Texas Hotel Tax Exemption for Medical Patients: Stays of 30 Days or More
If you're staying in Texas for medical treatment, the Texas hotel occupancy tax exemption can save you hundreds or even thousands of dollars. Texas Tax Code Section 156.101 exempts hotel stays of 30 or more consecutive days at the same property from all state and local hotel occupancy taxes. In cities like Houston, that totals approximately 17% of your nightly rate.
This Texas hotel tax exemption is especially valuable for medical patients undergoing extended treatments — radiation therapy, chemotherapy, transplant recovery, or clinical trials that require weeks or months of nearby housing. Whether you are staying at a hotel near MD Anderson, an extended-stay property near UT Southwestern, or a furnished apartment near Dell Seton in Austin, the 30-day exemption applies to any registered lodging property in the state and can save patients over $1,500 on a 90-day stay.
How the Texas hotel occupancy tax exemption works
The Texas state hotel occupancy tax is 6%. On top of that, cities and counties add their own local hotel taxes. In Houston, local taxes add up to approximately 11% more — bringing the total to roughly 17%. In Dallas, the combined rate is 15% (6% state + 9% city, after the city rate increased from 7% to 9% effective Jan 1, 2023 under Prop A). In San Antonio, it's around 16.75%.
If you stay 30 or more consecutive nights at the same property, you are exempt from all of it — both the state 6% and the local taxes. This is not a discount or a special program. It is Texas law.
Key statute: Texas Tax Code Section 156.101 — "This chapter does not impose a tax on a person who has the right to use or possess a room in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the period."
City-by-city tax rate breakdown
Houston — 17% combined
State: 6% + City: 7% + County: 2% + Sports Authority: 2% = 17%
Dallas — 15% standard (17% at large hotels)
State: 6% + City: 9% = 15% (Dallas Tourism PID adds 2% at hotels with 100+ rooms)
San Antonio — 16.75%
State: 6% + City: 9% + County: 1.75% = 16.75% (Bexar County put a proposal to raise its 1.75% venue tax to 2% on the November 4, 2025 ballot; confirm the current rate with the hotel)
Austin — 17% combined
State: 6% + City: 11% (9% occupancy + 2% venue project) = 17% (the Austin Tourism PID adds a separate 2% assessment at hotels with 100+ rooms)
How to claim it
- Book a stay of 30 or more consecutive nights at the same hotel, extended-stay property, or furnished apartment.
- Give written notice at check-in. Tell the front desk in writing that you will be staying 30+ consecutive nights, and ask them to confirm that hotel occupancy tax will be removed.
- Without written notice the property charges tax for nights 1 to 30 and stops from night 31; that tax is not refunded (Comptroller Publication 96-224).
- If they don't remove the tax, cite Texas Tax Code Section 156.101 and ask to speak with the property manager. The law is clear and well-established.
Tip: Ask about the tax policy before you book. Some properties prorate the tax — charging it for the first 30 days and waiving it from day 31 onward. Only written notice at check-in makes nights 1 to 30 exempt.
The written-notice difference — this saves the most money
There are two paths under the law, and the difference is hundreds of dollars:
Path 1 — With written notice at check-in (saves the most)
Provide written notice of your intent to stay 30+ consecutive days when you check in. This can be a signed registration card, an email reservation confirmation, or a signed letter. With written notice, you are exempt from the notice date, provided you actually stay the next 30 consecutive days (Comptroller Publication 96-224); if the desk collects anyway, ask for the refund on night 31.
Path 2 — Without written notice (default — costs you money)
Without written notice, you pay the tax for the first 30 days and are exempt after that (Comptroller Publication 96-224); give written notice at check-in and the exemption runs from the notice date. For a stay of exactly 30 nights without notice, this means you save nothing.
This is the single most important thing to know: providing written notice at check-in is the difference between saving $450–$1,150 and saving $0 on a 30-night stay ($450 at $100 a night in Dallas at 15%; about $1,150 at $225 a night in Houston at 17%).
What this means for medical patients
Most cancer treatments, organ transplants, and specialty procedures require extended stays in Texas — often 30 to 90 days or more. Radiation therapy alone typically requires daily visits for 5 to 7 weeks. Bone marrow transplant patients commonly stay 60 to 100+ days. Clinical trials at MD Anderson or UT Southwestern can require months of nearby housing.
This makes the tax exemption especially relevant to medical travelers. It also makes furnished apartments with 30-day minimums dramatically cheaper than nightly hotel stays — you get a lower nightly rate and you eliminate the combined hotel tax (17% in Houston and Austin, about 15% in Dallas, about 16.75% in San Antonio). For a 60-day stay, the combined savings can exceed $2,000.
Cost comparison
The following table shows what a 45-day stay costs under three scenarios, assuming Houston's approximately 17% combined hotel occupancy tax rate.
| Lodging type | Nightly rate | 45-day total |
|---|---|---|
| Hotel (no written notice) $150/night + 17% tax on nights 1–30, exempt from night 31 | $150 | $7,515.00 |
| Furnished apartment (30-day min) $120/night — the 30-day lease is written notice, so tax exempt from night 1 | $120 | $5,400.00 |
| Extended-stay hotel (30-day min) $80/night — tax exempt (30+ day booking) | $80 | $3,600.00 |
Breakdown — Furnished apartment (45 days at $120/night):
- A 30-day-minimum lease is a written agreement to stay 30+ nights, so all 45 nights are exempt: $120 × 45 = $5,400.00
- The same apartment rented night by night with no written notice: $120 × 30 × 1.17 + $120 × 15 = $6,012.00
- Saved by the written agreement: $612.00
Breakdown — Extended-stay hotel (45 days at $80/night):
- 45 days, tax exempt from day 1 (30+ day booking): $80 × 45 = $3,600.00
- Same stay with no written notice (17% tax on nights 1–30): $80 × 30 × 1.17 + $80 × 15 = $4,008.00
- Savings from written notice alone: $408.00
Total savings: $2,115.00 by choosing the furnished apartment on a 30-day lease over the hotel booked without written notice. The lower nightly rate saves $1,350, and the exemption from night 1 avoids the $765 of tax the hotel charges on nights 1 to 30. For longer stays, the savings compound further.
Which properties qualify
The exemption applies to any property registered with the Texas Comptroller as a "hotel" under the Texas Tax Code. This includes:
- ✓ Hotels and motels — all major chains (Hilton, Marriott, IHG, etc.)
- ✓ Extended-stay hotels — Extended Stay America, Residence Inn, Homewood Suites, TownePlace Suites, Staybridge Suites
- ✓ Furnished apartments — corporate housing providers with Texas hotel licenses
- ✓ Corporate housing — providers registered as hotels with the Comptroller
Note on short-term rentals: Properties listed on Airbnb, VRBO, and similar platforms may or may not honor the exemption. Many hosts collect tax through the platform's automated system and do not manually adjust for 30-day stays. If you're relying on this exemption, book directly with a property that is clearly registered with the Texas Comptroller and will confirm the exemption in writing.
The counterintuitive math
In Houston (17% tax), booking 30 nights at $100/night is actually cheaper than booking 26 nights:
| Stay length | Room cost | Tax | Total |
|---|---|---|---|
| 26 nights | $2,600 | $442 | $3,042 |
| 30 nights (with written notice) | $3,000 | $0 | $3,000 |
Four extra nights saves $42. If your treatment schedule is flexible, extending to 30 nights can cost less than a shorter stay.
Frequently Asked Questions
Do I need to do anything special to claim the Texas hotel tax exemption?
Yes — there are two paths, and the difference is significant. Path 1 (best): Provide written notice at check-in that you intend to stay 30+ consecutive days. This can be a signed registration card, email confirmation, or signed letter. With written notice, you are exempt from the notice date, provided you actually stay the next 30 consecutive days (Publication 96-224); if the desk collects anyway, ask for the refund on night 31. Path 2 (default): Without written notice, you pay full tax for the first 30 days and the exemption only kicks in on day 31. The tax on nights 1 to 30 is not refunded: the Comptroller's Publication 96-224 says guests who do not notify the hotel must pay the tax for the first 30 days and will be exempt after that. Always provide written notice at check-in.
Does the exemption apply to Airbnb or VRBO stays?
The exemption applies to properties that are registered with the Texas Comptroller as hotels — which includes hotels, motels, extended-stay properties, furnished apartments, and some corporate housing providers. Most Airbnb and VRBO hosts are registered and do collect hotel occupancy tax, but whether they will honor the 30-day exemption varies. Some hosts will adjust pricing manually. Others use automated tax collection through the platform and may not remove the tax. If this matters to you, book directly with a property that is clearly registered and will honor the statute.
What if the hotel refuses to remove the tax after 30 days?
Cite Texas Tax Code Section 156.101 and ask to speak with the property manager or general manager. The law is clear: stays of 30 or more consecutive days at the same establishment are exempt from state hotel occupancy tax. If the property still refuses, you can file a complaint with the Texas Comptroller of Public Accounts. Ask the hotel for the refund first; a claim to the Comptroller needs the hotel's Form 00-985 assignment (Assignment of Right to Refund).
Does the 30-day clock reset if I leave for a few days?
The exemption requires 30 consecutive days at the same property. If you check out and check back in, the clock resets. However, brief absences during an ongoing reservation typically do not reset the count — what matters is that you maintain continuous occupancy of the same room or unit for 30+ days. If you need to leave temporarily for a medical procedure, keep your reservation active and your belongings in the room.
How much can I actually save with this exemption?
It depends on your city and nightly rate. In Houston, total hotel occupancy taxes are approximately 17% (6% state + 7% city + 2% county + 2% sports authority). In Dallas, the total is 15% (6% state + 9% city — the Dallas city rate increased from 7% to 9% effective Jan 1, 2023 under Prop A). On a 45-day stay at $100/night with written notice (Path 1), you save the full tax on all 45 days: $765 in Houston or $675 in Dallas. Without written notice (Path 2), you only save on days 31–45: $255 in Houston or $225 in Dallas. For a 90-day stay with written notice, savings exceed $1,500 in Houston.
Does physical presence matter for the 30-day count?
No. The exemption is based on the right to occupy, not physical presence. You can travel home for a weekend and return — as long as payment continues uninterrupted and you maintain the right to use the room, the 30-day clock keeps running.
Can I switch rooms within the same hotel?
Yes. Room changes within the same hotel do not break the exemption. The 30-day requirement applies to the property, not a specific room number.
Do I need to fill out Form 12-302?
No. Form 12-302 is for governmental and nonprofit exemptions, not for the 30-day permanent resident exemption. The hotel's own records — folios, registration cards, and reservation confirmations — are sufficient. Hotels must retain these records for 4 years.
Sources & verification notes
- Texas Tax Code Chapter 156 — Hotel Occupancy Tax — Section 156.101 (the 30-consecutive-day exemption) and Section 156.052 (the 6% state rate), Texas Legislature Online (checked October 2026).
- Texas Comptroller — Hotel Occupancy Tax and its FAQ — state administration of the tax and the 30-consecutive-day rule (checked October 2026).
- Comptroller Publication 96-224, Hotel Occupancy Tax Exemptions — the permanent-resident rule: with written notice you are exempt from the notice date; without it you pay the tax for the first 30 days (checked October 2026).
- Comptroller — Hotel Tax Refunds — ask the seller first; Form 00-985 assigns the right to refund (checked October 2026).
- City of Dallas — Hotel Occupancy Tax Increase, effective January 1, 2023 (PDF) — 9% local rate and the 2% Tourism PID fee at hotels with 100+ rooms (checked October 2026).
- Bexar County — Coliseum complex project — the November 4, 2025 proposal to raise the county venue hotel tax from 1.75% to 2% (checked October 2026).
- City and county rates: each city and county sets its own hotel occupancy tax by ordinance, and those rates change without notice, so the combined percentages above are editorial totals of the 6% state rate plus the local rates published when this page was written. Confirm the current local rate with the property. The city finance department publishes the ordinance.
By the RelocateMeTX Editorial Team · Reviewed October 2026 How we source our data →
This guide is for informational purposes only and does not constitute professional financial, legal, or medical advice.