Seven years after entering into a voluntary tax collection agreement, Airbnb today announced it has collected and remitted more than $275 million in Transient Occupancy Taxes (TOTs) to the City of Los Angeles between August 2016 and June 2023. This includes an estimated $19.7 million in tax revenue this year alone.
The agreement, which went into effect August 1, 2016, allows Airbnb to collect and remit the city’s 14 percent lodging tax on behalf of its Host community. Officials initially estimated the voluntary collection agreement would generate $13 million in annual revenue for the City of Los Angeles, however, those projections were surpassed in the first five months of the agreement.
“Home sharing has allowed Angelenos to help make ends meet while contributing hundreds of millions of dollars in tax revenue that helps fund critical city services.”
Justin Wesson, Airbnb’s Senior Public Policy Manager in California
The annual revenue has helped give City Officials the resources and flexibility needed to fund key community programs and low-income housing initiatives throughout the years and continues to be a vital source of funding to help the City cover the cost of general services like public safety, street repair, and trash removal.
The voluntary tax collection agreement is part of Airbnb’s efforts to support communities around the world. These tourism taxes are a vital source of funding for local governments and the communities they support, especially in areas that saw revenue streams decimated by the pandemic.
In contrast, tourism taxes collected on behalf of Airbnb Hosts increased by almost 130 percent since 2019 in the US.
Airbnb community in Los Angeles City
- A typical Host earned over $21,000 in 20221
- Total Host earnings in 2022 were over $375 million
- 66% of Hosts say money earned by hosting on Airbnb has helped them stay in their home2
- 74% of Hosts say they plan to use the money earned by hosting to cover the heightened cost of living3
- 60% of Hosts say they used money earned through hosting to cover needs such as food and other costs that have become more expensive4
- 54% of Hosts are women5