Collier County voters approved an increase to the local Tourist Development Tax in the November 3, 2026 election. For owners of vacation homes and short-term rental properties in Naples and other parts of Collier County, the decision is an important update to factor into 2027 rental pricing and guest communications.
What Changed?
The county’s Tourist Development Tax will rise from 5% to 6% on taxable stays of six months or less, beginning January 1, 2027. Combined with applicable sales taxes, the total lodging tax is expected to increase from 11% to 12%. For example, the added one percentage point represents $3 on a $300 taxable rental charge.
Which Properties Are Affected?
The tourist tax applies to qualifying short-term accommodations in Collier County, including vacation rental houses and condominiums as well as hotels and other lodging. It is a tax on qualifying rental stays—not an increase in annual property taxes for homeowners. Owners and property managers should confirm how the new rate applies to their bookings and which party is responsible for collecting and remitting the tax.
What Does This Mean for Vacation Rental Owners?
Owners should review advertised nightly rates, guest quotes, booking-platform tax settings, and any reservations that extend into 2027. A higher tax does not automatically mean lower rental income, but it increases the total cost guests see when comparing properties. Clear pricing and careful property positioning may become even more important in a competitive seasonal market.
Where Will the Revenue Go?
Local reporting indicates the additional tax could generate approximately $9 million to $10 million annually. County leaders have discussed using much of the additional revenue for the Paradise Coast Sports Complex, along with eligible tourism promotion and infrastructure priorities. The specific allocations remain subject to county decisions.
Why This Matters to the Naples Real Estate Market
Vacation rental rules, operating costs, and local taxes are part of a property’s investment picture. Buyers considering a seasonal rental should evaluate projected income alongside insurance, HOA rules, maintenance, management fees, and applicable lodging taxes. Importantly, this Collier County measure should not be assumed to apply to Bonita Springs or Estero properties in Lee County.
Explore Southwest Florida Real Estate with Manny & Maggie
Whether you’re considering a Naples vacation property, a seasonal home in Bonita Springs, or a primary residence in Estero, the Manny & Maggie Team at Keller Williams can help you understand local market considerations and find a property aligned with your goals.
Contact Maggie Castro at 239-287-3741, follow @maggiecastro_realestate, or visit EsteroBonitaNaplesHomes.com.
