Have you started hosting in Shalimar and wondered exactly which taxes apply to your bookings? You are not alone. Between county, state, and platform rules, it can be hard to know what you must collect and file. This quick guide breaks down Okaloosa County’s Tourist Development Tax, the other taxes that stack with it, and the steps to stay compliant without surprises. Let’s dive in.
What TDT means in Shalimar
Okaloosa County charges a 6% Tourist Development Tax on short stays across the entire county. That countywide rate applies to Shalimar and is in effect for rentals of living or sleeping accommodations for six months or less. The legal basis for this local tax comes from Florida’s Local Option Tourist Development Act and the state’s transient rental tax rules.
What rentals are taxable
Any rental of living quarters for six months or less is generally taxable. Examples include single-family homes, condos, apartments, rooms, RV parks, and boats. The taxable base is the total rental charged to the guest, which includes required cleaning fees and similar charges. Okaloosa Clerk TDT FAQ
Common exemptions
- A bona fide lease agreement for more than six months
- An occupant who has paid tax continuously for six months, then becomes exempt going forward for that same rental
- Guests with a valid Florida consumer exemption certificate when applicable
Review exemptions and documentation needs in the county FAQ. Okaloosa Clerk TDT FAQ
Total tax on a booking
Most Shalimar bookings will see three layers of tax on the rental amount:
- Florida transient rental tax: 6% under state law. F.S. §212.03
- Local discretionary sales surtax: commonly 1% in Okaloosa County. Always verify the current rate for your address using the Florida Department of Revenue lookup. DOR surtax lookup and a summary reference for Okaloosa County’s rate. Avalara county rate reference
- Okaloosa County Tourist Development Tax: 6% countywide. Okaloosa Clerk TDT FAQ
Who collects and files in Okaloosa
You must register and file TDT returns with the Okaloosa County Clerk if you receive rental income directly. The county is not contracted with platforms to collect the Okaloosa TDT. Even if a platform collects state tax and county surtax, you remain responsible for the county TDT unless your management company handles it for you.
- Register and file through the Clerk’s online portal. Okaloosa Clerk TDT program
- Returns are typically due monthly. A return is required even with no rental activity. Returns are due the first day of the month after the reporting period and become delinquent after the 20th. Some low-volume accounts may qualify for quarterly filing. Okaloosa Clerk TDT FAQ
- Penalties and interest apply to late filings. Timely electronic filers may receive a 2.5% collection allowance on the first $1,200 of tax (up to $30). Keep records for at least three years for possible audit. Okaloosa Clerk TDT FAQ
Step-by-step to get compliant
- Confirm whether your rental needs a DBPR vacation rental license based on use and frequency. DBPR vacation rental guide
- Ask your platform or manager which taxes they collect and remit. Get written confirmation for Okaloosa TDT responsibilities. Okaloosa Clerk TDT program
- If you collect rent directly, register with the Clerk and set up your online account. Okaloosa Clerk TDT FAQ
- Charge tax on the full rental amount, including required cleaning or similar fees.
- File returns on time, even for zero activity. Track platform-collected amounts versus what you must remit.
- Maintain detailed records for at least three years.
Avoid common mistakes
- Assuming Airbnb or VRBO collects Okaloosa TDT for you. The county states it does not contract with platforms to collect this tax. Okaloosa Clerk TDT program
- Forgetting to tax cleaning fees and other required charges that are part of the stay. Okaloosa Clerk TDT FAQ
- Skipping a return when you had no bookings. A zero return is still required. Okaloosa Clerk TDT FAQ
- Missing the local surtax check for your exact address. Rates can change. DOR surtax lookup
Example: taxes on a $250 stay
Here is an illustration for a $250 total rental charge in Shalimar (nightly rate plus a required cleaning fee):
Your exact obligations can vary based on your booking setup and which taxes a platform remits. Always verify your local surtax rate by address. DOR surtax lookup
Where to get answers
Ready to host with confidence?
If you want a simple, local perspective on short-term rental ownership and how taxes fit into your investment goals, you can count on an educator-style approach and clear guidance. Reach out to Shelby A Baker for neighborhood insight, property valuations, and step-by-step support as you buy or sell on the Emerald Coast.
FAQs
Do Airbnb or VRBO collect Okaloosa TDT for Shalimar hosts?
- No. Okaloosa County is not contracted with platforms to collect the county TDT, so you or your manager must remit it. Okaloosa Clerk TDT program
Are cleaning fees taxable for the Okaloosa TDT and state tax?
How often do Shalimar hosts file TDT returns and when are they due?
- Typically monthly, with returns due the first day of the following month and delinquent after the 20th. Zero returns are required when there is no activity. Okaloosa Clerk TDT FAQ
What tax rates usually apply to a Shalimar short-term booking?
- Florida transient rental tax 6%, local discretionary surtax commonly 1% in Okaloosa, plus the county TDT 6%. Verify your address’s surtax with the DOR. F.S. §212.03, DOR surtax lookup
Do I need a Florida DBPR license for my Shalimar vacation rental?
- Possibly. Licensing can apply if you rent an entire unit more than three times a year for periods under 30 days or advertise as regularly rented. Review DBPR guidance to determine your category. DBPR vacation rental guide
