Best Cities in Florida for Airbnb Tax Advantages in 2025

When it comes to operating a profitable Airbnb rental business, understanding tax advantages is just as important as choosing the right property or location. In Florida, the state imposes a 6% sales tax on short-term rentals, and many counties add a surtax—sometimes bringing the total tax rate to 12% or higher. This guide helps you find the best cities in Florida for Airbnb tax advantages, with a focus on those offering the lowest tax burdens while still maintaining good rental market potential.


We’ve organized this resource by county and city, emphasizing areas with the lowest combined state and county tax rates. Whether you're investing in a rural retreat or a growing suburban hub, this list will help you identify cities in Florida where Airbnb hosts can benefit from both favorable tax rates and promising occupancy rate trends.


Lafayette County (Total Tax Rate: 6%)


Mayo

Mayo is the county seat of Lafayette County and a hidden gem for Airbnb property investment. With a total tax rate of just 6%, it offers hosts the highest advantage in Florida. The short-term rental potential lies in its rural charm and peaceful surroundings.


Day

This unincorporated area is perfect for unique, countryside Airbnb listings. It’s an ideal location for short-term rentals geared toward off-the-grid travelers or eco-tourists looking to disconnect.


Other Communities in Lafayette County

Cooks Hammock, Hatchbend, Midway, and Buckville offer similar rental opportunities, especially for hosts interested in rustic stays and secluded escapes.


Union County (Total Tax Rate: 6%)


Lake Butler

As the county seat, Lake Butler provides easy access to lakes and outdoor recreation. It’s a solid pick for hosts wanting to combine low tax rates with scenic attractions.


Raiford

Although known for its correctional facility, Raiford offers a niche travel experience and low-cost entry for new Airbnb hosts looking to experiment in a low-risk real estate market.


Worthington Springs

This town along the Santa Fe River is a haven for eco-tourism. It’s ideal for hosts who want to offer riverfront views and nature-inspired stays.


Other Communities in Union County

Dukes stands out for its quiet, forested location and untapped potential in the short-term rental market.


Calhoun County (Total Tax Rate: 6.5%)


Blountstown

With historic charm and walkable downtown streets, Blountstown is an attractive city for heritage tourists and small-town explorers—offering a quieter, more laid-back alternative to Florida’s major travel hubs like Miami, Orlando, and Key West.


Altha

Perfect for rental business owners interested in agritourism, Altha’s rural setting offers a unique guest experience in a state dominated by beaches and theme parks.


Other Communities in Calhoun County

Clarksville, Kinard, Scotts Ferry, Frink, and Chipola provide ample opportunities for hosts to invest in vacation rentals that cater to nature lovers and campers.


Sumter County (Total Tax Rate: 7%)


The Villages

This well-known retirement community has strong short-term rental demand. With consistent visitor traffic, Airbnb hosts here enjoy a stable income stream.


Wildwood

Wildwood is rapidly growing due to its proximity to The Villages. New developments make it a smart location to invest in Airbnb property before prices rise.


Bushnell

Bushnell’s historic charm appeals to guests looking for authentic Florida experiences. Its central location also supports year-round rental income.


Center Hill

A serene escape, Center Hill’s agricultural roots and rural ambiance create opportunities for farm stays and retreat-style listings.


Webster

Home to one of Florida’s largest flea markets, Webster sees thousands of weekly visitors—a strong benefit for Airbnb investors.


Coleman

Rich in history and small-town charm, Coleman is ideal for hosts who want to provide unique, quiet vacation rental stays.


Other Communities in Sumter County

Lake Panasoffkee, Oxford, Sumterville, St. Catherine, and Tarrytown offer low-tax alternatives with diverse guest draws—from lakeside activities to quiet countryside views.


Levy County (Total Tax Rate: 7%)


Williston

A horse-friendly community with access to natural springs, Williston is a perfect setting for adventure or equestrian-themed Airbnb rentals.


Chiefland

Known as the “Gateway to the Suwannee River,” Chiefland attracts paddlers, hikers, and nature buffs. Its location gives it a competitive edge for short-term rental hosts.


Cedar Key

This coastal city is a tourist favorite for seafood, kayaking, and art festivals. Its charm and walkability make it one of the top cities for Airbnb investment in Levy County.


Bronson

The county seat combines affordability with proximity to natural attractions, making it ideal for budget-conscious Airbnb hosts.


Inglis

A Gulf-adjacent town perfect for fishing and boating guests. The setting provides both outdoor adventure and tranquil waterfront vibes.


Yankeetown

Known for its charming Miami, Old Florida feel, Yankeetown is great for hosts who want to offer a peaceful riverside stay.


Otter Creek

With fewer than 150 residents, Otter Creek is a secluded gem for hosts targeting true escape-seekers.


Other Communities in Levy County

Morriston, Manatee Road, East Bronson, East Williston, and Rainbow Lakes Estates offer proximity to springs, forests, and rivers, maximizing your hosting advantage.


How Airbnb Hosts Can Maximize Tax Advantages


Understanding Airbnb’s tax collection process is crucial for Florida hosts. Airbnb automatically collects and remits the 6% state tax, but hosts are responsible for verifying and complying with county-level taxes.

To take full advantage of these low-tax cities, hosts should:


  • Check local rental property ordinances and business licenses
  • Track rental income and maintain financial records
  • Work with a CPA familiar with short-term rental regulations in Florida and knowledgeable about trends in the short-term market

Balancing low tax rates with strong occupancy rates, property type, and guest interest within the short-term market will help ensure maximum return on investment.


Conclusion


Florida offers many cities with favorable conditions for Airbnb hosting for your vacation, but Lafayette, Union, Calhoun, Sumter, and Levy Counties top the list for tax advantages. Whether you're seeking coastal charm, rural serenity, or retirement-community buzz, these top cities provide the right mix of low taxes, local demand, and guest-friendly features, making them smart places to invest in a vacation rental property and grow your Airbnb investment portfolio.



Ready to optimize your Airbnb rental business? Consider connecting with a tax-savvy property management team or CPA who specializes in Florida’s short-term rental market.


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