San Diego’s Transient Occupancy Tax Increase – What Property Owners Need to Know

[Christina Labowicz]

If you own rental properties or short-term accommodations in San Diego, you’ll want to pay attention to the city’s new Transient Occupancy Tax (TOT) rates taking effect on May 1, 2025. These changes could impact your rental income and compliance requirements.

But don’t worry - if you weren’t already aware of these adjustments, you’re not alone. Recently, I spoke with a property owner in Mission Beach who wasn’t aware of the new tax adjustments and hadn’t updated their rental pricing. This oversight could have led to unexpected costs and compliance issues.

The City of San Diego has introduced new TOT rates based on location, which now fall into three categories: 11.75%, 12.75%, and 13.75%. Property owners are responsible for collecting and remitting the correct tax amount—whether they manage their rentals directly, through a property manager, or via online platforms like Airbnb.

If you’re renting out property, now is the time to:
✅ Check your tax zone – Use the city’s lookup tool to determine your rate
✅ Update your rental pricing & agreements – Ensure your listings reflect the correct tax rate
✅ Adjust your remittance process – TOT must be collected and submitted according to the new rules

Not sure how these changes impact your property? We break it all down in this week’s blog (linked to this post!), with key insights to help you stay compliant and avoid penalties.