Short-term rental & Airbnb taxes in Traverse City, MI (2026)
Short-term rental guests in Traverse City pay roughly 11% in combined occupancy and lodging taxes. Here's the itemized breakdown, who collects each one, and what you may need to remit yourself.
Itemized tax rates
| Tax | Rate | Who collects |
|---|---|---|
| Michigan Use Tax (accommodations)Applies to stays of fewer than 30 nights. Airbnb collects and remits it for its bookings ('Use Tax: 6% of the listing price including any cleaning fee for reservations 30 nights and shorter'); hosts must register with Michigan Treasury and remit for direct bookings and platforms that do not collect. | 6% | varies |
| Traverse City Tourism lodging assessmentRegional destination-marketing assessment under Michigan PA 395 of 1980, applicable only to 'transient facilities' - buildings under common ownership, operation, or management containing 10 or more rooms. Most single-unit STRs are not subject, but in Traverse City Tourism v. Golden Swan Management the Michigan Court of Appeals (ruling reported February 2025) upheld the trial court and held that operators or managers with 10 or more rooms under common management are subject to the assessment even when the rooms are spread across separate buildings - so STR management companies managing 10+ rooms in the assessment district are covered. A further appeal to the Michigan Supreme Court remained possible but none was reported as pending. Not collected by platforms; qualifying operators remit to Traverse City Tourism. | 5% | host |
What will guests pay on a Traverse City stay?
Enter a nightly rate to see the itemized occupancy-tax cost.
Traverse City occupancy tax calculator
| Gross rent | $450.00 |
| Michigan Use Tax (accommodations) (6%)· collection varies | $27.00 |
| Traverse City Tourism lodging assessment (5%)· host remits | $22.50 |
| Total tax (11%) | $49.50 |
| Guest pays | $499.50 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
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Verified July 13, 2026. Informational only — not legal, tax, or financial advice. Tax rates and collection rules change; confirm current requirements with Traverse City and your booking platform.