Tourist Tax In Destin: What Owners Must Know

If you rent your Destin home for even a weekend, you are a tax collector. The rules and rates are not hard, but they are specific to Okaloosa County and they change by district and platform. You want clean compliance that protects your income and keeps guest pricing clear. This guide gives you the essentials, a simple checklist, and an example you can follow. Let’s dive in.

What the tourist tax covers in Destin

Short stays of six months or less are treated as transient rentals in Florida. That makes them taxable. The typical taxes on a Destin booking include:

• Florida state sales tax at 6 percent on the rental amount. See the Florida Department of Revenue for state rates and local options. State sales tax and local option overview.
• A county discretionary sales surtax that depends on the address. Many Okaloosa addresses show a combined state plus surtax of about 7 percent. Confirm by address. Okaloosa County combined rate reference.
• The Okaloosa County Tourist Development Tax, often called the bed tax, on rentals of six months or less. The rate depends on the district where your property sits. Check the county’s map and FAQ for the current percentage. Okaloosa TDT FAQ.

Florida’s administrative rule explains what counts as a transient rental and what charges are taxable. Florida rule 12A-1.061.

Who collects which tax

Different offices handle different taxes, so you need two tracks:

• The Florida Department of Revenue administers state sales tax and the county discretionary surtax. You register with the DOR and file those returns with the state. Florida DOR registration and forms.
• The Okaloosa Clerk of Court & Comptroller administers the Tourist Development Tax. You register and remit TDT directly to the county through its online portal. The county states it is not contracted with platforms to receive TDT on your behalf. Owners must confirm what, if anything, a platform collects. Okaloosa TDT main page.

Districts and how to find your TDT rate

Okaloosa County uses districts that determine which TDT rate applies. The county publishes a map showing the Current District and the Expansion Area. Always verify which area your Destin address falls into and then confirm the effective rate in the county FAQ.

• Start with the official district map. Okaloosa TDD district map.
• Then check the FAQ for the rate that applies to your district and the effective date. Okaloosa TDT FAQ.

Rates and boundaries have been adjusted in recent years, so always check both resources before you set pricing.

What counts in the taxable amount

Florida taxes the total rental charge, which usually includes required fees.

• Taxable: base rent, required cleaning fees, resort or amenity fees, mandatory pet fees, and similar charges the guest must pay to obtain the stay.
• Security deposits: refundable deposits that are returned are generally not taxable. If any part is kept and applied to rent or damages, that portion can be taxable. Keep clear records and show how you applied funds on your invoices.

For definitions and examples, see the DOR rule on rentals and room charges. Florida rule 12A-1.061.

Registration and filing checklist

Follow these steps to stay compliant from day one:

1. Confirm your exact rates

• Find your property on the county’s TDD map and note whether you are in the Current or Expansion area. Then verify the TDT percentage and effective date in the county FAQ.
  • Map: Okaloosa TDD district map
  • FAQ: Okaloosa TDT FAQ

2. Register

• County TDT: create your account and register with the Okaloosa Clerk’s office. Okaloosa TDT main page
• State taxes: register with the Florida DOR to collect and remit sales tax and the local discretionary surtax. Florida DOR registration and forms

3. Confirm who collects on your listings

• Do not assume a platform collects the county TDT. Okaloosa states it is not contracted with platforms for TDT. Get written confirmation of exactly which taxes a platform collects and remits on your specific listing. Okaloosa TDT main page

4. Price and communicate clearly

• Show taxes as separate lines on quotes and invoices so guests understand the total and you have documentation. Many mandatory fees you charge are taxable under state rules. Florida rule 12A-1.061

5. File and pay on time

• Okaloosa requires monthly TDT returns. Returns are due the first day of the month and are delinquent after the 20th. File even if there was no rental activity. County filing FAQ

6. Keep records

• Keep invoices, rental agreements, platform statements, and proof of any refunds for at least three years. County filing FAQ

Deadlines, penalties, and the collection allowance

Okaloosa requires monthly filing for TDT. Your return is due on the first day after the close of the period and becomes delinquent after the 20th. Late returns can trigger penalties and interest. The county also offers a small collection allowance when you file and pay on time through the portal.

• Filing frequency, deadlines, and records: County filing FAQ
• County procedures, penalties, and collection allowance: Okaloosa TDT main page

Example tax calculation for a Destin stay

Use this as a simple model, then plug in your property’s exact TDT rate and surtax.

• Booking: $200 nightly rent
• State sales tax 6 percent: $12.00 State rate reference
• County discretionary surtax about 1 percent: $2.00 Okaloosa combined rate reference
• Okaloosa TDT example 6 percent: $12.00 TDT rate guidance
• Total taxes: $26.00, total to guest: $226.00

If your TDT is 5 percent instead of 6 percent, total taxes would be $24.00. Always verify your district and the current percentage before quoting guests.

Pro tips for smooth compliance

• Itemize every charge. Break out rent, taxable fees, and taxes on each invoice for clean records.
• Sync platform reports. Download monthly statements and match them to your filings so you can document what was collected and remitted.
• Get platform confirmation in writing. Keep a copy of any platform email or settings page that states which taxes it collects on your listing.
• Keep a three-year file. Store agreements, invoices, and proof of refunds for at least three years in case of audit. County filing FAQ

Ready to acquire or reposition a Destin or 30A vacation rental with confidence on taxes, pricing, and guest experience? Reach out to Tom Fitzpatrick for discreet, data-driven guidance on selecting and optimizing income-producing coastal property.

FAQs

What taxes apply to short-term rentals in Destin?

• Florida state sales tax at 6 percent, a local discretionary surtax that varies by address, and the Okaloosa County Tourist Development Tax on rentals of six months or less.

Who handles state versus county taxes for Destin rentals?

• The Florida Department of Revenue handles state sales tax and the discretionary surtax, while the Okaloosa Clerk of Court & Comptroller administers and collects the county TDT.

Do Airbnb or Vrbo collect the Okaloosa TDT for me?

• Not by default. Okaloosa states it is not contracted with platforms to receive TDT, so you should register and be ready to remit unless you have written confirmation of platform collection.

Are cleaning fees taxable on Destin rentals?

• Yes, when a fee is required to obtain the accommodation, Florida treats it as part of the taxable total rental charge.

How often do I file the Okaloosa TDT return?

• Monthly, with returns due the first day of the following month and considered delinquent after the 20th. File even with no rental activity.

Do long-term leases owe the tourist tax in Okaloosa?

• Rentals with a bona fide written lease longer than six months are generally not treated as transient after the sixth month, so they are typically exempt from the tourist tax.