Hosting in Florida? While many short-term rental hosts may be familiar with the 6% state sales tax, the reality is that there are several other taxes you may owe that you might not even know about. Florida’s tax structure for short-term rentals can be complex, and as a host, you are responsible for ensuring that you’re paying the correct amount—no matter what platform you’re using.
In this blog, we’ll break down the taxes you may owe when hosting a short-term rental in Florida, including State Sales Tax, the Tourist Development Tax (TDT), Resort Tax, and county-specific surtaxes. The key takeaway: even if a platform like Airbnb helps collect and remit these taxes, YOU are still legally responsible. Missing just one of these taxes could result in fines, audits, or worse—so it’s critical to understand the full breakdown. Let’s dive in!
State Sales Tax (6%)
In Florida, all short-term rental hosts are required to collect a 6% state sales tax. Whether you’re renting out a single room or an entire property, if your guests are staying for six months or less, you must charge them this tax.
This 6% sales tax is required by law and is applied to the total rental cost before any additional charges. Platforms like Airbnb may help by automatically collecting and remitting this tax, but it’s ultimately your responsibility as the host to ensure the tax is paid correctly.
Tip: Check if your platform collects this tax for you, but always double-check to ensure you’re meeting the state’s requirements. If you’re handling your own bookings, be sure to collect the tax yourself.
Tourist Development Tax (TDT) (4–6%, by county)
Also known as the bed tax or occupancy tax, the Tourist Development Tax (TDT) is another key tax short-term rental hosts in Florida need to be aware of. This tax is assessed by individual counties and can range from 4% to 6% depending on where your rental property is located.
The purpose of this tax is to fund local tourism initiatives, like advertising, marketing, and the development of tourism-related services. Just like the State Sales Tax, TDT is often automatically collected by booking platforms, but it’s still your responsibility to ensure it’s paid properly.
Key Points:
• The tax rate varies depending on your county.
• Common counties with higher TDT rates include Miami-Dade, Orange, and Broward counties.
Tip: Be sure to check the specific rate for your county. You can typically find this information on your county’s official website or by contacting the local tax office.
Resort Tax (4% in Miami-Dade)
If your property is located in Miami-Dade County, you’re also required to collect a Resort Tax of 4%. This is a tax that applies specifically to short-term rentals in Miami-Dade, and it’s used to fund local tourism and resort-related services.
As with other taxes, some platforms like Airbnb might assist in collecting this tax, but it’s your responsibility to ensure it’s paid to the county. Miami-Dade’s Resort Tax is an additional burden on top of the State Sales Tax and Tourist Development Tax, so make sure you’re factoring this into your pricing.
Tip: Always double-check if your platform collects this tax for you, or if you need to manually report and pay it to the county.
County-Specific Surtaxes
In addition to the state sales tax, TDT, and resort taxes, certain counties in Florida may impose their own surtaxes on short-term rentals. These surtaxes are often added on top of the regular tax rates and can vary significantly depending on where your rental property is located.
For example, in Miami-Dade County, there may be additional taxes beyond the Resort Tax, or other counties could impose a surtax that directly impacts the rental market.
Tip: Surtaxes can be tricky since they vary widely across Florida. You’ll need to check with your county’s tax authority to ensure you’re compliant.
Why It’s Crucial to Stay Compliant
Some popular platforms like Airbnb may assist with the collection and remittance of taxes like State Sales Tax or TDT, but YOU are still legally responsible for ensuring that the correct amount is being collected and paid. Even if a platform is handling your taxes, the law holds you accountable if any of these taxes are missed.
Failure to comply with Florida’s short-term rental tax laws could result in:
• Fines and Penalties: Missing taxes or incorrect reporting can result in significant fines.
• Audits: In the event of an audit, you may be required to show that you’ve collected and remitted the correct taxes.
• Property Shutdowns: In extreme cases, repeated violations of tax laws could result in your rental being shut down.
How We Can Help
At Lunabase Management, we understand how confusing these taxes can be. That’s why we’re here to help you stay compliant and ensure your rental business is operating without a hitch. Whether you need assistance managing your property or simply want to refer someone to our services, we’ve got you covered.
Message Lunabase Management today for expert help with managing your rental property or join our referral program to start earning by helping others.
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