Massachusetts Vacation Rental Tax

Governor Baker signed into law a bill regulating and taxing 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.