Massachusetts Short-Term Rental Sales Tax
Starting July 1, 2019, any property which is rented for more than 14 days in a calendar year and for more than $15 per day is subject to a Room Occupancy Excise. This excise applies to all short-term rental contracts created on or after January 1, 2019.
A “short-term rental property” is defined as any occupied property where at least one (1) room or unit is rented though advanced reservations (such as Airbnb), for a period of less than 31 consecutive days per rental period.
You must register your short-term rental(s) with MassTaxConnect!
Your short-term rental property must be registered with the State of Massachusetts’s Department of Revenue website, MassTaxConnect (MTC), regardless of the number of days per year you rent your property. However, if you rent your property for 14 days or less per year, you are exempt from the tax, and can indicate this in MTC when you register your property.
How to add your property to MTC:
What gets taxed?
Any rent collected for a short-term rental is subject to this tax. “Rent” is defined as all amounts collected in exchange for occupancy, including optional charges such as insurance, cleaning fees, and booking fees. Refundable security deposits are excluded.
How much is the tax?
When and how to pay the tax:
Room occupancy returns and taxes are due on the 20th of the month immediately following the month in which rentals took place. For example, if you rented a room from September 15th to September 22nd, you must file a return on or before October 20th.
You can submit returns and payments on a per-property basis, or you can consolidate multiple properties using an Excel template you can download from MTC.
For more information:
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