STR Rule Watch

Texas Short-Term Rental Laws by City (2026)

Short-term rental rules in Texas are set city by city — a property that is legal to rent nightly in one town can be prohibited a few miles away. The table below covers 8 Texas cities (8 human-verified against official sources), with each city's legal status, permit cost, and last-verified date.

Statewide short-term rental rules in Texas

Texas has no statewide short-term rental license, registration, or permit — regulation is left almost entirely to cities and counties, and the Legislature has repeatedly failed to pass STR-specific preemption (most recently SB 1592 on platform tax collection, which died in the House in 2025). The state does tax STR stays: a 6% state hotel occupancy tax applies to rentals of residential property for under 30 days, and Airbnb and Vrbo collect it on their bookings under agreements with the Texas Comptroller. Texas courts, not the Legislature, are the main statewide check on local rules — appellate decisions (Zaatari v. Austin, City of Grapevine v. Muns, and the injunction against Dallas's ban now before the Texas Supreme Court) have blocked outright city bans as unconstitutional. City and county rules apply on top of state law — check your local market's page.

Full statewide rules: permits, taxes & enforcement
AllowedAllowed, no permit required

Texas has no statewide short-term rental license, registration, or permit — regulation is left almost entirely to cities and counties, and the Legislature has repeatedly failed to pass STR-specific preemption (most recently SB 1592 on platform tax collection, which died in the House in 2025). The state does tax STR stays: a 6% state hotel occupancy tax applies to rentals of residential property for under 30 days, and Airbnb and Vrbo collect it on their bookings under agreements with the Texas Comptroller. Texas courts, not the Legislature, are the main statewide check on local rules — appellate decisions (Zaatari v. Austin, City of Grapevine v. Muns, and the injunction against Dallas's ban now before the Texas Supreme Court) have blocked outright city bans as unconstitutional. City and county rules apply on top of state law — check your local market's page.

✓ Last verified July 12, 2026 · 9 official sources

Reviewed by the STR Rule Watch research team against 9 official sources. How we verify data

Texas statewide STR rules at a glance

Key short-term rental facts for Texas
Legal statusAllowed, no permit required
Permit requiredNo
RenewalNo renewal required
Total occupancy taxes~6% of gross revenue
EnforcementThere is no state STR enforcement agency; enforcement of operating rules is entirely local.

State law & local authority

Texas has no STR-specific preemption statute: home-rule cities and counties may adopt registration, zoning, and operating rules for STRs, and the Legislature has not enacted an Arizona SB1350-style law despite repeated attempts (2017 SB 451/HB 2551 through 2025 bills all failed). Two statewide constraints exist. First, HB 2127 (the 2023 'Texas Regulatory Consistency Act') broadly preempts local rules in fields occupied by certain state codes, but it does not mention STRs; a Travis County ruling that it was unconstitutional was reversed on standing grounds by the Third Court of Appeals on July 18, 2025, leaving the law in effect, and its application to STR ordinances remains untested. Second, Texas appellate courts have repeatedly struck down or enjoined outright city bans: Zaatari v. City of Austin (Tex. App.—Austin 2019) voided Austin's phase-out of non-homestead STRs as unconstitutionally retroactive; City of Grapevine v. Muns (Tex. App.—Fort Worth 2021, review denied by the Texas Supreme Court in 2023) let owners' constitutional challenges to a ban proceed; and Dallas's 2023 single-family-zoning ban has been enjoined since 2023, with the Texas Supreme Court asked in late 2025 to decide the issue. Bans and heavy restrictions are legally vulnerable but not categorically prohibited by statute.

State-level taxes

TaxRateWho collects
Texas state hotel occupancy taxTax Code ch. 156: 6% of the price paid for a room costing $15 or more per day; 'short-term rental' (rental of all or part of a residential property to a non-permanent resident, i.e., 29 days or less) is expressly covered, and guests staying 30+ consecutive days are exempt as permanent residents. Airbnb (since May 1, 2017) and Vrbo collect and remit the state 6% on their bookings under agreements with the Comptroller; hosts must register with the Comptroller and file monthly or quarterly returns for direct bookings or platforms that do not collect. Local (city/county) hotel occupancy taxes are separate and collection by platforms varies by jurisdiction.6%varies

Enforcement & penalties

There is no state STR enforcement agency; enforcement of operating rules is entirely local. The Comptroller of Public Accounts administers the state hotel occupancy tax. At the state level the courts are the main actor: injunctions and appellate rulings (Zaatari, Grapevine, Dallas) currently prevent several Texas cities from enforcing STR bans, and the Dallas case is pending before the Texas Supreme Court.

State-level exposure is limited to hotel occupancy tax noncompliance (penalties and interest on late or unfiled Tax Code ch. 156 returns). Fines for operating without a permit, over-occupancy, etc. exist only under local ordinances.

Statewide sources

CityStatusPermit feeLast verified
AustinPermit required$836.30August 15, 2026
DallasPermit requiredJuly 12, 2026
Fort WorthRestricted$150July 21, 2026
FredericksburgPermit required$300July 10, 2026
GalvestonPermit required$250July 10, 2026
HoustonPermit required$275July 12, 2026
New BraunfelsRestricted$206July 21, 2026
San AntonioPermit required$300July 13, 2026

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This page is informational only and is not legal, tax, or financial advice. Regulations change frequently — verify current requirements with each jurisdiction before operating. HOA and condo rules may prohibit short-term rentals regardless of city law — if your property is in an association, review Texas HOA law and your CC&Rs before listing.

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