Hotel Tax in California: Complete Guide 2026
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Hotel Tax in California: Complete Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
California imposes a transient occupancy tax (TOT) on short-term lodging stays, but unlike most states, the TOT is set and collected at the local level rather than the state level. Each of California’s ~482 incorporated cities and ~58 counties establishes its own TOT rate, resulting in a wide range from approximately ~6% in smaller communities to ~15.5% in Anaheim (home of Disneyland). California does not apply its state sales tax to hotel room charges, which distinguishes it from many other states. Instead, the TOT functions as the primary lodging tax. Combined with tourism assessment districts in some areas, total hotel tax burdens in California’s major destinations typically range from approximately ~10% to ~15.5%.
California Transient Occupancy Tax Rates by City (2026)
| City | TOT Rate | Tourism/Assessment Districts | Total Hotel Tax |
|---|---|---|---|
| Anaheim | ~15.5% | Included | ~15.5% |
| San Francisco | ~14% | ~1%—~2.25% assessment | ~14%—~16.25% |
| Los Angeles | ~14% | ~1.5% TMD assessment | ~15.5% |
| San Diego | ~10.5% | ~2% TMD assessment | ~12.5% |
| Santa Monica | ~14% | ~1.5% assessment | ~15.5% |
| Palm Springs | ~13.5% | None | ~13.5% |
| Sacramento | ~12% | ~1% TMD assessment | ~13% |
| San Jose | ~12% | None | ~12% |
| Oakland | ~14% | None | ~14% |
| Long Beach | ~13% | ~1% assessment | ~14% |
| Monterey | ~10% | None | ~10% |
Tax on a ~$250/Night Room in Major Cities
| City | Total Tax Rate | Tax Amount | Total Nightly Cost |
|---|---|---|---|
| Los Angeles | ~15.5% | ~$38.75 | ~$288.75 |
| San Francisco | ~14%—~16.25% | ||
| San Diego | ~12.5% | ~$31.25 | ~$281.25 |
| Anaheim | ~15.5% | ~$38.75 | ~$288.75 |
| Sacramento | ~13% | ~$32.50 | ~$282.50 |
How California Hotel Tax Works
Transient Occupancy Tax (TOT)
California Revenue and Taxation Code Section 7280 authorizes cities and counties to levy a TOT on the privilege of occupying a room in a hotel, motel, inn, tourist home, or similar establishment for ~30 consecutive days or less. Each jurisdiction sets its own rate through local ordinance or ballot measure, and the revenue stays with the collecting jurisdiction. There is no state-level TOT or state sales tax on lodging. Occupancies exceeding ~30 consecutive days are generally exempt.
Tourism Marketing Districts (TMD) and Business Improvement Districts (BID)
Many California cities have established tourism marketing districts that levy additional assessments on lodging. These assessments, typically approximately ~1% to ~2.5%, are paid by hotel operators to fund destination marketing, convention attraction, and tourism infrastructure. TMD assessments are technically not taxes but special assessments approved by the affected hotel operators through a petition process. However, they function like additional hotel taxes from the guest’s perspective, as operators pass them through in the room rate.
Short-Term Rental Compliance
California’s major cities require short-term rental hosts to register for a TOT certificate and collect and remit the tax. Los Angeles, San Francisco, and San Diego all mandate TOT collection for stays of ~30 days or less. Airbnb has voluntary collection agreements with many California jurisdictions and automatically collects and remits TOT in those areas. However, hosts in jurisdictions without platform agreements remain responsible for collecting and remitting TOT directly. San Francisco’s short-term rental ordinance also requires hosts to carry approximately ~$500,000 in liability insurance and caps rentals at ~90 nights per year for unhosted stays.
Exemptions
Government employees traveling on official business may be exempt from TOT in some jurisdictions, though policies vary by city. Stays exceeding approximately ~30 consecutive days are typically exempt. Some California cities exempt certain nonprofit organizations or events from TOT, but these exemptions are locally determined and not standardized.
Comparison to Other Major State Hotel Tax Structures
| State | Tax Structure | Typical Total Rate |
|---|---|---|
| California | Local TOT only (no state sales tax on lodging) | ~6%—~15.5% |
| New York | State sales + local sales + occupancy tax | ~11%—~14.75% |
| Florida | State sales + county surtax + TDT | ~7%—~13.5% |
| Texas | State hotel tax + local hotel tax | ~13%—~17% |
| Nevada | State + county tax + surcharges | ~12%—~13.38% |
| Hawaii | TAT + GET | ~10.25%—~13% |
California’s structure is unique in that lodging taxes are entirely local. This means rates vary dramatically across the state and can be changed by local ballot measure.
Tips for Travelers and Hotel Operators
- Check the TOT rate for your specific destination before booking. Rates vary from approximately ~6% in some smaller cities to ~15.5% in Anaheim, a difference of nearly ~$25 per night on a ~$250 room.
- Ask about TMD assessments. Tourism marketing district assessments are often not displayed separately in rate quotes but are included in the final bill. Total costs in Los Angeles and San Francisco can exceed approximately ~15%.
- Extended stays save on taxes. Stays exceeding approximately ~30 consecutive days are exempt from TOT in most jurisdictions, making extended-stay hotels or monthly rentals significantly cheaper on a per-night basis.
- Short-term rental hosts: register for a TOT certificate. Operating without registration carries penalties of approximately ~25% to ~100% of the tax owed in many California cities, plus back taxes and interest.
- Operators: file returns per your city’s schedule. Filing frequency varies by jurisdiction — monthly, quarterly, or annually depending on the city and the amount of tax collected.
- Track local ballot measures. TOT increases in California often require voter approval, and changes can take effect mid-year. Monitor local election results for rate changes.
- Keep records for at least approximately ~4 years. California’s statute of limitations for TOT audits is generally ~3 to ~4 years from the filing date.
Key Takeaways
- California imposes transient occupancy tax at the local level, with rates ranging from approximately ~6% to ~15.5%
- There is no state sales tax on hotel room charges in California, making TOT the sole lodging tax
- Tourism marketing district assessments can add approximately ~1% to ~2.5% on top of TOT in major cities
- Stays exceeding ~30 consecutive days are generally exempt from TOT
- Short-term rental hosts must register for TOT certificates and collect the tax, with platforms like Airbnb handling collection in many jurisdictions
- Total hotel tax burdens in Los Angeles, San Francisco, and Anaheim can exceed approximately ~15%
Next Steps
- See the full California tax picture at Taxes in California: State Tax Guide 2026
- Explore capital gains tax in the state at Capital Gains Tax in California 2026
- Compare state tax burdens at State Income Tax Rates Comparison 2026
- Calculate your federal bracket with the Tax Bracket Calculator 2026
- Get local help: Find a CPA Near You