If you own a short-term rental in San Diego, your tax rate changed in May 2025. The city replaced its old flat Transient Occupancy Tax with a zoned system — and your rate now depends on where your property sits on the map.
Here's what you need to know to stay compliant and price your listings correctly.
What changed
Before May 2025, every STR in San Diego paid the same flat TOT rate. Now the city uses three zones, each with a different rate:
- Zone 1 — 11.75% of gross rental income
- Zone 2 — 12.75% of gross rental income
- Zone 3 — 13.75% of gross rental income
Your zone is determined by your property address. Two properties on the same street can be in different zones. Don't assume — check the city's official TOT zone map for your exact address.
Why it matters for your pricing
A 2% difference in TOT might not sound like much, but it adds up fast. On a $400/night booking for three nights, the difference between Zone 1 and Zone 3 is $24. Over a year with 180 booked nights, that's roughly $1,440 in additional tax.
You need to pass this through to guests as a separate line item. If you're absorbing TOT into your nightly rate, you're losing margin — and your pricing looks artificially lower than comparable listings.
What Airbnb and VRBO handle
Airbnb has a tax collection agreement with San Diego and handles TOT automatically for Airbnb bookings. But you still need your own TOT registration with the city — Airbnb doesn't cover that part.
VRBO collects TOT from guests, but their remittance to San Diego varies. Confirm directly with VRBO support and the city. For direct bookings through your own website, you collect and remit everything yourself.
How to check your zone
Visit the City of San Diego Treasurer's STRO page and look up your property address on the TOT zone map. Make sure your PMS or listing platform reflects the correct rate for your zone.
What this means by neighborhood
The zoned system hits every San Diego neighborhood differently. Coastal areas like La Jolla, Pacific Beach, and Coronado tend to fall in higher zones. Inland areas like Mission Valley span multiple zones depending on exact location.
Check your specific neighborhood's tax guide for details on how the zoned rate applies to your area.
Bottom line
Look up your zone. Update your pricing. Make sure your TOT registration is current. File quarterly — the city doesn't send reminders, and penalties start on day one after a missed deadline.
If you're not sure where you stand, talk to us. We handle TOT compliance for every property we manage — zoned rate verification, quarterly filing, zero missed deadlines.