Thinking about turning a Whitesboro home or cabin into a short-term rental? Getting your taxes and setup right from day one can save you headaches and money. You want clear answers on what you owe, who you pay, and what to check locally before you list. In this guide, you’ll learn which taxes typically apply in Texas, how to confirm Whitesboro and Grayson County rules, and a simple checklist to get your STR launch-ready. Let’s dive in.
What taxes apply to STRs in Whitesboro
State hotel occupancy tax: 6%
Texas treats short-term rentals like hotels for hotel occupancy tax. The state rate is 6% on stays of 29 nights or fewer, and the Texas Comptroller administers registration, filing, and penalties. You can review filing rules and due dates on the Texas Comptroller hotel tax page.
Local hotel occupancy taxes: verify locally
Cities, some counties, and special districts can add their own hotel occupancy tax on top of the state 6%. During this research, a clear Whitesboro municipal HOT page was not found. You should confirm directly with City Hall whether a local HOT exists, the rate, and how to remit. The Comptroller also explains local HOT authority and reporting on its local hotel tax overview.
Platform collection vs your responsibility
Many booking platforms collect and remit the state 6% for you, but coverage of local taxes varies by platform and location. Always check your host dashboard and payout statements to see which taxes were collected for each booking, and keep those records. The Comptroller’s HOT FAQ outlines how marketplace collection works, and Airbnb explains its practices in this host help article.
What receipts are taxable in Texas
Your taxable gross receipts usually include the nightly rate and most mandatory fees paid by guests. In Texas, items like cleaning fees, pet fees, and some cancellation fees are commonly treated as taxable for hotel occupancy tax. Review practical examples in the Texas STR tax guide, then confirm your specific setup with the Comptroller and any local office.
Federal income tax basics
You must report rental income to the IRS. Most STRs without substantial services are reported on Schedule E, while STRs with hotel-like services may be reported on Schedule C. Keep good records of income, expenses, and personal use. For details, see IRS Publication 527.
Property tax in Grayson County
Short-term rental activity does not directly change how ad valorem property tax works in Texas. Your property is still appraised by the Grayson Central Appraisal District, and taxes are billed by the county tax office. You can check appraisal and contact info at Grayson CAD and payment details at the Grayson County Tax Office.
Local checks in Whitesboro and Grayson County
Confirm city and county requirements
Start with Whitesboro City Hall to ask about any local hotel occupancy tax, STR registration, inspections, or permit rules. Request the ordinance text or written confirmation of current requirements. You can reach Whitesboro City Hall at (903) 564-3311 or via the city’s contact page. For property tax details or county payments, contact the Grayson County Tax Office and Grayson CAD.
If your property sits outside city limits
If the rental is in unincorporated Grayson County or a nearby city, you must follow that jurisdiction’s rules. Larger nearby cities sometimes publish their own HOT rates and STR permits on city sites, so always verify where your property lies and follow that jurisdiction’s process.
HOA and deed restrictions
If your property is in an HOA, review the covenants for STR restrictions. HOA rules can prohibit or limit STRs even when a city allows them. Ask for the policy in writing so you can follow it and avoid fines.
Step-by-step host checklist
Before you list
- Identify your exact jurisdiction and confirm rules with Whitesboro City Hall and Grayson County offices. Get any ordinance or permit requirements in writing from the city’s contact page.
- Ask if a local hotel occupancy tax exists, the local rate, and where to file. The state baseline is 6% per the Texas Comptroller.
- Review HOA documents or deed restrictions for STR limits or bans.
- Decide if you will accept direct bookings. If you will, you may need to register for a state HOT account with the Comptroller.
- If you use marketplaces, confirm in your dashboard which taxes the platform collects and save those confirmations.
Set up taxes and filings
- State HOT: collect the 6% on any booking where the platform did not collect it, then remit to the Comptroller per your filing schedule. See the HOT overview.
- Local HOT: if Whitesboro or Grayson County has a local tax, follow their filing schedule and remit locally. Marketplace collection of local HOT varies, so verify per booking. Review local HOT authority on the Comptroller’s overview.
- Federal reporting: track every booking and expense. Use IRS Publication 527 to decide whether your activity fits Schedule E or Schedule C.
Operations and safety readiness
- Insurance: obtain STR-friendly coverage and consider umbrella liability protection. Many standard homeowner policies exclude STR use.
- Safety: install smoke and CO alarms, place fire extinguishers, label exits, and post house rules and emergency contacts. Keep the property address visible for responders.
- Local contact: designate a 24/7 local contact to handle issues quickly, even if not required.
- Neighborhood relations: set quiet hours, clear parking instructions, and occupancy limits consistent with local guidance.
Pricing, fees, and tax calculation
- Make fees transparent. Include cleaning and pet fees when calculating HOT, since these are commonly taxable in Texas. See examples in the Texas STR tax guide.
- Reconcile platform tax lines with your records for each booking so you can prove what was collected and remitted.
Recordkeeping and audit readiness
- Keep detailed booking logs, fee breakdowns, tax collected, platform statements, and bank deposits. Retain records for several years.
- File returns even if no tax is due for a period, if your jurisdiction requires a zero return. The Comptroller explains filing and penalties on its HOT page.
If you receive a tax inquiry
- Be ready to show bookings, payouts, tax collected, and remittances. If a marketplace collected on your behalf, keep the platform’s proof for each booking. The Comptroller’s FAQ explains documentation expectations.
Next steps and local contacts
- Whitesboro City Hall: (903) 564-3311, 111 W Main St, Whitesboro, TX 76273. Start with the city’s contact page to confirm local HOT and any STR permits.
- Grayson Central Appraisal District: questions about appraisal and valuations at Grayson CAD.
- Grayson County Tax Office: county tax payments and contact details at the county tax site.
- Texas Comptroller: registration, filing, and rules at the HOT overview and HOT FAQ. Definitions appear in Texas Tax Code Chapter 156.
When you are ready to run the numbers, set your calendar, and price for seasonality in Texoma, lean on a local team that understands both neighborhoods and investment strategy. For hands-on guidance and local insights around Whitesboro and the broader Texoma market, connect with Texas Life Real Estate LLC.
FAQs
Do Whitesboro short-term rentals owe state hotel occupancy tax?
- Yes. Texas imposes a 6% state hotel occupancy tax on STR stays of 29 nights or fewer, administered by the Texas Comptroller. See the HOT overview.
If Airbnb collects tax, do I still have to file anything?
- Maybe. Some platforms collect the state 6%, but local HOT may still be your responsibility and direct bookings are always yours. Verify in platform statements and see the Comptroller’s HOT FAQ.
Are cleaning and pet fees taxable in Texas STRs?
- Commonly yes. These fees are often counted in taxable receipts for hotel occupancy tax. Review examples in the Texas STR tax guide and confirm with the Comptroller.
How do I report STR income to the IRS?
- Most hosts use Schedule E unless they provide substantial hotel-like services, which can shift reporting to Schedule C. Details are in IRS Publication 527.
Who do I call to confirm a Whitesboro local hotel tax or permit?
- Start with Whitesboro City Hall at (903) 564-3311 or the city’s contact page, then check the Grayson County Tax Office and Grayson CAD for county and property tax questions.
