Transient Occupancy Tax, often referred to as the "Hotel and Motel Tax," is applicable to hotels, motels, boarding houses, travel campgrounds, and other facilities offering guest rooms rented out for continuous occupancy for less than 30 consecutive days. It is based on gross room rental.
Fairfax County levies 2% for this general Transient Occupancy Tax. (Code of Virginia, §58.1-3819)
In February 2004, the Virginia General Assembly adopted new legislation allowing Fairfax County to impose an additional 2% Transient Occupancy Tax. The revenue derived from this additional 2% is used to help promote tourism and fund a non-profit convention and visitor’s center in Fairfax County. (Code of Virginia, §58.1-3824)
Effective July 1, 2013, the Virginia General Assembly adopted new legislation to impose a new 2% Regional Transient Occupancy Tax in localities in Northern Virginia, to include Fairfax County. The new Regional Transient Occupancy Tax is a state tax, but is administered and collected by the Fairfax County Department of Tax Administration in the same manner as our current local Transient Occupancy Tax. Revenue from this new tax is dedicated to regional transportation. (Code of Virginia, §58.1-1742)
Businesses offering guest rooms as defined above are required to file a return and remit the tax amount on the last day of the month following each quarter.
- For the quarter ending March 31, the tax is due April 30
- For the quarter ending June 30, the tax is due July 31
- For the quarter ending September 30, the tax is due October 31
- For the quarter ending December 31, the tax is due January 31 the following year
Alternatively, businesses may choose to file monthly.
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.
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.
Gross room rental includes meeting rooms.
- 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 firstname.lastname@example.org or by calling 703-222-8234, option 3.