Missouri Vacation Rental Tax: What STR Investors Owe and How to Register

Running an Airbnb or vacation rental in Missouri means collecting and remitting taxes at multiple levels — state, county, and in some cities, municipal. Operators who don't register properly face back tax liability, interest, and penalties. Platforms like Airbnb collect some of these taxes automatically, but not all of them — and relying on the platform to handle everything is a common and expensive mistake.

Here's exactly what Missouri vacation rental operators owe, who collects it, and how to comply.

The State Sales Tax on Short-Term Rentals

Missouri imposes its standard 4.225% state sales tax on all short-term rentals — stays of 30 days or fewer. This tax applies to the gross rental amount charged to the guest, excluding any separately stated taxes.

Registration requirement: Before operating a short-term rental, you must register with the Missouri Department of Revenue to collect and remit this sales tax. Registration is done through the Missouri Department of Revenue's online portal at mytax.mo.gov. You'll receive a Missouri Retail Sales Tax license, which must be posted at the rental property (or kept on file in documented form for mobile operations).

Filing and remittance frequency: The Department of Revenue assigns your filing frequency based on expected tax liability:

• Monthly filers (higher-volume operators): Due by the 20th of the following month
• Quarterly filers: Due on the 20th of the month following the quarter end

Once registered, you must file even in periods with zero rental income. Missed filings trigger automatic penalties.

What Airbnb remits in Missouri: Airbnb collects and remits Missouri state sales tax on behalf of hosts operating through its platform. This covers the 4.225% state component. What it does not automatically handle: county-level lodging taxes, municipal tourism taxes, or any local add-on taxes. These remain the host's responsibility.

Vrbo: Vrbo also collects state sales tax in Missouri. Confirm with your specific platform which taxes are collected on your behalf — this can change, and platform tax collection policies are specific to individual agreements and jurisdictions.

Regardless of what platforms collect, you remain legally responsible for the correct taxes being remitted. Verify periodically.

Branson Tourism Tax: 4% Municipal Rate

Branson is one of the most formalized short-term rental markets in Missouri. The city levies a 4.0% municipal tourism tax on all short-term rental activity within city limits. This is separate from and in addition to state sales tax.

Operators must collect and remit this tax directly to the Branson Finance Department on or before the 20th of each month. Late remittances generate penalties.

The total tax burden on a Branson rental guest typically runs 12% to 14% depending on the specific property location:

• Missouri state sales tax: 4.225%
• Stone County or Taney County local taxes: 2.0–2.5%
• Branson municipal tourism tax: 4.0%
• Other local levies: varies

The Branson STR licensing stack: Operating legally in Branson requires more than tax registration. You also need:

• An annual STR Business License: $100/year (license year runs May 1–April 30)
• An STR Permit from the Branson Fire Department: $150 application fee, requires a fire safety inspection
• A $100 tourism tax bond posted with the city (refundable after three years of timely filings)

The fire permit is valid for three years and is transferable to a new owner upon sale — a selling point for properly permitted properties.

Lake of the Ozarks Vacation Rental Taxes

The Lake of the Ozarks lodging tax structure is decentralized because the lake spans parts of Camden, Miller, and Morgan Counties, each with its own taxing authority.

Camden County: The county levies a tourism tax on short-term rentals. Register with the Camden County Collector before operating. The county is the most common base for Lake of the Ozarks vacation rental operators.

State sales tax: The same 4.225% Missouri state sales tax applies to Lake of the Ozarks rentals. Register with the Department of Revenue as described above.

City of Lake Ozark municipal restrictions: The City of Lake Ozark restricts STRs to specific zoning districts and monitors listings on Airbnb and Vrbo. Unauthorized STR operations in prohibited zones (primarily R-1 and R-2 residential) face fines up to $500 per day. Register for city business licensing if your property falls within city limits and is in a permitted zone.

What the Taxes Actually Cost: A Example

For a Branson vacation rental generating $40,000 in gross annual rental revenue:

These taxes are collected from guests and remitted — they're not a cost to the operator directly. But failure to collect and remit them becomes a liability to the operator, including interest from the date tax was due.

For the Lake of the Ozarks at a similar revenue level:

• Missouri state sales tax: $1,690
• Camden County lodging tax: varies (typically 2–4%)
• No municipal tourism tax in unincorporated areas

Capital Gains Tax on Vacation Rental Sales

When you sell a vacation rental property in Missouri, HB 594 (signed July 2025) eliminates Missouri state capital gains tax for individual investors and pass-through entity members. The gain from a Branson or Lake of the Ozarks property sale is fully exempt from state capital gains tax if held in an LLC, S-corp, or personal name.

Federal capital gains tax still applies — long-term capital gains at 0%, 15%, or 20% depending on income, plus depreciation recapture at up to 25%. The state exemption is meaningful but doesn't eliminate the federal layer.

Vacation rental properties are also eligible for bonus depreciation on furnishings and equipment (100% immediate expensing for qualifying personal property under the "One Big Beautiful Bill Act," which Missouri aligns with). This can significantly reduce ordinary income tax in years with major capital expenditures for the property.

Income Tax on Vacation Rental Profits

Net rental income from a Missouri vacation rental flows to your personal return as ordinary income. Missouri's top individual income tax rate is 4.70%. The income is reported on Schedule E (if passive) or Schedule C (if active business), and pass-through to your Missouri Form MO-1040.

The Kansas City and St. Louis City 1% earnings taxes apply to active rental businesses operated within those city limits — relevant if you're running an urban short-term rental operation in those jurisdictions, but generally not applicable to Branson or Lake of the Ozarks properties.

Getting Registered: Step by Step

1. Missouri Department of Revenue registration: Apply for your Missouri Retail Sales Tax license at mytax.mo.gov before your first rental.
2. County lodging tax registration: Register with the county collector for the county where your property is located (Camden County Collector for most Lake of the Ozarks properties; Taney County for most Branson area properties).
3. City licensing (if applicable): If in Branson city limits, obtain the STR business license ($100) and fire department permit ($150). If in Lake Ozark city limits, verify your zoning district and obtain required city business licensing.
4. Platform verification: Confirm which taxes your booking platform collects and remits automatically. Document this in writing.
5. Set up monthly remittance calendar: Mark the 20th of each month for Branson tourism tax remittance; align state sales tax filing with your assigned frequency.

What the Missouri Investment Property Guide Covers

The Missouri Investment Property Guide includes the complete short-term rental tax compliance framework — including the registration steps for the Missouri Department of Revenue, the Branson licensing and fire permit process, the Lake of the Ozarks county registration requirements, and the income tax treatment of vacation rental profits at the state level. It also covers the HOA due diligence checklist for STR properties and the zoning verification process for both Branson and Lake Ozark jurisdictions.

The Short Version

Missouri vacation rental operators owe state sales tax (4.225%), county lodging taxes, and in Branson, a 4% municipal tourism tax. Register before your first rental. Platforms handle some but not all of these taxes. Know exactly what's being collected on your behalf, and file the rest yourself. The licensing process in Branson is more formalized than most Missouri markets — budget the $100 business license and $150 fire permit into your startup costs and comply from day one.

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