NANTUCKET VACATION RENTALS

As with many other states in the United States, Massachusetts implemented a Room Occupancy Excise Tax on short-term rentals in 2019.  This tax is equal to the tax rate imposed when you book a hotel room in Massachusetts.  Below we have prepared a list of our most frequently asked questions about this tax.

What is the current Room Occupancy Tax rate in Nantucket?

• 11.7%

What types of rents/fees is the Room Occupancy Tax charged on?

• All non-refundable rents and fees, such as rent, pet fees, service fees, and cleaning fees.  The Room Occupancy Tax is NOT charged on potentially refundable items such as security deposits, pet deposits, etc.

Who pays the Room Occupancy Tax?

• The tenant pays the room occupancy tax, similar to how a customer pays sales tax or a hotel guest pays the Hotel Room Occupancy tax.

If I rent for more than 31 days, do I pay the Room Occupancy Tax?

• In the Commonwealth of Massachusetts, Room Occupancy Tax is charged only on short-term rental leases.  A short-term rental is defined as 31 nights, or as we like to clarify - 32 days including check-in and check-out.  If your lease is for 32 days including check-in and check-out dates then you would not be charged the Room Occupancy Tax.

If I rent for 14 days or less, do I pay the Room Occupancy Tax?

• The answer here is probably, but maybe not…There is an exemption to the Room Occupancy Tax that allows homeowners to certify to the state each year that they will not rent for more than 14 days or less in a calendar year.  If they do this annually then they can rent tax-free to their tenants for up to 14 days.  They can split that up between multiple tenants, but they cannot short-term rent their home for more than 14 days.  We have a few homes in our inventory that utilize this option, check with your agent if you are interested in this.

Have more questions about the Room Occupancy Excise Tax?  Contact your agent today.

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