Virginia Short Term Rental Tax: The Complete 2026 Guide

Virginia Short Term Rental Tax Guide for 2026

Virginia short term rental hosts face a layered system: state sales tax, a local transient occupancy levy, and — in some localities — a short term rental property tax on gross proceeds. Whether you host in Virginia Beach, Richmond, or Northern Virginia, you must collect the right amounts from guests and file on time.

This guide covers everything a short term rental business owes in 2026, including filing deadlines, what Airbnb and VRBO collect for you, and how rates vary by locality. For zoning and permit rules, see our Virginia short term rental laws guide. Before investing, compare markets with our free STR market data.

Taxes That Apply to Short Term Rentals in Virginia

The total a guest pays typically runs 10% to 17% of the room charge depending on location. Here is what may apply to your rental property:

• State retail sales tax (5.3% to 6% depending on region)
• Local transient occupancy levy (typically 5% to 10%)
• Flat per-night room fees (select cities)
• Short term rental property tax on gross proceeds (up to 1.5%, where adopted)

Each is administered by a different office. Sales tax goes to the Virginia Department of Taxation; the occupancy levy and the gross proceeds tax go to the local Commissioner of the Revenue office. Every person engaged in the short term rental business must be registered with each applicable office before collecting anything from guests.

State Sales Tax on Accommodations

Virginia charges retail sales and use tax on transient accommodations, defined as lodging stays of fewer than 90 consecutive days. The state rate is 4.3% plus a mandatory 1% local portion, for a 5.3% base. Northern Virginia and Hampton Roads add 0.7%, bringing the combined rate to 6%.

It applies to the full amount guests pay, including nightly rates and mandatory cleaning or pet charges. You collect at booking and remit monthly, quarterly, or annually — the department assigns your filing frequency when you register.

Since October 2022, accommodations intermediaries like Airbnb and VRBO must collect and remit this sales tax on behalf of hosts. Owners handling direct bookings remain fully responsible themselves. Even when a platform collects, keep records of each transaction for audit purposes.

Local Transient Occupancy Tax

Nearly every city and county levies a transient occupancy levy on short term rentals, stacked on top of sales tax. Tax rates depend on where the property is located. Rates for popular markets:

• Virginia Beach: 9% lodging levy plus $2 per night (Sandbridge district: 10.5% plus $2)
• Norfolk: 9% plus $3 per bedroom per night
• Richmond: 8%
• Alexandria: 8.5%
• Fairfax County: 6%
• Arlington: 5.25%
• Loudoun County: 3%

Any person offering lodging for compensation must be registered with the local Commissioner of the Revenue. Reports and payment due dates fall on the 20th of each month for the prior month's rentals, and most offices accept returns by mail or online. Many a city requires a zero filing for months with no bookings — skipping it can trigger a statutory assessment. Late filers typically pay a 10% penalty plus 10% annual interest.

Platforms also collect and remit this occupancy levy under the 2022 law, but arrangements vary by city. Verify each quarter that your platform applies the correct local rate. A full-service Airbnb management company handles collection and filing for the owner's business.

Short Term Rental Property Tax on Gross Proceeds

Code of Virginia § 58.1-3510.6 lets any county, city, or town levy a short term rental tax on the receipts of qualifying businesses — separate from both sales and occupancy taxes. The cap is 1% of gross proceeds for general daily rental property businesses (§ 58.1-3510.4 B 1) and 1.5% for heavy equipment businesses (B 2).

"Gross proceeds" here means the total amount charged to each person for the rental, excluding sales tax already paid. It is collected from the lessee at the time of the rental and remitted quarterly or monthly depending on the city or county — for example, Richmond collects its Daily Rental Tax each quarter.

Under the code, "short-term rental property" means all tangible personal property held for rental and owned by a person engaged in the short term rental business — excluding trailers, motor vehicles, and other property registered with the Department of Motor Vehicles, Wildlife Resources (formerly Game and Inland Fisheries), or Aviation. A person engaged in the short term rental business is defined as one where not less than 80 percent of gross receipts of such business arose from transactions involving rental periods of 92 consecutive days or less, including extensions and renewals to the same person or a person affiliated with the lessee. For heavy equipment property, the threshold is 60 percent of gross rental receipts from transactions with rental periods of 270 days or less. This business levy mainly targets operations renting tangible personal property — tools, event supplies, and similar daily rental property — rather than lodging. Hosts who rent equipment or furnishings alongside lodging should confirm whether any portion applies. A locality may impose either this gross proceeds levy or the merchants' capital business personal property tax on daily rentals, but not both — daily rentals of durable medical equipment are exempt under the code.

What Airbnb and VRBO Collect

Under § 58.1-612.2, accommodations intermediaries must collect and remit the Virginia sales tax and the local occupancy levy for hosts. The 2022 legislation broadened the definition to cover virtually all booking platforms. When a platform collects, you claim a deduction on your own return to avoid double payment.

Any business renting through direct bookings or a manager that does not handle taxes bears full responsibility. Review platform reports each quarter and reconcile against your locality's rates — platforms sometimes lag on newly adopted local changes. Contact your Commissioner of the Revenue office about discrepancies before the deadline — each political subdivision sets its own rules, and the customer-facing rate a platform charges must match what your rental is subject to.

Registration and Filing

Before accepting a booking, every short term rental business should complete three steps:

• Get registered with the Virginia Department of Taxation for a sales tax certificate
• Register with the Commissioner of the Revenue office in each locality where your property is located
• Obtain any required city or county business license for your business

Occupancy returns are typically monthly with due dates on the 20th, filed online, in person, or by mail. The gross proceeds levy, where adopted, is usually filed each quarter, often by the last day of the month following quarter end. A person who fails to file on time faces penalties, back taxes, and interest — and localities can revoke a certificate of registration, shutting the operation down. Exempt organizations and government entities may qualify for relief from one or more of these levies; confirm exempt status with the taxing office before claiming it on a filing.

Income Tax Obligations

Virginia levies a state income tax on net rental income, reported on your state return alongside your federal filing. Federally, income from a rental property goes on Schedule E, or Schedule C if you provide substantial guest services.

A business owner who materially participates may qualify for the short term rental tax loophole, which lets real estate losses offset W-2 income. See our material participation guide for how to qualify. Work with a professional who understands both state and federal treatment of rental property.

How Virginia Compares

The burden is moderate to high depending on the market. Virginia Beach guests pay 15% to 16.5% plus a nightly fee — comparable to major tourism markets elsewhere. Richmond totals about 13.3% to 14%, in line with mid-Atlantic peers. Northern Virginia localities charge lower occupancy rates but come with stricter zoning. Compare structures in our Colorado, Washington, and Georgia guides.

Frequently Asked Questions

Does Airbnb collect everything for me?

Airbnb collects and remits sales tax and the local occupancy levy in most jurisdictions. You must still be registered with the state and your local office. The gross proceeds levy, where adopted, is not collected by platforms.

What total rate do guests pay?

Typically 10% to 17% of the room charge combining state, local, and per-night fees. Virginia Beach runs 15% to 16.5% plus $2 per night; Richmond about 13.3% to 14%.

Do I file for months with no bookings?

Most require a zero return even with no rentals. Skipping it can trigger a statutory assessment where the city estimates your liability.

What is the short term rental property tax?

A local-option levy of one percent (1.5% for heavy equipment) on gross rental receipts of a business engaged in daily rentals of tangible personal property, counting extensions and renewals to the same person or a person affiliated with the lessee. It mainly affects equipment operations, not pure lodging hosts — contact your local office for additional information if you rent equipment alongside lodging.

Are stays over 90 days taxable?

No. Transient accommodations are defined as stays under 90 consecutive days — longer than the 30-day cutoff most states use. Longer stays escape both the occupancy levy and sales tax, though some local ordinances use shorter thresholds.

Are cleaning fees taxable?

Yes. Mandatory cleaning, pet, and similar required charges are part of the taxable amount for both levies. Only truly optional charges a guest can decline may be excluded.

Get Compliant Before Your First Guest

Use Surge Score to evaluate properties with projected returns net of taxes and expenses. Ready to go deeper? Book a free intro call or call (888) 616-8149 to see how professional management keeps your short term rental business compliant while maximizing revenue.