Florida Airbnb and Short-Term Rental Taxes: What Property Owners Need to Know in 2027

Owning a short-term rental property in South Florida can generate significant income, particularly in popular destinations such as Fort Lauderdale, Miami Beach, Hollywood, and Pompano Beach.

However, vacation rental owners face tax obligations that can be more complicated than those associated with traditional long-term residential properties.

Understanding Florida's rental tax rules is essential for avoiding penalties and managing profitability.

Are Airbnb and vacation rentals taxable in Florida?

Yes. Florida generally imposes a 6% state sales tax on qualifying short-term accommodations rented for six months or less.

Additional county discretionary sales surtaxes and local tourist development taxes may also apply.

These rules can affect condominiums, single-family homes, vacation houses, apartments, and other short-term rental properties.

What are tourist development taxes?

Florida counties may impose local taxes on short-term accommodations in addition to the state sales tax.

These taxes are commonly called tourist development taxes or bed taxes.

The applicable rate depends on the property's location and the relevant local laws.

Owners with properties in Broward County and Miami-Dade County should not assume that the same tax rules or reporting procedures apply to both locations.

Does Airbnb automatically collect all the taxes?

Platforms such as Airbnb and Vrbo may collect and remit certain taxes on behalf of hosts.

However, property owners remain responsible for determining whether all applicable taxes are being collected and reported properly.

Responsibilities can differ depending on the booking platform, municipality, and whether the property also receives direct bookings.

Owners should review their platform tax reports and confirm compliance with state and local requirements.

Is Airbnb rental income subject to federal income tax?

Generally, yes.

Rental income must ordinarily be reported on a federal income tax return, although the reporting method depends on how the property is used and operated.

For some owners, income is reported on Schedule E.

Others may need to report income differently, particularly when substantial services are provided to guests.

The distinction can affect self-employment taxes, deductions, and other federal tax considerations.

What expenses can vacation rental owners deduct?

Qualifying rental expenses may include mortgage interest, property taxes, insurance, repairs, utilities, cleaning, management fees, and depreciation.

However, deductions may be restricted when the owner also uses the property personally.

For example, a vacation property used by the owner for several months each year may require expenses to be allocated between personal and rental use.

Special considerations for South Florida investors

Vacation rental owners should maintain accurate records of rental income, occupancy periods, business expenses, and personal use.

They should also understand the distinction between routine repairs and capital improvements that generally must be depreciated.

In coastal markets where insurance, maintenance, and property management costs can be significant, maintaining detailed records is especially important.

Get help with Florida vacation rental taxes

Property investors in Fort Lauderdale, Hollywood, Miami, and throughout South Florida can benefit from professional tax guidance.

James Ridout CPA provides tax and accounting services for real estate investors and rental property owners. Schedule a consultation to review your vacation rental tax obligations and potential deductions.