Effective January 1, 2019 Massachusetts has a new tax on short-term rentals. Below is a quick summary of the Law.
For stays starting July 1, 2019 that are booked January 1, 2019 or later. If a lease was signed prior to January 1st, no tax is due.
DURATION OF STAY
For any stays of 31 days or less
State Tax: 5.7%
Local Tax: up to 6% (Dennis currently @ 4%)
Cape Cod & Islands Water Protection Fund: 2.75%
Community Impact Fee: up to 3%
This is an optional tax a town can add via their legislative body for those who own multiple properties; to date, no town has adopted this tax in Barnstable, Dukes, and Nantucket counties.