Occupancy tax collection and remittance by Airbnb in Missouri (2024)

FAQs

What does occupancy taxes mean on Airbnb? ›

Occupancy taxes, also commonly known as lodging tax, room tax, hotel tax, or tourist tax, are taxes that hosts and property managers are required to collect from guests then pay to state and/or local tax authorities when operating a short-term rental.

Airbnb then remits collected taxes to the applicable tax authority on the hosts' behalf. This can apply to occupancy taxes, value added taxes (VAT), and good and service taxes (GST) on accommodations. Find out more about how occupancy tax collection and remittance by Airbnb works.

Missouri State Sales Tax: 4.225% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, please visit the Missouri Department of Revenue website.

We automatically collect and pay occupancy taxes on behalf of hosts whenever a guest pays for a booking in specific jurisdictions.

To account for short-term rental income, the 14-day rule allows Airbnb hosts to avoid paying taxes if they rent a property for fewer than 14 days per year. The 14-day rule is a common provision in tax laws that aim to combat abuses of short-term rental services like Airbnb.

Here is an occupancy rate formula you can use to calculate an occupancy rate for your Airbnb: Divide the number of booked nights by the number of nights available for booking and multiply by 100%. The occupancy rate is important because it directly affects the revenue.

When a company remits sales tax to the government, it simply means they are sending the cash to the government. As you can see in the visual below, the money is collected by the company and then “remitted” or sent to the government (tax authority). The company sends 100% of the sales tax collected to the government.

While filing is reporting the tax that was collected, remittance is taking the tax collected and transferring it to the state or other local tax authority.

Form 1099-K reports gross payment transactions processed on your behalf by Airbnb. As a Third Party Settlement Organization (TPSO), Airbnb is required by the Internal Revenue Service (IRS) and state tax authorities to issue Form 1099-K to US citizen or US tax resident Hosts who meet 1099-K reporting thresholds.

These include: A Short-term rental license is required to operate. Short-term rental of a residence: No more than 5 unrelated persons or any number of persons related by blood, marriage, or adoption are permitted. For provided parking, 2 on-site parking spots are required where on-street parking is permitted.

How much tax do you have to pay on Airbnb? ›

Any Host with (a) US listing(s) who provides Airbnb Form W-8BEN (for individuals) or Form W-8BEN-E (for entities) will be subject to 30% US withholding tax on payouts on their US listing(s).

Hotels and motels located inside the boundary of St. Louis City, according to state law, must pay a room tax on the room sales for each calendar quarter. The tax is 3.5% for the Convention and Sports Tax and 3.75% for the Convention and Tourism Tax.

If you are subject to U.S. income tax, you must report your rental income as a cash-basis or accrual- basis taxpayer. If you are a cash-basis taxpayer, you report rental income on your return for the year you actually or constructively receive it and you deduct all expenses in the year you actually pay them.

When you rent out your home, make bookings and provide amenities or services, like coffee or breakfast, the IRS may treat you as being self-employed in the vacation rental business. If you are self-employed, you have to pay self-employment taxes, as well as income taxes.

Your nightly rate plus your optional extra charges (a cleaning fee or extra guest fee, etc.) minus the Host service fee and any Co-Host payouts you share = your payout. The Host service fee is calculated by multiplying the total booking amount by a percentage and then is automatically subtracted from your payout.

Occupancy taxes typically apply to short-term lodging rentals, and go by many names, such as hotel tax, hotel/motel tax, lodging tax and transient room tax. The laws that impose these taxes typically define the length of stay subject to the tax.

In some locations, Airbnb has made agreements with government officials to collect and remit certain local taxes on behalf of Hosts. The taxes vary and may include calculations based on a flat rate or percentage rate, number of guests, number of nights, or property type booked, depending on local law.

Florida Airbnb Taxation

This includes the Florida Transient Rental Tax of 6%, Florida Discretionary Sales Surtax of 0.5-1.5% and the County Tourist Development Tax of 2-5% for 24 counties. All of these taxes are based on the listing price including cleaning fees.

Florida's 6% state sales tax, plus any applicable discretionary sales surtax, applies to rental charges or room rates paid for the right to use or occupy living quarters or sleeping or housekeeping accommodations for rental periods six months or less, often called “transient rental accommodations” or “transient rentals ...