Las Vegas Transient Occupancy Tax (TOT) for Short-Term Rentals: Complete Guide

Understanding the 13% TOT Rate

Clark County imposes a 13% transient occupancy tax on all lodging stays of less than 30 consecutive days. This applies to hotels, motels, and short-term rental properties equally. If you're renting your property for periods under 30 days, you're collecting and remitting TOT on every booking.

The 13% rate is a combined rate that includes multiple tax components. The base Clark County transient lodging tax is 12%, and incorporated cities within Clark County add their own portions that bring the total to 13% in most jurisdictions. The exact breakdown varies slightly depending on whether your property is in the City of Las Vegas, Henderson, North Las Vegas, or unincorporated county areas, but 13% is the standard rate across the valley.

TOT is calculated on the total nightly rate charged to guests, including any cleaning fees, service fees you charge directly, or other charges related to the stay. If you charge $200 per night plus a $100 cleaning fee, TOT is calculated on $300 total, not just the $200 nightly rate.

The tax is collected from guests and remitted to the county. You're not paying this tax out of your revenue—you're collecting it from guests and passing it through to the government. However, you're legally responsible for ensuring proper collection and timely remittance, which creates liability if you don't handle it correctly.

Where TOT Revenue Goes

The 13% TOT rate funds multiple county and city functions related to tourism, convention facilities, and general government operations. A portion supports the Las Vegas Convention and Visitors Authority (LVCVA) which markets Las Vegas as a tourist destination. Other portions fund county general operations, capital projects, and debt service on convention and tourism infrastructure.

As an STR owner, you benefit from LVCVA marketing that brings tourists to Las Vegas—these visitors fill your property. TOT is how you contribute to the ecosystem that makes Las Vegas a viable vacation rental market. Hotels pay the same tax, and STRs operating without proper TOT compliance gain unfair competitive advantages over compliant operators.

Registration Process with Clark County

Every STR owner must register with Clark County Tax to collect and remit TOT. Registration is separate from your business license and STR permit—it's an additional requirement specifically for tax purposes.

Initial Registration Steps

Navigate to the Clark County Department of Tax website and locate the business license and tax registration section. You'll need to create an account and complete the transient lodging tax registration application.

The registration application asks for your business information, property address, estimated monthly revenue, and banking information for tax payments. You'll also indicate whether you're operating as a sole proprietor, LLC, corporation, or other business structure.

Complete the registration at least 2-3 weeks before your first guest booking. Registration can take time to process, and you cannot legally operate without a TOT account number. Some jurisdictions require you to display your TOT account number in your property alongside your business license.

Getting Your TOT Account Number

Once your registration is processed, you'll receive a TOT account number. This number identifies your property in the tax system and appears on all your tax returns and correspondence with the county tax department.

Keep your TOT account number with your other important business documents. You'll need it for filing returns, making payments, and any communication with the tax department. If you work with professional management, provide your account number so they can file returns on your behalf.

Registration Fees and Requirements

TOT registration itself typically has no fee, though this can change. The registration creates your tax account and establishes your obligation to file returns and remit collected taxes.

Some jurisdictions require you to post a bond or deposit if you have no filing history or if you're considered high-risk for non-compliance. These bonds protect the county against potential unpaid taxes. Most small STR owners don't face bond requirements, but larger operations or owners with multiple properties might.

Monthly Filing Requirements and Deadlines

TOT returns must be filed monthly, even if you had no bookings or collected no tax during that month. Missing returns trigger penalties even when no tax is due.

Filing Deadline Structure

Returns are due by the 20th of the month following the reporting period. If you had bookings in January, your January TOT return is due by February 20th. If you had bookings in February, your February return is due by March 20th.

The 20th deadline is firm. If the 20th falls on a weekend or holiday, the deadline moves to the next business day, but don't count on this—file early to avoid any confusion about deadline extensions.

Late returns incur automatic penalties of 10% of the tax due plus interest that accrues daily. A return that's one day late faces the same 10% penalty as a return that's 30 days late. There's no grace period or small-delay forgiveness—late is late.

What You're Reporting

Each monthly return reports your total bookings for that month, the total rental revenue collected, the total TOT collected, and the amount you're remitting. Even if Airbnb or Vrbo collected and remitted TOT on your behalf, you still need to report these bookings and show the tax was handled.

The return asks for breakdown information including number of room nights (or property nights for whole-home rentals), average daily rate, total revenue, and total tax collected. Maintain detailed records that let you accurately complete these fields for every reporting period.

Zero Returns for Months Without Bookings

If you had no bookings in a given month, you still file a return showing zero activity. Zero returns maintain your account in good standing and prevent the county from flagging your account for non-filing.

Some owners mistakenly believe they only file when they have activity to report. This creates compliance problems when the county sends non-filing notices for months when you simply didn't have bookings. File every month regardless of activity level.

Payment Methods

Most jurisdictions require electronic payment through their online tax portal. You can typically pay via ACH bank transfer or credit card. ACH is usually free while credit card payments might incur processing fees.

Set up payment methods in your account before your first return is due. This prevents last-minute scrambling to figure out payment systems when deadlines are approaching.

Penalties for Non-Compliance

TOT enforcement has increased significantly in Las Vegas over the past several years. The county actively pursues STR owners who fail to register, file returns, or remit collected taxes.

Penalty Structure

The standard penalty for late filing or late payment is 10% of the tax due. If you owe $500 in TOT for January and file or pay late, you immediately owe an additional $50 penalty.

Interest accrues on unpaid taxes and penalties at rates that adjust quarterly based on market rates. Interest typically runs 0.5-1% per month, compounding over time. Small delays turn into significant added costs as interest accumulates.

For returns filed more than 30 days late, additional penalties can apply. The county can assess penalties up to 25% of the tax due for particularly egregious late filing or evidence of intentional non-compliance.

Non-Filing Enforcement

If you fail to file returns, the county sends non-filing notices demanding immediate filing and payment of estimated taxes. The county estimates what you likely owe based on your property type, location, and typical market rates. These estimates are usually higher than what you actually owe, and you're responsible for proving your actual liability through filing accurate returns.

Continued non-filing can result in revocation of your business license and STR permit. The county can also place liens on your property for unpaid taxes, penalties, and interest. These liens take priority over most other debts and can ultimately lead to forced sale of your property to satisfy tax obligations.

Criminal Penalties for Tax Evasion

In cases of intentional tax evasion—collecting TOT from guests but failing to remit it to the county—criminal charges can apply. While most non-compliance cases are civil matters handled through penalties and interest, deliberate fraud crosses into criminal territory.

We've never seen an STR owner face criminal charges for simple mistakes or short-term non-compliance. But owners who operate for years without ever registering or filing, or who collect TOT from guests and spend it instead of remitting it, create situations where criminal prosecution becomes possible.

Audit Risk

The county conducts periodic audits of STR operators to verify proper TOT compliance. Audits typically cover 3-4 years of operations and involve detailed review of all bookings, revenue, and tax collections.

During audits, you need to provide booking records, financial statements, bank deposits, platform statements, and any other documentation showing your complete rental history. If the audit reveals underpayment, you owe back taxes plus penalties and interest on all underpaid amounts.

Maintain meticulous records of every booking, every payment received, and every TOT remittance made. These records protect you during audits and make the audit process much smoother. Our guide on handling guest inquiries and bookings emphasizes documentation practices that also support tax compliance.

How Airbnb and Vrbo Handle TOT Collection

Most bookings for Las Vegas STRs come through platforms like Airbnb and Vrbo, which have systems for collecting and remitting TOT. Understanding how these systems work prevents double-collection mistakes and ensures proper compliance.

Platform-Collected TOT

Airbnb and Vrbo have agreements with Clark County to collect and remit TOT directly for Las Vegas properties. When guests book through these platforms, the platform adds 13% TOT to the booking cost, collects it from the guest, and remits it to the county on your behalf.

This is convenient because you don't have to manually collect TOT from guests or calculate remittance amounts. The platform handles the entire collection and remittance process automatically.

However, platform collection doesn't eliminate your filing obligation. You still need to file monthly returns showing your bookings and TOT collected, even though the platform already remitted the tax. Your returns show the platform collected and remitted on your behalf, but you're still required to report the activity.

Verifying Platform Collection

Check your booking platform settings to confirm TOT collection is enabled for Las Vegas. Most platforms enable this automatically when they detect your property is in Clark County, but verify manually to be certain.

Review your payout statements from platforms to confirm TOT was collected and withheld before funds were sent to you. The payout should show the nightly rate, the cleaning fee, and other charges separately from the TOT amount. You should receive the rental revenue while the platform retains the TOT for remittance.

If you notice payouts that seem to include TOT (payouts that are 13% higher than expected), contact platform support immediately. This might indicate TOT collection isn't properly configured and you're receiving tax money you'll need to remit yourself.

Direct Bookings and Host-Remitted TOT

For bookings that come directly to you outside of platforms—through your own website, referrals, or repeat guests—you're responsible for collecting TOT from guests and remitting it to the county.

Add 13% to whatever rate you quote guests for direct bookings. Make it clear in your booking confirmation that this 13% is transient occupancy tax that will be collected and remitted to Clark County. This transparency prevents guests from feeling surprised by the added cost.

Collect TOT at the time of booking or upon guest arrival. Don't let guests check out without paying TOT—you're liable for remitting it regardless of whether guests actually paid you. If you let a guest skip paying TOT, you're still responsible for remitting that amount to the county from your own funds.

Platform vs. Host Remittance on Returns

Your monthly TOT return separates platform-collected taxes from host-collected taxes. There are different reporting sections for each type. Platform-collected bookings show in the section indicating the platform already remitted, while direct bookings show in the section where you're remitting payment with your return.

This separation lets the county reconcile what platforms remitted against what individual owners report. Discrepancies trigger reviews and potential audits, so accuracy in distinguishing platform bookings from direct bookings is important.

Multiple Platform Coordination

If you list on multiple platforms—Airbnb, Vrbo, Booking.com, and others—verify that each platform is properly collecting and remitting TOT. Don't assume consistency across platforms. Some platforms have tax collection agreements with Clark County while others might not.

For platforms that don't automatically collect TOT, you need to add the 13% manually to guest charges and remit it yourself. Your monthly return will show a mix of platform-collected bookings and host-remitted bookings depending on which platforms were used.

Tax Deduction Strategies for STR Owners

While you must collect and remit TOT, you can implement tax strategies that reduce your overall tax burden through proper deduction claiming.

Understanding the Tax Deduction Landscape

TOT itself is not deductible as a business expense because it's not your money—it's tax collected from guests and passed through to the government. However, nearly every other expense related to your STR operations is deductible against your rental income.

Deductible expenses include mortgage interest, property taxes, insurance, utilities, maintenance, repairs, cleaning, supplies, platform fees, professional management fees, and depreciation. Properly tracking and deducting these expenses significantly reduces your taxable income from STR operations.

Working with Tax Professionals

STR taxation is complex and intersects with various tax code provisions around rental properties, business operations, and passive income. Working with a CPA or tax professional who understands short-term rental taxation helps you maximize legitimate deductions while maintaining compliance.

Tax professionals cost $500-2,000 annually depending on your situation's complexity, but they typically identify deductions that save more than their fees. They also prevent costly mistakes that could trigger IRS audits or result in underpayment penalties.

Tracking Deductible Expenses

Maintain separate bank accounts and credit cards for your STR operations. This creates clean separation between personal and business expenses, making tax preparation much simpler and cleaner.

Use accounting software or spreadsheets to track every expense related to your property. Categories should include: mortgage interest, property taxes, insurance, utilities, repairs and maintenance, cleaning and laundry, supplies and amenities, platform fees and credit card processing, professional services (management, legal, accounting), advertising and marketing, and depreciation.

Save receipts and documentation for all expenses. Digital receipt tracking through apps like Expensify or even just photographing receipts with your phone creates the documentation you need to support deductions if questioned.

Depreciation Benefits

Residential rental property can be depreciated over 27.5 years, providing significant annual deductions that reduce taxable income without requiring cash outflows. Furniture, appliances, and other personal property depreciate over shorter periods (5-7 years typically), accelerating deductions.

Cost segregation studies can identify property components that qualify for accelerated depreciation, increasing early-year deductions. These studies cost $3,000-8,000 but can generate deductions worth significantly more than the study cost for higher-value properties.

Depreciation is complex, and mistakes create future tax problems when you sell the property. Work with tax professionals to properly calculate and claim depreciation deductions.

Home Office Deduction Considerations

If you use space in your home exclusively for managing your STR business, you might qualify for home office deductions. This applies to a dedicated office space used for booking management, guest communication, marketing, and other administrative tasks.

Home office deductions are proportional to the space used relative to your total home. If your office is 150 square feet in a 1,500 square foot home, you can deduct 10% of relevant home expenses as business costs.

Be cautious with home office deductions if your STR property is also your primary residence where you're renting rooms while living on-site. The rules get complicated when you're both living in and renting from the same property. Consult tax professionals before claiming home office deductions in these situations.

Management Company Handling of TOT Remittance

Professional STR management companies typically handle TOT compliance as part of their services. Understanding what management companies do and what remains your responsibility helps you evaluate management options and maintain proper oversight.

What Management Companies Typically Handle

Full-service STR management companies like 5 Star STR handle all TOT registration, collection, filing, and remittance on behalf of property owners. We register properties for TOT accounts, track all bookings and revenue, calculate monthly TOT obligations, file returns by required deadlines, and remit payments to the county.

Management companies maintain detailed financial records that support tax filings and provide documentation for audits. We track platform-collected TOT separately from directly-collected TOT, reconcile monthly bookings against platform statements, and ensure accurate reporting on all returns.

Owner statements from management companies show TOT collected and remitted separately from rental revenue and management fees. This transparency lets you verify proper handling and provides records you need for your own tax filings.

Owner Responsibilities Even with Management

While management companies handle the mechanical aspects of TOT compliance, owners remain ultimately liable for proper tax payment. If your management company fails to file returns or remit taxes, the county comes after you—the property owner—for unpaid amounts plus penalties and interest.

Choose management companies with proven track records of tax compliance. Ask about their TOT handling procedures, whether they maintain errors and omissions insurance, and what happens if they make mistakes that result in penalties or interest charges to you.

Review your monthly owner statements to verify TOT is being properly handled. The statements should clearly show total bookings, total revenue, TOT collected, and TOT remitted. If these numbers seem off or you don't see clear TOT accounting, ask questions immediately.

Management Fee Implications

Management fees are typically calculated on rental revenue before TOT. If your gross booking was $1,000 plus $130 TOT, and your management company charges 20%, their fee is $200 (20% of $1,000), not $226 (20% of $1,130). TOT flows through to the county and isn't part of the revenue split between owner and management company.

Verify this structure in your management agreement. Some companies might try to calculate fees on gross amounts including TOT, which inflates their compensation unfairly. Standard industry practice is to calculate management fees on net revenue excluding tax collections.

Transitioning Management Companies

If you switch management companies, coordinate TOT account handling carefully. Determine which company files the return for months that span the transition, who remits TOT collected during the transition period, and how records transfer between companies.

Notify the county tax department about management company changes so they update contact information for your account. This ensures tax notices and correspondence reach the correct people and prevents communication gaps that could lead to missed deadlines.

At 5 Star STR, we handle TOT compliance for all the properties we manage as a standard part of our service. We've maintained perfect tax compliance records for over a decade because we understand how critical proper tax handling is for protecting our clients' licenses and investments. Our systems track every booking, calculate TOT obligations accurately, and file returns on time every month without exception.

If you're managing your own STR and finding TOT compliance overwhelming, or if your current management company's tax handling makes you nervous, talk to us about professional management that includes bulletproof tax compliance. Getting TOT wrong can cost you your license—getting it right requires systems, experience, and constant attention to changing requirements.

Bottom TLDR: Las Vegas transient occupancy tax for short-term rentals requires property owners to register with Clark County Tax, collect 13% TOT on all stays under 30 days, file monthly returns by the 20th of the following month regardless of booking activity, and remit collected taxes with 10% penalties plus interest for late compliance. While Airbnb and Vrbo collect and remit TOT automatically for platform bookings, owners must still file monthly returns reporting all activity and handle direct booking collections themselves. Professional management companies like 5 Star STR handle complete TOT compliance including registration, filing, and remittance while maintaining detailed records that support tax deductions and audit protection.