City Watch
Short-term rental rules in Dallas, TX
How Dallas regulates short-term rentals: the rules that apply, their sources, and pending changes.
Short-term rentals here are subject to registration, a lodging tax, or a small number of operating rules.
- The city's own 9% Hotel Occupancy Tax defines a short-term rental as a 'hotel' and reaches whole-home stays
- The June 2023 residential-zone-exclusion and registration ordinances are enjoined and unenforced (temporary injunction affirmed on appeal; Texas Supreme Court petition pending) — not in force
- Only the municipal lodging tax currently reaches STRs; no STR-specific registration or zoning device is enforceable
Based on: Two June 2023 Dallas STR ordinances (residential-zone use exclusion + citywide registration/occupancy ordinance), both
Summary of the rule
The Dallas City Code and State of Texas Tax Code define a short-term rental (STR) as a hotel for Hotel Occupancy Tax (HOT) purposes; owners/operators must collect and remit 9% Dallas City HOT (plus 6% state HOT) on net room receipts.
View the ordinance source ↗✓ Verified
Active litigation / open question
Dallas Short-Term Rental Alliance et al. v. City of Dallas — TRO/temporary injunction granted Dec 6, 2023 against enforcement of both 2023 STR ordinances (residential-zone exclusion + registration/occupancy ordinance) on constitutional property-rights grounds; Texas Court of Appeals (5th District) affirmed the injunction Feb 2025 and dismissed the City's motion for reconsideration Aug 19, 2025; in late 2025 the City petitioned the Texas Supreme Court for review, seeking to lift the injunction before the 2026 FIFA World Cup. The injunction remains in effect and the ordinances remain unenforced.
Reported as fact only, reflecting the code as currently in effect — not legal advice, and not a prediction of the outcome. Verify current status before relying on it.
Last reviewed Sep 15, 2026 · Sources · Report an error
Pending legislation
Monitoring Dallas · system last checked Nov 9, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.