Occupancy tax collection and remittance by Airbnb in Massachusetts
Registration information
Regulations in Massachusetts
Hosts in Massachusetts are now required to register their listings with the Massachusetts Department of Revenue. Listings that are not registered will be blocked from hosting short-term stays.
When guests book with you, they will automatically be charged occupancy taxes, which Airbnb will collect and remit to the state on your behalf. You do not need to file any tax returns for transactions completed through the Airbnb platform. For any rental transactions completed outside of Airbnb's platform, you will need to file returns.
Registration and compliance
To comply, hosts in Massachusetts need to register each of their listings with the Massachusetts Department of Revenue and add the certificate number to their listing page. Registration is required.
It’s important to note that this is a state-wide requirement. If you host in Boston, you’ll need to complete both the Boston registration requirements and the Massachusetts Department of Revenue requirements in order to comply.
Registering with the Massachusetts Department of Revenue
Registration is free of cost and only takes a few minutes–you can complete the entire process online.
What you'll need
- Social security number
- Your personal tax returns from one of the past three years–you won’t need to upload these, you’ll just need to add the tax return amount to verify your ID
How to register
Step 1: Create a profile on MassTaxConnect as an operator if you own your listings or if you manage listings for others. You’ll receive a registration number by email once your application has been reviewed. This video tutorial walks you through the process step-by-step.
Step 2: Update your listing with your MassTaxConnect registration number to complete the registration process.
Exemptions
Registration is required for most listing types. If you think your listing may be exempt, you can check the state’s list of exemption reasons to learn more.
For additional questions about the registration process, visit the Department of Revenue’s FAQ page.
Occupancy tax information
Guests who book Airbnb listings that are located in the State of Massachusetts will pay the following taxes as part of their reservation:
- State Excise Tax: 5.7% of the listing price including any cleaning fees and guest fees, for reservations 30 nights and shorter for Short Term Rentals and reservations 89 nights and shorter for professional listings. For detailed information, visit the Massachusetts Room Occupancy Excise Tax website.
- Local Option Excise Tax: 0-6.5% of the listing price including any cleaning fees and guest fees, for reservations 30 nights and shorter for Short Term Rentals and reservations 89 nights and shorter for professional listings. For detailed information, visit the Massachusetts Room Occupancy Excise Tax website.
- Cape Cod and Islands Water Protection Fund Excise Tax: 2.75% of the listing price including any cleaning fees and guest fees, for reservations 30 nights and shorter for Short Term Rentals and reservations 89 nights and shorter for professional listings. This tax currently only applies to reservations in certain locations. For detailed information, visit the Massachusetts Room Occupancy Excise Tax website.
- Convention Center Finance Fee: 2.75% of the listing price including any cleaning fees and guest fees, for reservations 30 nights and shorter for Short Term Rentals and reservations 89 nights and shorter for professional listings. This tax currently only applies to reservations in certain locations. For detailed information, visit the Massachusetts Room Occupancy Excise Tax website.