Newport Beach transient occupancy tax: what it is and who it applies to
The Newport Beach TOT tax rate applies to all vacation rental stays of 30 days or fewer. The transient occupancy tax is calculated on gross rental income from each stay, including any charges that are part of the total booking payment. As of 2026, Newport Beach collects over $9 million annually from STR operators through TOT registration and filing.
TOT is a tax on guests, not on owners — but you are legally responsible for collecting it and remitting it to the city. Failure to register, collect, or remit is a compliance violation that can result in your permit being suspended or revoked, in addition to back-tax assessments plus penalties.
The one thing to understand about TOT
You are the tax collector for the City of Newport Beach. The city doesn't care whether your guest paid — they will come to you. Build TOT into your pricing from day one, pass it through to guests as a separate line item, and set aside the collected amount in a separate account so it's never accidentally spent.
Newport Beach vacation rental tax rates
Newport Beach has two components to its short-term rental tax. Both apply to every stay under 30 days.
10%
Transient Occupancy Tax (TOT)
Basis: Gross rental income
Newport Beach Municipal Code Chapter 3.16
1%
Visitor Service Fee (VSF)
Basis: Gross rental income
Supports Visit Newport Beach tourism promotion
11%
Combined total
Basis: Per booking
Applied to every short-term stay
Quick math example
A $1,000/night booking for 3 nights = $3,000 gross rental income
TOT (10%) = $300 · VSF (1%) = $30 · Total tax due = $330
This $330 is collected from the guest and remitted to the city. It is not your income.
Newport Beach Airbnb auto remit TOT: what's collected vs. what you handle
Platform tax handling varies. This is one of the most common sources of compliance errors — owners assume Airbnb handles everything, don't maintain their own TOT registration, and get caught in an audit.
Airbnb
Airbnb has a tax collection agreement with Newport Beach and automatically collects and remits TOT for all Airbnb bookings. You will still need to maintain your own city TOT registration. Airbnb does not remit on behalf of other platforms you may use.
Collects
✅Remits
✅VRBO / Vrbo
VRBO collects TOT from guests at booking as of 2024, but their remittance arrangements vary by jurisdiction. Confirm current status directly with VRBO support and with the City of Newport Beach Revenue Division. Do not assume VRBO remits — the city bills you if they don't.
Collects
✅Remits
❌Direct bookings (your website)
You collect TOT directly from guests at booking and remit it yourself. Include TOT as a separate line item on your booking confirmation. Never combine it with your nightly rate.
Collects
❌Remits
❌Bottom line: Maintain your own TOT registration regardless of what platforms collect. File returns every quarter. If a platform fails to remit and the city comes to you, your only defense is documentation proving the platform collected and was obligated to remit.
Newport Beach TOT registration process
TOT registration is handled by the City of Newport Beach Revenue Division — separately from your STR permit application. You must complete both before your first guest checks in.
Register with the Revenue Division
Visit the City of Newport Beach Finance Department website or call the Revenue Division directly. Register as a Transient Occupancy Tax collector for your property address. You will receive a TOT account number used for all future filings.
Obtain your TOT certificate
After registration, the city issues a TOT certificate for your property. This must be kept on file and available for inspection. Some owners post it in the rental unit alongside the STRO permit number.
Set up your remittance process
Decide how you'll track and remit: a dedicated bank account for TOT collected, a spreadsheet logging every booking and tax amount, and a calendar reminder for quarterly filing deadlines. Do this before your first booking, not after.
Filing & deadlines
Newport Beach TOT returns are filed quarterly, with an annual reconciliation. Missing deadlines triggers automatic penalties — the city does not send reminders.
| Period | Covers | Due Date |
|---|---|---|
| Q1 | January – March | April 30 |
| Q2 | April – June | July 31 |
| Q3 | July – September | October 31 |
| Q4 + Annual Reconciliation | October – December | January 31 |
Penalty structure for late filing
- 10% of tax due — imposed on the first day after the deadline
- An additional 10% — if not paid within 30 days of the original deadline
- 1.5% per month interest — compounding on the unpaid balance
- Zero-return required — file even if you had no rentals that quarter
Record keeping
The city can audit any 4-year lookback period. If you can't produce documentation for a stay, the city will estimate the tax owed — and their estimate won't be conservative. Keep these records for every booking, every year.
Booking records
- Platform confirmation
- Guest name & contact
- Check-in and check-out dates
- Total nightly rate charged
- Cleaning fee charged
Tax records
- TOT amount collected per booking
- VSF amount collected per booking
- Quarterly remittance receipts
- City TOT returns filed
- Any refunds or cancellations
Operational records
- Permit number and expiration
- TOT account number
- Annual renewal confirmations
- Any city correspondence
- Violation notices (if any)
Frequently asked questions
Newport Beach TOT questions owners ask most.