The Orlando hotel tax totals 12.5% of the rental charge, made up of three separate taxes collected on any short-term stay in Orange County, Florida: a 6% state transient rental tax, a 0.5% county discretionary sales surtax, and a 6% local Tourist Development Tax that most people call the bed tax. Hotels, motels, and vacation rental operators are responsible for collecting all three from guests and sending each to the correct agency.
How the 12.5% Breaks Down
The state’s 6% transient rental tax is set under Section 212.03 of the Florida Statutes and applies to every short-term lodging transaction in the state.1The Florida Legislature. Florida Code 212.03 – Transient Rentals Tax; Rate, Procedure, Enforcement, Exemptions Orange County adds a 0.5% discretionary sales surtax on top of it, bringing the state-and-county sales tax portion to 6.5%.2Florida Department of Revenue. Discretionary Sales Surtax Information
The 6% Tourist Development Tax is the local piece, authorized under Florida’s Local Option Tourist Development Act and set by the Orange County Board of County Commissioners.3The Florida Legislature. Florida Code 125.0104 – Tourist Development Tax; Procedure for Levying; Authorized Uses; Referendum; Enforcement The county rate has stood at 6% since September 1, 2006.4Orange County Florida Comptroller. Frequently Asked Questions – Tourist Development Tax Added together, the three levies land at 12.5% of the total rental charge.
Which Stays Are Taxed
The tax applies to any living quarters rented for six months or less. That covers hotels, motels, bed and breakfasts, condominiums, timeshare units, single-family vacation homes, apartments, RV parks, and mobile home parks.4Orange County Florida Comptroller. Frequently Asked Questions – Tourist Development Tax Property type doesn’t matter; length of stay does. A seven-month lease falls outside the requirement, but a five-month booking is in.
Vacation rentals listed on Airbnb, VRBO, and similar platforms are treated the same as traditional hotels. The tax is calculated on the total rental charge, including cleaning fees passed on to the guest.
When Airbnb or VRBO Collects the Tax for You
Airbnb currently collects and remits the 6% Orange County Tourist Development Tax on behalf of hosts for reservations of 182 nights or shorter. If you list exclusively on Airbnb, the county TDT is handled at the platform level. Even then, the state transient rental tax and discretionary surtax may still be your responsibility to report through the Florida Department of Revenue, depending on the platform and listing arrangement, so verify what each platform actually remits before assuming you’re covered.
If you list on multiple platforms or take direct bookings, you remain personally responsible for collecting and remitting the TDT on any reservation the platform did not cover. The Comptroller’s office expects the full 6% regardless of how the booking came in.
Registering as an Operator
Orange County Comptroller
Before your first guest checks in, open a TDT account with the Orange County Comptroller’s office.5Orange County Comptroller, FL. Tourist Development Tax Download the Tourist Development Tax Registration Form from the Comptroller’s website and enter the property’s Parcel ID (from the Orange County Property Appraiser’s database), the legal business name, the rental address, and the date of your first short-term rental.6Orange County Comptroller. Tourist Development Tax Registration Form Every field needs to match official property records; a mismatched Parcel ID will hold up your account.
Florida Department of Revenue
You also need a separate registration with the Florida Department of Revenue for the state transient rental tax. Register each rental location through the state’s online system or by submitting a paper Florida Business Tax Application (Form DR-1).7Florida Department of Revenue. Florida Sales and Use Tax New hosts often assume the county registration handles everything. It doesn’t. The state and county are two different agencies collecting two different taxes.
Filing Returns and Paying
TDT returns are due on the first day of the month following the collection period. A return covering January rentals is due February 1, and it becomes delinquent if not postmarked or submitted by the 20th of that month.4Orange County Florida Comptroller. Frequently Asked Questions – Tourist Development Tax The window between the due date and the delinquency cutoff gives you some breathing room, but treating the 20th as your working deadline invites problems. One postal delay and you’re late.
File and pay online through the Comptroller’s TDT application at tdt.occompt.com, where you can create a login, submit returns by e-check, and manage your account.8Orange County Comptroller. Orange County, FL – Tourist Development Tax Paper returns mailed to the Comptroller are also accepted. Keep confirmation receipts either way.
State sales tax returns follow a separate schedule through the Department of Revenue. Most short-term rental operators file monthly, though the DOR may assign a different frequency based on volume. Paying the county TDT does not satisfy the state obligation, and paying the state does not satisfy the county.
Penalties for Late or Missed Payment
Missing the delinquency deadline triggers a penalty of 10% of the tax owed or $50, whichever is greater, plus interest at a variable rate that adjusts every January 1 and July 1.4Orange County Florida Comptroller. Frequently Asked Questions – Tourist Development Tax Those charges stack each month the filing remains open, and bounced payments carry a separate fee set by county ordinance.
The exposure isn’t only financial. Under Florida law, any operator who fails or refuses to collect the tax from guests commits a first-degree misdemeanor and is personally liable for the unpaid tax.3The Florida Legislature. Florida Code 125.0104 – Tourist Development Tax; Procedure for Levying; Authorized Uses; Referendum; Enforcement The unpaid tax also becomes a lien on the guest’s property, though the county pursues the operator in practice. Fraud cases are handled under the full extent of Florida law.
Federal Income Tax on Rental Earnings
Collecting the Orlando hotel tax handles your local compliance. Federal income tax on rental profits is separate. Report rental income and deductible expenses on Schedule E (Form 1040).9Internal Revenue Service. About Schedule E (Form 1040), Supplemental Income and Loss
One narrow exception: if you rent out your own home or vacation property for fewer than 15 days during the year, you don’t have to report the rental income to the IRS. You also can’t deduct rental expenses for those days.10Internal Revenue Service. Renting Residential and Vacation Property For Orlando homeowners who rent only during peak convention or theme-park weekends, that 14-day rule can be a real break.
p>Underreporting rental income can bring an accuracy-related penalty of 20% of the underpaid tax when the IRS treats the understatement as substantial, defined as the greater of 10% of the tax that should have been reported or $5,000.11Internal Revenue Service. Accuracy-Related Penalty