Masschusetts Vacation Rental Tax

Effective January 1, 2019 Massachusetts has a new tax on short-term rentals.  Below is a quick summary of the Law.


EFFECTIVE  DATE

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


TAX  RATE

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.