registration law. The state's role focuses almost entirely on taxes. Regulation falls to cities, counties, and private deed restrictions, meaning a host in Austin faces a completely different compliance picture than one in Houston or Galveston.

The regulatory layers include:

State level: The Texas Tax Code defines any dwelling rented for 30 consecutive days or fewer as a "hotel" for tax purposes (Texas Tax Code § 156.001). This triggers the state Hotel Occupancy Tax (HOT), collected and remitted to the Texas Comptroller. Platforms like Airbnb and Vrbo have marketplace provider agreements with the Comptroller and remit state and local HOT on your behalf in most cases, but you remain legally responsible for verifying that coverage.

Local level: Cities and counties layer on their own HOT rates and, increasingly, their own permit and zoning requirements. Texas does not prevent cities from banning STRs outright. A Texas city can prohibit non-owner-occupied STRs in residential zones entirely, and several have.

HOA/deed restrictions: Even if your city allows STRs, a private deed restriction or HOA covenant can ban them. That ban is enforceable under Texas Property Code Chapter 202 regardless of what the city permits.

State vs. Local Obligations at a Glance

Texas State-Level Requirements: Taxes and Baseline Rules

The state's primary hook on STR hosts is the Hotel Occupancy Tax. Under Texas Tax Code § 156.001, a "hotel" includes any building where a room or space is furnished for consideration for fewer than 30 consecutive days. That definition captures Airbnb listings, Vrbo cabins, and spare bedrooms.

Hotel Occupancy Tax Rates

The state HOT rate is 6% of gross rental receipts (Texas Tax Code § 156.051). On top of that:

• Cities may impose up to 7% under Texas Tax Code § 351.003.
• Counties may impose up to 2% under Texas Tax Code § 352.003.

Combined rates in major Texas markets regularly exceed 15%. Verify the exact combined rate for your specific address with the Texas Comptroller (comptroller.texas.gov/taxes/hotel) or call 1-800-252-5555.

Who Actually Remits the Tax

If you list on a platform with an active marketplace provider agreement with the Texas Comptroller, it collects and remits state and local HOT on your transactions. As of 2025, both Airbnb and Vrbo maintain such agreements, but the scope of local jurisdiction coverage can change. Confirm your platform's current coverage at the Comptroller's marketplace provider agreements list before assuming you are fully covered.

If you rent through a channel not covered by a Comptroller agreement, you must register with the Texas Comptroller under Texas Comptroller Rule 3.161 and file HOT returns yourself.

No State STR License

There is no state-issued STR permit or license in Texas. Tax registration with the Comptroller is the only state-level administrative step for most hosts. If you rent your primary residence, the homestead exemption on your property taxes is generally unaffected. However, if a significant portion of the home is used exclusively for commercial rental, consult your county appraisal district, as it may affect the exemption calculation.

Texas Does Not Preempt Local STR Bans

Texas has not passed a law preventing cities from banning or heavily restricting STRs. A city can zone STRs out of residential neighborhoods entirely, and courts have generally upheld that authority.

Local Permit Requirements: Austin, Houston, Dallas, and San Antonio Compared

The four largest Texas cities illustrate the full range of approaches, from no permit at all to a tiered licensing system.

City Comparison Table

Austin

Austin's STR program is governed by Austin City Code Chapter 4-18. The city divides licenses into two types:

• Type 1: The host's primary residence.
• Type 2: Non-owner-occupied residential property used as an STR.

Type 2 licenses in residential zoning districts have been the subject of prolonged legal battles. Austin imposed a cap on new Type 2 licenses in residential zones and at various points stopped issuing them entirely. The Type 2 situation in residential zones remains constrained. Consult the Austin Short-Term Rental program directly at austintexas.gov/STR for current issuance status before purchasing or listing a non-owner-occupied property.

Houston

Houston has no citywide STR-specific permit requirement as of 2025. Hosts must comply with general business regulations, state HOT, and any applicable local HOT. Houston's lack of a permit program does not mean anything goes. Zoning, deed restrictions, and HOA rules still apply.

Dallas

Dallas enacted an STR registration ordinance. Consult the Dallas Development Services STR registration portal for current fees and renewal cycles, as fee schedules are updated periodically. Listing without required registration exposes you to code enforcement action.

San Antonio

San Antonio's Development Services Department administers an STR permit program with tiers based on owner-occupancy. Permit fees and specific tier requirements should be confirmed directly with San Antonio Development Services. Noise and nuisance rules are actively enforced, and repeat violations can result in permit revocation. San Antonio requires the permit number to appear in all advertising.

Smaller Texas Markets

Galveston, South Padre Island, Port Aransas, and other coastal and resort markets have their own distinct STR ordinances, often more restrictive than major cities. Check locally before listing in any of these markets.

HOA and Deed Restriction Rules for Texas STRs

A city permit does not override your HOA or deed restrictions.

How Texas Law Works

Texas Property Code Chapter 202 governs restrictive covenants in residential subdivisions. An HOA or a group of property owners can enforce deed restrictions that prohibit or limit STR activity. Under Texas Property Code § 202.006, deed restrictions must be filed in the real property records of the county where the property is located.

The enforceability of HOA STR bans does not depend on whether the city allows STRs. These are private contracts running with the land, and Texas courts have consistently enforced them.

HB 5225 (89th Legislature, 2025)

HB 5225 (89R) was referred to the House Committee on Trade, Workforce & Economic Development. The bill relates to the powers and duties of property owners' associations. As of April 2025, it had not advanced beyond committee referral and has not passed. Do not rely on it to limit your HOA's authority.

Grandfathering Questions

Some Texas HOAs adopted STR bans after hosts were already operating. Whether an existing operator is grandfathered depends on the specific language of the restriction and when it was adopted. This is a fact-specific legal question. Consult a Texas real estate attorney before assuming you are protected.

How to Check Your Deed Restrictions

1. Contact your county clerk's office and request the deed restrictions filed against your property's subdivision or lot.
2. Request the CC&Rs directly from your HOA management company in writing.
3. Review your title commitment if you purchased recently, as deed restrictions are typically listed as exceptions to coverage.

What Changed Recently: 2024–2025 Texas Legislative and Regulatory Updates

SB 840 (89th Legislature) — Effective 9/1/2025

SB 840 (89R) addresses municipal regulation of mixed-use and multifamily residential development, including conversion of commercial buildings to such uses. It takes effect September 1, 2025. The bill's subject is development regulation, not STRs specifically. If SB 840 makes it easier to convert commercial buildings to residential or mixed-use occupancy in your city, it may expand the pool of properties that can legally operate as STRs under mixed-use zoning. Check with your municipality after 9/1/2025 for implementation guidance.

HB 2464 (89th Legislature) — Effective Immediately

HB 2464 (89R) limits municipal authority to regulate home-based businesses and took effect immediately. The bill's subjects include business and commerce, city land use and zoning, fire safety, and property owners' associations.

Whether an STR qualifies as a "home-based business" under HB 2464 is not settled. The bill's protections are most clearly applicable to businesses operated by the resident from their home. A non-owner-occupied STR likely does not qualify. An owner-occupied STR has a stronger argument, but this has not been tested in Texas courts as of mid-2025. Do not treat HB 2464 as a shield against city STR permit requirements without legal advice.

ADU Bills: HB 1779, HB 2480, HB 878 (89th Legislature)

All three bills would limit political subdivisions from banning or over-restricting accessory dwelling units (ADUs). All three were referred to the House Committee on Land & Resource Management and had not passed as of their last update in the source material. ADUs are frequently used as STRs, so passage of any of these bills would expand STR-eligible inventory in cities that currently restrict ADU construction.

Austin Type 2 STR Litigation

Austin's restrictions on Type 2 STR licenses in residential zones have been contested in court for several years. Consult the Austin STR program page (austintexas.gov/STR) for current issuance status and review any recent court rulings through Travis County District Court records if you are considering a non-owner-occupied property in Austin.

Texas Comptroller Platform Agreements

Airbnb and Vrbo maintain active marketplace provider agreements with the Texas Comptroller as of 2025, covering state and local HOT remittance for transactions processed through their platforms. Verify current coverage at comptroller.texas.gov/taxes/hotel before assuming your platform handles all applicable taxes.

Operating Rules: Safety, Insurance, and Neighbor Requirements

A permit is the first step. Daily operational compliance prevents most enforcement issues.

Fire and Life Safety

Texas law and local codes require functioning smoke detectors and, in many jurisdictions, carbon monoxide detectors in rental properties. Most Texas city STR ordinances also require a fire extinguisher on each floor. Austin City Code § 4-18-33 provides an example of these operational standards. Check your specific city's requirements.

Occupancy Limits

Most Texas city STR ordinances cap occupancy at two guests per bedroom plus two additional guests, though the exact formula varies. Exceeding posted occupancy limits is a common basis for enforcement.

Noise and Nuisance

Cities enforce quiet hours, typically from 10 p.m. to 7 a.m. Repeat noise complaints can trigger permit revocation. Some cities, including San Antonio, maintain a complaint hotline for STR nuisance issues. Post quiet hours rules visibly inside the unit.

Parking

Many Texas city ordinances require a minimum number of off-street parking spaces tied to bedroom count. Confirm your property meets the requirement before listing.

Insurance

Standard homeowner's insurance policies typically exclude or limit coverage for STR activity. If a guest is injured or causes damage, your policy may deny the claim. Obtain an STR-specific policy or a commercial landlord rider that explicitly covers short-term rental use. Platform host protection programs are not a substitute for your own policy.

Pool and Hot Tub Safety

If your STR has a pool or hot tub, Texas Health & Safety Code § 341.064 sets minimum safety standards for residential pools, including fencing. Local codes may add requirements. Confirm compliance before allowing guest access.

Advertising Compliance

Austin, San Antonio, and several other Texas cities require the STR permit number to appear in all listings and advertisements. Failure to display the permit number is an independent violation.

Next Steps: How to Get Compliant and Who to Contact

Work through these steps in order before your first booking.

Step 1: Check deed restrictions and HOA CC&Rs. Pull the deed restrictions from your county clerk's real property records and request the CC&Rs from your HOA. Do this first, because no city permit can override a private covenant that bans STRs.

Step 2: Look up your city's STR ordinance. Use the portals listed in the contacts table below. If you are outside a major city, call the city or county planning department.

Step 3: Register with the Texas Comptroller if needed. If your platform does not cover HOT remittance for your jurisdiction, register at comptroller.texas.gov/taxes/hotel. Phone: 1-800-252-5555.

Step 4: Apply for your city STR permit before listing. Do not list until the permit is in hand.

Step 5: Obtain STR insurance coverage. Contact your homeowner's insurer and ask explicitly whether STR activity is covered. If not, obtain a separate STR policy or rider.

Step 6: Post your permit number in your listing if your city requires it.

Step 7: Check back after 9/1/2025 for municipal guidance on SB 840 implementation if you are considering a mixed-use or converted commercial property.

Key Contacts