TOT overview: what it is and who it applies to
Every South Bay city charges a Transient Occupancy Tax on short-term rental stays of 30 days or fewer. The rate is typically 10% of your gross rental income. TOT applies to your total booking revenue before any platform fees or deductions. Each city -- Imperial Beach, Chula Vista, National City -- has its own registration process and filing requirements.
TOT is technically a tax on guests, not on you. But you are legally responsible for collecting it and remitting it to your city. If you skip registration, miss a filing deadline, or fail to collect, you are personally liable for the back taxes plus penalties. This is not optional -- it is the cost of doing business in South Bay.
The one thing to understand about TOT
You are the tax collector for your city. Whether you are in Chula Vista, Imperial Beach, or National City, 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 so it is never accidentally spent.
Tax rates
South Bay TOT rates vary by city. Each city has its own rate and registration process. Here are the current rates for the major South Bay cities.
10%
Chula Vista TOT
Basis: Gross rental income
Chula Vista Municipal Code — register with city
10%
Imperial Beach TOT
Basis: Gross rental income
Imperial Beach Municipal Code — register with city
10%
National City TOT
Basis: Gross rental income
National City — verify current rate with city
Quick math example
A $1,000/night booking for 3 nights = $3,000 gross rental income
TOT (10%) = $300 · Total tax due = $300
This $300 is collected from the guest and remitted to the city. It is not your income.
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 South Bay, 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 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.
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 quarterly filing deadlines. Do this before your first booking, not after.
Filing & deadlines
South Bay, San Diego 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
- 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 period
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
- TOT rate applied per city
- 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
South Bay, San Diego TOT questions owners ask most.