--- title: "Hotel Occupancy Tax and Short-Term Rentals in Grapevine" description: "What Grapevine allows for short-term rentals, how the 6% state and 7% city hotel occupancy taxes work, and who collects and files each one." url: https://wallacecpa.multisites.ai/blog/hotel-occupancy-tax-grapevine-short-term-rentals publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- # Hotel Occupancy Tax and Short-Term Rentals in Grapevine In Grapevine, hotel occupancy tax has two parts: a 6 percent state tax the Texas Comptroller collects and a 7 percent city tax. The city also forbids single-family short-term rentals, so first check that a rental is allowed at all. Local: GrapevinePublished September 28, 20263 min read ## Can I rent out my home short term in Grapevine? Usually not. The City of Grapevine says single-family short-term rentals are prohibited. A short-term rental is the rental of any dwelling or part of one for less than 30 days. The city’s FAQ says this applies to all residential properties, even a primary residence. The city did change its rules for apartments. On January 16, 2024, it amended the zoning ordinance to allow multifamily short-term rentals under specific conditions. A multifamily owner needs City Council approval of a conditional use request, then a permit and an inspection of the units. Read the city’s pages and the ordinance before you plan anything. Tax questions come second to this one. ## What is hotel occupancy tax? It is a tax on lodging. The Comptroller says the state rate is 6 percent of the cost of a room. Cities and certain counties and special districts may add a local hotel tax, which the local authority collects. Grapevine’s tax page says the city increased its hotel occupancy tax rate to 7%, beginning October 1, 2014, by Ordinance No. 2014-37. The city page does not give a date for the rate in force today. Check the city’s page for any change before you set a price. Tax Rate Who collects it State hotel occupancy tax 6 percent of the cost of a room Texas Comptroller Grapevine hotel occupancy tax 7% (per a 2014 ordinance on the city’s tax page) City of Grapevine The city page links an online Hotel Occupancy Tax Remittance Form. Your records should show room charges separately from any other fees. A tidy [bookkeeping](https://wallacecpa.multisites.ai/glossary/bookkeeping) setup makes that easy. ## Do short-term rentals owe the state tax? Yes, where they are lawful. The Comptroller says state hotel occupancy tax must be collected and remitted for all short-term rentals in Texas. For this purpose it defines a short-term rental as the rental of all or part of a residential property to a person who is not a permanent resident, meaning a rental of 29 days or less. Platforms matter. The Comptroller says that if a short-term rental platform has agreed to collect and remit state tax for you, the property owner is not required to collect and remit it for those bookings. If you rent through your own website or a platform that does not collect, you must collect and remit. The owner should still contact the county and city about local tax. ## When is the state report due? For the state tax, the Comptroller lists a monthly due date of the 20th of the month after the month ends. For example, April 20 is the date for March activity. Quarterly filing is possible for those who qualify, with the same 20th-of-the-month rule after the quarter ends. Late reports carry a $50 penalty. Tax paid 1 to 30 days late draws a 5 percent penalty, and over 30 days late a 10 percent penalty. Dates and rates are the Comptroller’s as read in October 2026. Check the page before each filing. ## Who else should I read about? Hotels and other lodging operators face the same state and city tax, and a lodging business also deals with [sales and use tax](https://wallacecpa.multisites.ai/glossary/sales-and-use-tax) on other sales. If you are forming an entity to own a rental, read about the [limited liability company](https://wallacecpa.multisites.ai/glossary/limited-liability-company-llc). An attorney handles the entity and the zoning questions. Our [Grapevine page](https://wallacecpa.multisites.ai/service-areas/cpa-grapevine-tx) lists local facts. ## Is a long stay exempt? Some stays are. The Comptroller says permanent residents who occupy a room for at least 30 consecutive days are exempt, and that any interruption in the term of occupancy voids the exemption. The Comptroller also says a hotel is liable for the tax if a guest fails to stay for 30 consecutive days. Because of that, many operators keep written records for long stays. This ties back to Grapevine’s rule too: the city says a residence may be leased for more than 30 consecutive days. ## Next step Wallace CPA offers [bookkeeping and accounting for small businesses](https://wallacecpa.multisites.ai/services/small-business-accounting). Call (877) 682-1171 or use the form at [/contact](https://wallacecpa.multisites.ai/contact) to set up your tax records. This post is general information, not advice for your situation. Talk to a CPA about your own situation, and ask an attorney about zoning and legal structure. ## Frequently asked questions ### Can I run a short-term rental at my house in Grapevine? The City of Grapevine says single-family short-term rentals are prohibited. Multifamily short-term rentals are allowed only under conditions set by a 2024 zoning amendment. Check with the city. ### What is the Texas state hotel occupancy tax rate? The Comptroller says the state rate is 6 percent of the cost of a room. ### Who collects the local hotel tax? The Comptroller says its office collects the 6 percent state tax. Cities and counties collect their own local hotel taxes. ## Terms on this page - [Limited liability company (LLC)](https://wallacecpa.multisites.ai/glossary/limited-liability-company-llc) - [Sales and use tax](https://wallacecpa.multisites.ai/glossary/sales-and-use-tax) - [Bookkeeping](https://wallacecpa.multisites.ai/glossary/bookkeeping) ## Sources 1. [City of Grapevine: Short-term rental FAQ](https://www.grapevinetexas.gov/faq.aspx?TID=43) 2. [City of Grapevine: Multifamily Short-term Rentals](https://www.grapevinetexas.gov/1836/Multifamily-Short-term-Rentals) 3. [City of Grapevine: Taxes](https://grapevinetexas.gov/113/Taxes) 4. [Texas Comptroller: Hotel occupancy tax](https://comptroller.texas.gov/taxes/hotel/) 5. [Texas Comptroller: Hotel occupancy tax FAQs](https://comptroller.texas.gov/taxes/hotel/faq.php) Written by Wallace CPA and checked against the sources above on September 28, 2026. Tax rules and dates change, so check the linked page before you act. General information, not advice for your situation. ## Keep reading - [How long to keep tax records, and which onesThe IRS says to keep records that support your tax return until the period of limitations runs out. For most returns that is 3 years.](https://wallacecpa.multisites.ai/guides/how-long-to-keep-tax-records) - [Got an IRS notice? How to read it and what to do firstRead the whole notice, find its CP or LTR number, and note the reply date. A CP2000 is a proposal to change your return, not a bill.](https://wallacecpa.multisites.ai/guides/irs-notice-what-to-do) - [IRS payment plans and offers in compromise: what each one isAn IRS payment plan lets you pay a tax bill over time. An offer in compromise asks the IRS to accept less than the full amount. The IRS decides each case.](https://wallacecpa.multisites.ai/guides/irs-payment-plans-and-offers-in-compromise) - [How to protest your property tax value in Tarrant and Denton countiesIn Tarrant and Denton counties, you protest your property value with your county appraisal district.](https://wallacecpa.multisites.ai/guides/property-tax-protest-tarrant-denton) - [S corporation, LLC or sole proprietor: how the choices differ in TexasA sole proprietor reports business income on Schedule C of the personal return. An LLC is a legal structure, and its federal tax treatment depends on what it...](https://wallacecpa.multisites.ai/guides/s-corp-llc-sole-proprietor-texas) - [Small business bookkeeping setup and a monthly routineStart with a separate business bank account, a simple chart of accounts and one place for receipts.](https://wallacecpa.multisites.ai/guides/small-business-bookkeeping-routine) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092