Massachusetts is a favored destination for short-term rentals, offering a variety of settings from historic Boston to the peaceful beaches of Cape Cod and the scenic Berkshires. The state's short-term rental market appeals to tourists, business travelers, and those seeking a temporary getaway. Massachusetts regulates these rentals, balancing tourism promotion with the preservation of local community character, by imposing taxes and regulations. This regulatory framework is important for both renters and hosts to navigate the state's unique blend of historical charm and modern amenities in the short-term rental scene.

In Massachusetts, the state defines short-term rentals (STRs) as any rental period of 31 days or less. This definition encompasses various types of accommodations typically offered through platforms like Airbnb, VRBO, and Vacasa.

In Massachusetts, the legal definition of a short-term rental is a stay that is 31 days or less.

The tax requirements for short-term rentals include a state-wide hotel tax and additional local taxes that vary by location. The state hotel tax is 5.7% and applies to all short-term rentals. In addition to this, local municipalities have the discretion to impose their own taxes. For instance, in Boston, the city tax is 6.5%, and there's also a surcharge tax for the Massachusetts Convention Center Authority which is 2.75%. This brings the total tax in Boston to 14.95%. In other parts of the state, such as the Cape and Islands, the total tax includes a 5.7% state hotel tax, a 6% city tax, and a 2.75% surcharge tax for a wastewater treatment fund, totaling 14.45%.

These taxes apply to various types of short-term rentals, including private rentals through platforms like Airbnb, bed and breakfasts, and similar establishments. It's important to note that these taxes are typically passed on to the renters. Property owners offering short-term rentals are required to register their properties and comply with these tax regulations, including submitting their information to a public rental database. There are also additional insurance requirements for rental units under this regulation.