The Palm Springs transient occupancy tax is 11.5 percent of the rent charged for any lodging stay of 28 consecutive days or fewer, and a separate 1 percent Tourism Business Improvement District assessment applies on top, so guests pay a combined 12.5 percent.1City of Palm Springs. Vacation Rental Transient Occupancy Tax Information Hotels, vacation rentals, and homeshares all collect it from guests and send it to the city every month. The operator is on the hook whether or not the tax actually got added to the guest’s bill.
What the Tax Applies To
The 11.5 percent rate comes from Palm Springs Municipal Code Section 3.24.030. The 1 percent TBID applies citywide to vacation rentals and homeshares of any size; for hotels, it is limited to properties with 49 rooms or fewer.2City of Palm Springs. Tourism Business Improvement District (TBID) TBID is remitted on the same monthly schedule as TOT.
Rent is defined broadly: the total amount charged for occupancy, paid in cash, credit, property, or services. You cannot net out business expenses like credit card processing fees or travel agency commissions before applying the tax.3City of Palm Springs. Palm Springs Code 3.24 – Transient Occupancy Tax Uncollected rent still gets reported on the return, though the city won’t hold you liable for tax on rent you never actually received.
How to Collect It From Guests
Charge the tax at the same time you collect rent, and show it as a separate line item on the guest’s bill. Operators are prohibited from advertising or implying that they will absorb, waive, or refund any part of the tax.3City of Palm Springs. Palm Springs Code 3.24 – Transient Occupancy Tax If you forget to add it, you still owe the city the full amount out of your own pocket.
Who Is Exempt
A guest who stays more than 28 consecutive days is treated as a permanent resident and owes no TOT on that stay.1City of Palm Springs. Vacation Rental Transient Occupancy Tax Information The 28 days have to be unbroken. A guest who stays two weeks, checks out, and comes back for another two weeks does not combine those stays to reach the threshold.3City of Palm Springs. Palm Springs Code 3.24 – Transient Occupancy Tax
Two groups of government travelers are also exempt: federal or state employees traveling on official business, and foreign government employees whose exemption is set out in federal law or an international treaty.1City of Palm Springs. Vacation Rental Transient Occupancy Tax Information For any exemption, you must collect a completed Exemption Certificate from the guest at the time rent is collected. Without that certificate on file, the operator is personally liable for the unpaid tax.
When Returns and Payments Are Due
File a return every month, even if you collected no rent during the period. Returns and payments are due by the last working day of the month following the reporting period. A January return, for instance, must be received by the last working day of February.4City of Palm Springs. Transient Occupancy Tax (TOT) Payments go through the city’s online tax portal or by check mailed to City Hall.
Penalties for Late Payment
Missing a deadline is costly:4City of Palm Springs. Transient Occupancy Tax (TOT)
- First month late: 10 percent of the tax due, or $50, whichever is greater.
- Still unpaid after a second month: an additional 15 percent, bringing the total penalty to 25 percent of the tax due.
Interest also accrues at 1 percent per month from the delinquency date until the tax is paid. If the city determines the failure to pay was fraudulent, it can add a further penalty of 100 percent of the tax and all other penalties combined.3City of Palm Springs. Palm Springs Code 3.24 – Transient Occupancy Tax Repeated late filing can also lead to permit revocation.
Register Before You Collect
You need a TOT Permit number from the city before collecting any tax. All vacation rentals and homeshares are required to hold one, along with a vacation rental registration certificate and a business license.1City of Palm Springs. Vacation Rental Transient Occupancy Tax Information Annual registration fees as of December 2025 are $1,046 for a vacation rental, $523 for a junior vacation rental, and $261 for a homeshare.5City of Palm Springs. Vacation Rentals
A vacation rental is a single-family dwelling rented for 28 days or fewer with the owner absent during the guest’s stay; a homeshare is a stay of 28 days or fewer in the owner’s home with the owner living on-site the whole time. If a homeshare host leaves or cannot respond to a complaint within 30 minutes, the property is treated as a vacation rental and must meet the stricter requirements that go with that category.6City of Palm Springs. Palm Springs Code 5.25 – Vacation Rentals
Records You Have to Keep
Keep records in the city for at least four years. The required documentation includes guest registration cards or folios showing the guest’s name and address, dates of occupancy, a nightly breakdown of charges, and the number of guests, along with a cash receipts journal and bank statements that tie back to lodging revenue.3City of Palm Springs. Palm Springs Code 3.24 – Transient Occupancy Tax The city’s tax administrator can request more at any time, and exemption certificates belong in the same file so you can prove any zero-tax stay.