Transient Occupancy Tax is applicable to any public or private hotel, inn, apartment hotel, hostelry, tourist home or house, motel, rooming house, any place that offers Short-Term Lodging as defined in Article 20, Part 3 of the Fairfax County Zoning Ordinance, or other lodging place within the County offering lodging for one or more persons at any one time, and the owner and operator thereof, who, for compensation, furnishes lodging to any transients, rented out for continuous occupancy for less than 30 consecutive days. It is based on gross receipts from room rental.
The total Transient Occupancy Tax in Fairfax County is computed as follows:
- 2% Transient Occupancy Tax (Code of Virginia, §58.1-3819). These funds are used to support general county expenditures. (This tax does not apply to stays in properties located within any town imposing a tax on transient occupancy.)
- 2% Transient Occupancy Tax (Code of Virginia, §58.1-3824). These funds are used to help promote tourism and fund a non-profit convention and visitor’s center in Fairfax County.
- 2% Transportation District Transient Occupancy Tax (Code of Virginia §58.1-1743). These funds are dedicated to regional transportation. (This tax will increase to 3% effective May 1, 2021).
Effective October 1, 2018, all businesses offering guest rooms as defined above are required to file a return and remit the tax amount monthly on or before the last day of the month covering the amount of tax collected during the preceding month. A monthly return must be filed even if no taxes are due.
Calculation of Tax
The total Transient Occupancy Tax for businesses in Fairfax County is calculated at the rate of 6% (2% for general transient occupancy tax + 2% for tourism + 2% for regional transportation) on the gross room rental, less any exempt rentals and refunds. (Effective May 1, 2021 the total tax levied will be calculated at the rate of 7% (2% for general transient occupancy tax + 2% for tourism + 3% for regional transportation)
The total Transient Occupancy Tax levied by Fairfax County for businesses in the Towns of Clifton, Herndon, and Vienna is calculated at the rate of 4% (2% for tourism + 2% for regional transportation) on the gross room rental, less any exempt rentals and refunds. This is in addition to Transient Occupancy Tax levied by the towns. (Effective May 1, 2021 the total tax levied will be calculated at the rate of 5% (2% for tourism + 3% for regional transportation)
- Rentals paid to any hospital, medical clinic, convalescent home, or home for the aged
- Rentals over 30 days
- Rentals made to the Federal Government
- Rentals made to bona fide diplomats
If the business fails to file the return on time, penalty and interest will be assessed. The penalty is 5%; for each month delinquent, the interest is 0.42%.
You may download the Transient Occupancy Tax form for the current and three prior years for Fairfax County or for the towns of Clifton, Herndon, and Vienna from our Forms page.
Questions regarding the Transient Occupancy Tax may be sent to the Personal Property and Business License Division at email@example.com or by calling 703-222-8234, option 4.