TOT overview: what it is and who it applies to
The City of San Diego levies a Transient Occupancy Tax (TOT) on all short-term rental stays — defined as any rental of 30 days or fewer. The tax applies to the gross rental income from each stay. Old Town / Mission Hills follows the same zoned TOT structure as every other San Diego neighborhood. Your exact rate depends on your property address and the city zone map.
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 San Diego. The city does not 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 is never accidentally spent. There is no separate Old Town tourism assessment on top of the standard TOT.
Tax rates
San Diego uses a zoned TOT structure. Your rate depends on your exact property address (check the city zone map). The rates since May 2025 are:
11.75%
TOT Zone A
Basis: Gross rental income
Lowest zone rate — check your address
12.75%
TOT Zone B
Basis: Gross rental income
Mid-zone rate — check your address
13.75%
TOT Zone C
Basis: Gross rental income
Highest zone rate — check your address
Quick math example
A $1,000/night booking for 3 nights = $3,000 gross rental income
At the 12.75% zone rate: TOT = $382.50
This $382.50 is collected from the guest and remitted to the city. It is not your income. Your exact rate (11.75%, 12.75%, or 13.75%) depends on your property address.
What Airbnb collects 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 Old Town, San Diego 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 San Diego 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 monthly. 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.
Registering for TOT
TOT registration is handled by the San Diego 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 San Diego 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 monthly filing deadlines. Do this before your first booking, not after.
Filing & deadlines
San Diego TOT returns are filed monthly — due on the last day of the month following the rental period. Missing deadlines triggers automatic penalties — the city does not send reminders.
| Period | Covers | Due Date |
|---|---|---|
| January rentals | January 1–31 | February 28 |
| February rentals | February 1–28 | March 31 |
| June rentals (peak) | June 1–30 | July 31 |
| December rentals | December 1–31 | January 31 |
Penalty structure for late filing
- 1% of the amount due — imposed on the first day past the deadline
- Plus 1/3 of 1% per day — accruing daily for each additional day the payment remains delinquent
- Maximum penalty capped at 25% of the amount due
- Zero-return required — file even if you had no rentals that month
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
- Zoned TOT rate applied
- Monthly 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
Old Town, San Diego TOT questions owners ask most.