Florida Vacation Rental Tourist Tax Guide for Kissimmee and Davenport Owners
Tourist development tax is one of the most commonly misunderstood compliance obligations for Florida vacation rental owners. Here is a complete breakdown of what you owe, how it is calculated, and who is responsible for remitting it.
What Is Tourist Development Tax?
Tourist Development Tax (TDT) is a county-level tax on short term rental revenue in Florida. It is separate from — and in addition to — Florida state sales tax. Every Florida county with a TDT uses the revenue to fund local tourism promotion, infrastructure, and related purposes.
TDT applies to all transient rental income — any rental of less than six months in duration. It is calculated on the total rental price charged to the guest, including any cleaning fees, but excluding government taxes already collected.
Osceola County TDT Rate
Osceola County currently charges a Tourist Development Tax of approximately 6% on short term rental revenue. Combined with Florida state sales tax of 6%, the total tax rate in Kissimmee is approximately 12%. Always verify the current exact rate directly with the Osceola County Tax Collector, as rates can change.
Polk County TDT Rate
Polk County charges a 5% Tourist Development Tax. Combined with Florida state sales tax of 6% and the county discretionary surtax, the total tax rate in Davenport is typically around 11 to 12%.
Who Is Responsible for Collection and Remittance?
Bookings through major OTAs (Airbnb, VRBO): Most major platforms collect and remit Florida state sales tax and local TDT directly to the relevant agencies on behalf of hosts. Verify this for each platform — not all platforms remit all taxes in all counties.
Direct bookings: You or your property manager are responsible for collecting the applicable taxes from the guest and remitting them directly to the Florida Department of Revenue (state sales tax) and the county tax collector (TDT). Failure to collect and remit creates significant legal and financial liability.
Edge's approach: Edge collects and remits all applicable taxes on behalf of every property we manage, for both OTA bookings and all direct bookings. Every monthly owner statement includes a full tax reconciliation.
Common Mistakes
Assuming OTA remittance covers everything. Not registering with the county tax collector. Collecting taxes on gross revenue but not remitting. These are all avoidable with proper setup at onboarding.
