Airbnb & VRBO Tax Compliance for Canadian Hosts in Florida

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.

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

• Florida DOR — Dealer registration (sales tax)
• DBPR — Vacation Rental License application
• IRS Form 1040-NR (non-resident return)
• CRA Form T776 — Statement of Real Estate Rentals
• IRS Form W-7 — ITIN Application