What Airbnb and VRBO collect on your behalf
In Florida, both Airbnb and VRBO have Marketplace Facilitator agreements with the Florida DOR and most counties. This means the platform automatically collects and remits:
Florida state sales tax (6%) on rent charged for accommodations rented for 6 months or less.
Discretionary sales surtax (0.5–1.5% depending on county) in most jurisdictions.
Tourist Development Tax (TDT) in the vast majority of Florida counties — rates range from 2% to 6%.
However, platform remittance does not eliminate your registration obligation with the Florida DOR. You may still need to register as a dealer if you earn rental income outside these platforms or if a county has opted out of the marketplace facilitator agreement.
Verify per county
A handful of smaller counties have not entered into marketplace facilitator agreements for TDT. Always verify on the DOR website and your county tax collector's site that TDT is in fact being remitted by the platform for your specific county.
When the host must register and collect sales tax
You must register with the Florida DOR and collect/remit sales tax yourself if:
You rent directly (outside any platform) for periods of 6 months or less.
You use a platform that does not have marketplace facilitator status for your county.
Your rental agreement exceeds what the platform reports (e.g., a separate cleaning fee billed directly).
Registration is free via DOR online portal. Filing frequency (monthly, quarterly, annually) depends on average tax collected per month. Penalty for late filing: 10% of tax due, minimum $50.
The 1099-K: what it means for you
Airbnb and VRBO issue a Form 1099-K to hosts who receive payments above IRS thresholds. As of tax year 2025, the threshold is $5,000 in gross payments (the IRS phased down from the previous $20,000 / 200-transaction threshold). The 1099-K reports gross payments before platform fees, it is not your taxable income. You deduct platform fees and expenses on Schedule E.
Even if you receive no 1099-K, all rental income must be reported to the IRS. The IRS cross-references platform data through third-party information reporting.
US income reporting: Schedule E (or Schedule C)
For most Canadian owners renting their Florida vacation property on a passive basis:
File IRS Form 1040-NR (non-resident alien return) with Schedule E (Supplemental Income and Loss).
Report gross rental income, then deduct: platform fees, property management fees, mortgage interest (if any), property taxes, insurance, depreciation (27.5-year straight-line on building value), repairs, utilities, advertising.
Net rental income is taxed at graduated US rates; net rental loss is generally a passive loss (cannot offset other income).
Canada-US tax treaty (Article VI) allows you to elect net-basis taxation — which is strongly recommended over the default 30% withholding on gross rents.
If you run the rental like a business (daily rentals, substantial services), the IRS may classify income as Schedule C (self-employment). Most vacation rentals remain Schedule E.
Canadian reporting: CRA T776 and foreign income
As a Canadian resident, you must also report your Florida rental income to the Canada Revenue Agency on Form T776, Statement of Real Estate Rentals, attached to your T1 General return. Key points:
Report income in Canadian dollars (convert using the Bank of Canada average annual exchange rate).
You can deduct equivalent Canadian-dollar expenses (management fees, property taxes, insurance, CCA/depreciation).
US income tax paid is creditable as a Foreign Tax Credit (Form T2209), preventing double taxation.
T1135 obligation may apply if the property cost more than CAD $100,000 (see dedicated T1135 article).
Specific issues for Canadian STR hosts
ITIN requirement: To file a US tax return and receive a refund of any over-withheld tax, you need an Individual Taxpayer Identification Number (ITIN) — Form W-7. See ITIN article.
DBPR Vacation Rental License: Any property rented more than 3 times per year for stays under 30 days requires a DBPR license (F.S. §509.241). Operating without it: fines up to $1,000/day.
30-day rule: Rentals of 30 consecutive days or more are NOT subject to sales tax or TDT. Many Canadians mix STR (under 30 days) with seasonal rentals (30+ days) — the tax treatment differs entirely.
FIRPTA withholding: Unless you file the net-basis election with the IRS, a tenant renting directly from you (not via platform) is required to withhold 30% of gross rents if you are a non-resident. Platforms do not handle FIRPTA — this is between you and your tenant for direct rentals.
Official forms and registration links
Reader's responsibility
Always use the most current version from the official website. Thresholds and rates change. CanadaFlorida does not replace a licensed professional.
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
| Layer | Who usually collects | Who answers for it |
|---|---|---|
| State sales tax | Often the platform, configuration-dependent | The host, always |
| County TDT | Varies by county agreement | The host, always |
| 1099-K | The platform reports payments to the IRS | The host declares the income either way |
A worked example
A Levis owner lists in a gulf county. She confirms in writing: the platform collects state sales tax on her bookings; the county TDT is NOT covered, so she registers with the county collector and remits monthly; she keeps the confirmation, the registration and twelve remittance receipts in one folder. At tax time the 1099-K matches her own ledger because the ledger came first, and the same numbers feed the T776 and 1040-NR pages of this manual.
Common mistakes
Assuming the platform handles everything because a checkbox says taxes. Never registering with the county because the state side looked covered. Treating the 1099-K as the definition of income. Letting platform settings change without an annual written re-confirmation. And mixing the tax file with the licence file: both are required, neither replaces the other.
Compliance checklist
- Written confirmation of what the platform collects, renewed yearly.
- County registration done where TDT is host-remitted.
- Monthly remittance calendar with receipts kept.
- Own ledger first; 1099-K reconciled against it.
- DBPR licence file maintained separately.
- T776 and 1040-NR fed from the same ledger.
FAQ
Does this replace the TDT, rules or marketing guides?
No: this page only answers who collects and remits what; the law lives in the city-rules and preemption guides, the county percentages in the TDT guide, the calendar in the marketing guide.
References
Sources and references
Official pages consulted for this guide; confirm the current versions at the source.
Florida Department of Revenue : Department architecture behind registration and remittance. Consulted June 11, 2026.
IRS, About Form 1040-NR : Where the declared income lands for a nonresident host. Consulted June 11, 2026.
Bank of Canada, Daily exchange rates : Official CAD/USD rate. Consulted June 11, 2026.
Sources and references
Public sources verified as of the last review date.
- F.S. §212.03 — Rental of living or sleeping accommodations. leg.state.fl.us/§212.03
- F.S. §125.0104 — Tourist Development Tax. §125.0104
- IRS Publication 527 — Residential Rental Property. irs.gov/p527
- Canada-US Tax Convention, Article VI — Income from Real Property. canada.ca
- CRA T776 — Statement of Real Estate Rentals. canada.ca/t776