Massachusetts Short-Term Rental Tax Guide
If you own a short-term rental property in Cape Cod Massachusetts, it’s important to understand your tax responsibilities. This page breaks down who must pay, how much is owed, and how to stay compliant with local and state tax laws. We’ve simplified the process to help you stay informed and stress-free.
Who Is Required to Pay?
Anyone renting out a property for short-term stays (less than 90 days) in Massachusetts is subject to the state’s short-term rental tax. This applies to homeowners, property managers, and anyone listing through platforms like Airbnb or Vrbo. Registration is required before collecting taxes.
What Are the Tax Rates?
The total tax rate ranges from 11.7% to 17.45%, depending on your property's location. This includes the state excise tax (5.7%), local option tax (up to 6%), and in some cases, community impact fees (up to 3%). It’s important to check with your town’s local rules.
How to File and Stay Compliant
Register your rental with the Massachusetts Department of Revenue before collecting any taxes. You’ll need to file monthly or quarterly returns based on your rental activity. Keep records of all bookings, income, and tax payments to ensure full compliance and avoid penalties.