Short Term Rental Tax 

On January 1, 2019 a new short term rental tax went into effect.  For the Town of Falmouth, the current breakdown is as follows: 

  • 5.7% to the state.
  • 6% to Falmouth via the state.  This is the same rate that hotels and B&Bs currently pay.
  • 2.75% to Cape Cod Water Quality Fund via a state water commission, for appropriate wastewater/water quality projects.  
  • 3% of the total rent upon each transfer of occupancy of professionally managed units, Community Impact Fee for Affordable Housing.

The law requires that whoever collects the payment for the rental, also collect the tax and remit it to the state.  

The following are links to the Bill information and DOR Website FAQs.