These U.S. States Are Cashing in on Airbnb Tourist Taxes
Skift Take
The three U.S. states that generated the most in tourism taxes in 2023 were: Florida at $387 million, California at $212 million, and Tennessee at $135 million.
In 2023, Airbnb hosts in the U.S. contributed $2.2 billion in tourism taxes, according to new data from Airbnb. Hosts in Canada contributed $319 million.
Other states that generated a lot in tourism taxes: North Carolina: $125 million; Georgia: $98 million; Texas: $98 million; Colorado: $94 million; Arizona: $87 million; Washington: $78 million; and Virginia: $53 million.
Airbnb, however, has had a brush with tax authorities in Europe. Last December, it settled a $620 million tax probe from Italy. This was after Italian authorities alleged that Airbnb failed to withhold 21% of hosts’ rental income, and ordered the seizure of $836 million (euro 779.5 million) from the company. Now, a new law requires Airbnb to collect and remit tourist taxes in Italy.
Airbnb’s one-time expenses for tax withholding and reserves for taxes in 2023 amounted to $1 billion.