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. You only need one state certificate number per address. So if you have multiple listings per address, add one certificate number to each listing.

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. This page walks you through the process step-by-step. After you complete the registration, go to the Customer Relation tab, view your list of properties, and click View Certificate. You only need one certificate number per address.

Step 2: Update your listing with your MassTaxConnect registration number to complete the registration process. When you register with Massachusetts, be sure to only submit the Certificate number and include the “C” prefix followed by the 10 numbers. No other numbers will work including those starting with EIN, PIT or ROC.

In addition, be sure not to add the Confirmation Number by mistake which is a number you’ll see when you submit.

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.

Listings that only host long-term stays (90+ nights) aren’t required to register in Massachusetts You can make this switch in your availability settings.

If your listing is a bed and breakfast home with 3 or less bedrooms, and should be exempt from tax, you do not need to register with the Massachusetts Department of Revenue. To make sure that the tax exemption is appropriately applied, make sure that the Property and guests and Rooms and spaces sections of your listing details are accurate: 

1. From the Listing details tab of your listing, scroll down to Property and guests. 
2. Click Edit. 
3. Select Bed and breakfast from the Which is most like your place? dropdown menu. 
4. In Which areas can guests use? choose the number of bedrooms. 
5. Click Save. 

You can only claim this exemption if you host three rooms or less in your bed and breakfast. Once you click Save, your listing will be auto-exempted, and you should see an exemption confirmation message under the Regulations tab.

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 31 nights and shorter for Short Term Rentals and reservations 90 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 31 nights and shorter for Short Term Rentals and reservations 90 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 31 nights and shorter for Short Term Rentals and reservations 90 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 31 nights and shorter for Short Term Rentals and reservations 90 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.
• Community Impact Fee: 3% of the listing price including any cleaning fees and guest fees, for reservations 31 nights and shorter for Short Term Rentals and reservations 90 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.