City of Los Angeles collected more than $275 million in taxes from Airbnb

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% 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.

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% 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
• 81% of Hosts shared 1-entire home listing in 2022
• 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

Read more about: Los Angeles, Taxes

¹The typical Host earnings amount represents the median amount of earnings for California Hosts in 2022.
²Self reported through survey to Airbnb Hosts
³Self reported through survey to Airbnb Hosts
⁴Self reported through survey to Airbnb Hosts
⁵Self reported internal Airbnb data

About Airbnb 

Airbnb was born in 2007 when two Hosts welcomed three guests to their San Francisco home, and has since grown to over 4 million Hosts who have welcomed over 1.5 billion guest arrivals in almost every country across the globe. Every day, Hosts offer unique stays and experiences that make it possible for guests to connect with communities in a more authentic way.