Transient Occupancy Tax (TOT) - How does it work?

It is your responsibility as a Property Owner to report and pay any taxes associated with your short term rentals. There are two different types of taxes often associated with short term rentals: Income Tax and Transient Occupancy Tax. Please note that tax regulations vary by area, it is important to stay up to date on your areas current regulations.

Income Tax

Any funds that you acquire from renting out your home is considered additional income. As a result, it is your responsibility to report this income when you file your taxes.
To download a CSV of your billing statement please login to your Pillow Owner Dashboard.

Transient Occupancy Tax (TOT)

As a short-term rental property owner, you may be responsible for remitting to your local government what is known as TOT. This tax is a percentage (determined by your municipality) of the amount a guest pays for each reservation. This amount includes any service fees associated with the reservation such as cleanings.

The frequency in which you file TOT with your local government is dependent on your annual short-term rental income. If you earn $40,000 or less from renting out your property TOT can be filed on an annual basis. If your earnings are over $40,000, TOT must be filed on a monthly basis

View Do you Report My Income for information on how these taxes are collected and remitted. You have the ability to set your TOT as a custom pricing option in your Pillow Account. 

*Pillow does not provide tax or accounting advice. This material has been provided for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before filing any taxes.

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