Four kinds of tax touch every vacation home – and only one of them is paid by the guest

Taxes for Orlando short-term rental vacation home owners

By David Myers, Broker Associate · MyOrlandoVacationHome.com · Last updated October 2026

Every short-term rental (STR) stay in Florida owes state sales tax, a county surtax and the county tourist development tax, which the owner or manager collects from the guest. Booking platforms collect some of these taxes but not all, and in Osceola County owners file the tourist tax themselves. A vacation home does not qualify for the homestead exemption, and its assessed value resets to market value the year after you buy it. The furniture in a rental is taxed separately as tangible personal property, with a return due to the property appraiser each year. Florida has no personal income tax, but federal rules on personal use and short average stays shape what you can deduct.

Buyers focus on price, HOA fees and rental income. Taxes get less attention, and some surprise owners in the first year.

Here is how each tax works in Orange, Osceola and Polk counties.

What Taxes Do Guests Pay on an Orlando Vacation Rental?

State sales tax, a county surtax and the county tourist development tax, on every stay of six months or less.

These taxes are charged to the guest on top of the rent. The state sales tax and the county surtax are filed with the Florida Department of Revenue. The tourist development tax is set and collected by each county. Rates change, so check the official pages listed below.

Who Collects and Files the Tourist Tax?

It depends on the county and the booking platform – and in Osceola County, it is usually you or your manager.

Airbnb collects the state tax and surtax on Florida stays and, under agreements with the counties, the tourist tax in Orange and Polk. Confirm what Vrbo or any other platform remits before you assume it is covered. The Osceola County Tax Collector says it is not contracted with Airbnb, Vrbo or other platforms, so Osceola owners register with the Tax Collector and file the tourist tax themselves. Direct bookings, which many managers take, are never covered by a platform.

The tourist tax is handled by the Comptroller in Orange County and the Tax Collector in Osceola and Polk. See our Osceola, Orange and Polk county rules for the local details.

How Is a Vacation Home Taxed as Property?

As non-homestead property: no homestead exemption, a reset to market value after a sale, then a capped yearly increase.

The homestead exemption is only for a permanent residence, so an investment vacation home pays full property tax. Under Florida Statute 193.1554, non-homestead residential property is reassessed at market value as of January 1 after a change of ownership, and its assessed value can then rise no more than 10 percent a year for every tax except school taxes. A new home is first assessed at full value once it is substantially complete on January 1 – see new construction vs resale.

That reset matters when you buy. The seller's tax bill may reflect years of capped increases, so estimate your taxes from the purchase price and the local millage, not from the seller's bill. If an assessment looks too high, you can ask the property appraiser for an informal conference, petition the Value Adjustment Board within 25 days after the TRIM notice is mailed, or both.

Do You Pay Tax on the Furniture?

Yes – furnishings in a rental are tangible personal property, and the owner files a return each year.

Furniture, linens, dishes, electronics and portable appliances in a rental home are taxable as tangible personal property. The household goods exemption does not apply, because it is only for people living in the home as their permanent residence. Built-in items such as ranges and central air are taxed with the real estate instead.

The return (Form DR-405) is due to the county property appraiser by April 1. Filing on time makes you eligible for an exemption on part of the value, and owners below the exemption amount may qualify for a filing waiver after their first return. If you buy a home that is furnished, include the furniture in your first return.

How Does the IRS Treat a Short-Term Rental?

Florida has no personal income tax, but federal rules on personal use and short stays decide what you can deduct.

Rental income is reported on your federal return, and common rental expenses such as management fees, cleaning and maintenance, repairs, utilities, insurance, advertising, property taxes, mortgage interest and depreciation can be deducted. If you use the home personally for more than the greater of 14 days or 10 percent of the days it is rented at a fair price, the IRS treats it as a residence and limits your rental deductions to your rental income. If you rent it for fewer than 15 days in the year, you do not report the rent or deduct rental expenses.

Short stays bring another rule. When the average guest stay is seven days or less, the IRS does not treat the activity as a rental activity under the passive activity rules, which changes how losses are treated. Providing hotel-style services can also change how the IRS treats the rental. Depreciation, material participation and the right forms all depend on your situation, so plan them with a CPA who works with short-term rentals. Owners who live outside the US face different federal rules – see buying from the UK or Canada.

How Does Personal Use Affect Your Taxes?

Every night you stay counts toward the IRS personal-use limit, separate from the resort's own rule.

Depending on the resort, owners may use the home either up to 6 months a year or without limit. If the on-site rental program manages your unit, it may set a lower limit. Contact us for current terms. The resort's limit and the IRS limit are different tests – a stay the resort allows can still change how the IRS treats your deductions. Compare resorts by maximum owner usage.

Pros, Cons and Our Take

Pros

  • Florida has no personal income tax on rental profits.
  • The yearly cap limits how fast assessed value can rise after your first year.
  • Guests, not owners, pay the sales and tourist taxes on each stay.

Cons

  • No homestead exemption, and the assessment resets to market value after you buy.
  • Furniture is taxed separately and needs its own yearly return.
  • Osceola owners must file the tourist tax themselves, and missed filings bring penalties.

Our Take

Budget the property tax from the purchase price, not the seller's bill, and ask every manager you interview which taxes they file for you. Then sit down with a CPA before your first year ends – the personal-use and short-stay rules are where vacation home owners leave money on the table or get it wrong.

What Owners Should Know

  • Register for the county tourist tax before your first booking unless your manager or platform covers it in writing.
  • Calendar the April 1 tangible personal property return, and review your proposed tax notice (TRIM notice) each year.
  • Log every personal-use night, including nights family or friends stay without paying a fair rent.
  • Keep platform payout statements, manager reports and receipts together for your CPA.

See our overview of Orlando short-term rental laws and our guide to financing an Orlando vacation home.

Official Sources

Buying or selling an Orlando vacation home? Call/Text David Myers at 407.801.3286 or send us a message.

Frequently Asked Questions

What taxes do I collect on an Orlando vacation rental?

Florida sales tax, the county surtax and the county tourist development tax on every stay of six months or less. Platforms collect some of these; you or your manager file the rest.

Does Airbnb pay the tourist tax in Osceola County?

No. The Osceola County Tax Collector says it is not contracted with Airbnb, Vrbo or other platforms, so owners or their managers file it.

Can I get a homestead exemption on a vacation rental?

No. The homestead exemption is only for your permanent residence. A vacation rental is taxed as non-homestead property.

Do I pay property tax on the furniture in my rental?

Yes. Furnishings in a rental are tangible personal property. File a return with the county property appraiser by April 1 each year.

How many days can I use my vacation rental before it affects my taxes?

Under IRS rules, personal use of more than the greater of 14 days or 10 percent of the days rented at a fair price limits your rental deductions. Ask a CPA how it applies to you.

David Myers is a licensed Florida real estate broker, working as a broker associate with Ziro Realty, and is not an attorney or tax professional. This article is general information, not legal or tax advice. Laws and local rules change; confirm current requirements with the county, the DBPR and a Florida attorney or tax professional.