Massachusetts

Massachusetts

 

IMPORTANT RESOURCES

KEY DEFINITIONS

  • “Short-term rental” is an owner-occupied, tenant-occupied or non-owner occupied property including, but not limited to, an apartment, house, cottage, condominium or a furnished accommodation that is not a hotel, motel, lodging house or bed and breakfast establishment, where: (i) at least 1 room or unit is rented to an occupant or sub-occupant; and (ii) all accommodations are reserved in advance; provided, however, that a private owner-occupied property shall be considered a single unit if leased or rented as such. Short term refers to any rental period of 31 days or less.
  • Local jurisdictions may impose regulations on short-term rentals pursuant to state law. 

LICENSING REQUIREMENTS

  • Hosts in Massachusetts are required to register their listings with the Massachusetts Department of Revenue.
  • 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.
  • 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.
  • 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.

TAX INFORMATION

  • State Excise Tax: 5.7% of the listing price including any cleaning fees and guest fees, for reservations 30 nights and shorter for Short Term Rentals and reservations 89 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 30 nights and shorter for Short Term Rentals and reservations 89 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 30 nights and shorter for Short Term Rentals and reservations 89 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 30 nights and shorter for Short Term Rentals and reservations 89 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 30 nights and shorter for Short Term Rentals and reservations 89 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.

FIRE & SAFETY

  • All operators must have at least $1,000,000 (one million dollars) of liability insurance to cover each short-term rental. Insurance information can be found here. 
  • Notwithstanding any ordinance or by-law adopted by a city or town pursuant to fire safety, an operator of a short-term rental must post inside the short-term rental unit information regarding the location of any fire extinguishers, gas shut off valves, fire exits and fire alarms in the unit and building. 

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