Are you listing a Cape Coral vacation home for short stays and wondering what taxes you need to collect? You’re not alone. The rules can feel confusing when you’re juggling platforms, cleaning schedules, and guest messaging. In this guide, you’ll learn exactly which taxes apply to short‑term rentals in Cape Coral, how much to collect, how to register, and how to stay audit‑ready. Let’s dive in.
What the tourist tax covers
Short‑term or “transient” rentals in Florida generally mean stays of six months or less. These bookings are taxable at the state level and also subject to a county tourist development tax in Lee County. If you host in Cape Coral, this applies to most nightly and weekly bookings.
The key takeaway: when a guest books for less than six months, you should expect to collect both the Florida state sales tax and the Lee County tourist development tax on the taxable charges.
How much to collect in Cape Coral
- Florida state sales tax: 6 percent on taxable rental charges.
- Lee County Tourist Development Tax (TDT): 5 percent on the same taxable base.
In practice, many hosts collect a combined 11 percent on taxable items for stays under six months. Always confirm your total applicable rate, since special local surcharges can change.
What counts as taxable
Florida generally taxes the charge for the accommodation itself and most mandatory fees tied to the stay. That usually includes:
- Nightly or weekly rent.
- Mandatory cleaning fees.
- Resort or linen fees that are part of the lodging charge.
- Parking fees that are part of the rental.
Items that may be treated differently include optional, separately stated services and fully refundable deposits that are returned in full. When in doubt, treat required fees as taxable or get written guidance from the Florida Department of Revenue.
Example bill
Here’s a simple Cape Coral booking example:
- Nightly rate: 200 dollars
- Mandatory cleaning: 50 dollars
- Taxable base: 250 dollars
- Florida state sales tax (6 percent): 15 dollars
- Lee County TDT (5 percent): 12.50 dollars
- Combined tax: 27.50 dollars
- Total to guest: 277.50 dollars
If a platform collects taxes, make sure your invoice and accounting match the platform’s reports.
Platforms and who remits
Online travel agencies often operate as marketplace facilitators. Some collect and remit the state and county taxes for you. Others collect only certain taxes or only for certain listings.
What you should do:
- Confirm in each platform’s tax settings exactly which taxes are collected and remitted for Cape Coral bookings.
- Download and keep the platform’s tax remittance reports. Save dates, amounts, and booking IDs.
- Do not assume you are off the hook. You may still need to register and file, even if a platform remits on your behalf.
How to register
You may need two registrations if you will collect or report taxes yourself:
- Florida Department of Revenue: Register for a sales and use tax account. This lets you collect and file state sales tax on transient rentals.
- Lee County Tourist Development Tax: Register with the county’s tax office for TDT. Follow Lee County’s official registration instructions.
Even if a platform collects, confirm whether you still need to register or file informational returns. Keep written proof from the platform that it collects and remits for your property.
Filing and due dates
- Florida DOR sets your filing frequency after you register. You might file monthly, quarterly, or annually depending on your tax volume.
- Lee County typically requires monthly TDT returns. Check your assigned schedule and due dates.
Late filings can lead to penalties and interest. If you receive credits for platform‑collected tax, your return should reflect that correctly.
How to set up listings to collect
- Configure taxes as line items so guests see them at checkout.
- Include required cleaning and similar mandatory fees in the taxable base unless you have written guidance to exclude them.
- For each platform, set your tax collection to match whether the platform is collecting or you are. Keep settings consistent across all booking channels.
- For direct bookings, add tax calculation to your website or reservation system and show taxes on receipts.
Records to keep
Create an audit‑ready folder for each property and keep records for at least 3 to 5 years. Include:
- Booking details: dates, rates, and guest name.
- Invoices and receipts showing taxes charged.
- Platform reports that show taxes collected and remitted on your behalf.
- Filed returns and proof of payment to Florida DOR and Lee County.
Reconcile platform tax reports to your bank deposits and accounting monthly.
Handling exemptions and longer stays
Stays over six months are generally not considered transient and are usually not subject to these taxes. Keep a signed lease and payment history to support the exemption. If a stay changes from short‑term to long‑term, document the change to show the correct tax treatment.
Penalties for noncompliance
If taxes are not collected or filed on time, penalties and interest can apply. If a platform did not collect and you did not collect, the owner or operator can still be held responsible. Address issues quickly and consider professional advice if you discover past under‑collection.
Quick checklist for Cape Coral hosts
Initial setup
- Confirm bookings under six months are taxable.
- Register with the Florida Department of Revenue for sales tax if you will collect or need to report.
- Register with Lee County for the Tourist Development Tax.
- Document each platform’s tax policy for Lee County with screenshots.
Collection and listing setup
- Set listings to charge the correct taxes or confirm platform collection.
- Treat mandatory cleaning and similar fees as taxable.
- Add tax calculation for all direct bookings.
Filing and remittance
- Confirm Florida DOR filing frequency and due dates.
- Confirm Lee County TDT filing schedule and portal access.
- File on time and keep proof. If platforms remit, keep their remittance reports.
Recordkeeping and reconciliation
- Retain booking, invoice, and tax records for 3 to 5 years.
- Reconcile platform tax reports to your accounting each month.
- Keep documentation for any long‑term lease exemptions.
Audit preparedness and advice
- Maintain proof of platform‑collected taxes.
- Seek written guidance for ambiguous fees or situations from Florida DOR.
- Consider a CPA familiar with Florida transient rental taxes.
Ready to simplify your short‑term rental compliance in Cape Coral? Our local team can help you set up the right tax workflow and align it with strong marketing and management systems. Connect with Pelican Vista Realty to get personalized, Cape Coral‑specific guidance that protects your investment and keeps your guest experience seamless.
FAQs
What is the Cape Coral tourist tax for short‑term rentals?
- In Lee County, short‑term stays are generally subject to a 5 percent county Tourist Development Tax plus Florida’s 6 percent state sales tax on taxable charges.
Which fees on a vacation rental booking are taxable in Florida?
- Nightly rent and most mandatory fees tied to the stay, such as required cleaning or resort fees, are generally taxable; optional, separately stated services may be treated differently.
Do platforms like Airbnb or Vrbo collect Cape Coral taxes for me?
- Many do in some form, but coverage varies; verify in your platform settings exactly which taxes are collected and keep the platform’s remittance reports.
Do I need to register for taxes if a platform remits?
- You may still need to register and file, or at least maintain records; confirm requirements with Florida DOR and Lee County and retain written proof of platform collection.
Are stays longer than six months taxed like short‑term rentals?
- Stays over six months are generally not considered transient and are typically not subject to these short‑term rental taxes when properly documented.
What happens if I forget to collect the tourist tax?
- You can still be responsible for the tax, plus penalties and interest; act quickly to correct, remit, and consider professional advice if amounts are significant.
