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Understanding Taxes for Direct Bookings

Understand how taxes are calculated, shown, and charged when booking directly

Written by Dawn Ginie Santoyo

When you book directly, taxes are calculated based on the property location and are clearly shown before you complete your booking.

This article explains when taxes appear, how they are calculated, and how they are charged.


When Taxes Are Shown

Taxes are shown during the booking process before you submit your request.

Depending on where you are in the flow:

  • You may first see a total before taxes

  • Then see estimated taxes

  • Before confirming, you’ll see the final calculated tax amount

Booking checkout screen showing nightly rate, fees, and a separate line item for taxes

Taxes are always displayed as a separate line item or clearly labeled in the price breakdown.


How Taxes Are Calculated

Taxes are calculated based on:

  • The property’s location

  • Local tax rules (such as state, city, or lodging taxes)

  • The length of your stay

Multiple taxes may apply to a single booking (for example, state and local taxes).

The final tax amount is calculated just before you confirm your booking to ensure accuracy.


When Taxes Are Charged

How taxes are charged depends on how you complete your booking:

Booking request flow

  • You enter your payment details when submitting your request

  • Taxes are included in the total shown at checkout

  • The payment (including taxes) is only captured if the host accepts your booking

Payment link (sent by the host)

  • Taxes are included in the total shown in the email

  • You pay the full amount (including taxes) when completing the payment


Where You Can See Taxes

You can review taxes in:

  • The booking checkout page

  • The booking confirmation email

  • The Guest Portal (after your booking is confirmed)

Each location shows taxes as part of the booking total.


What Types of Taxes May Be Included

Depending on the location, taxes may include:

  • Sales or use taxes

  • Lodging or occupancy taxes

  • Local or tourism taxes

The exact types and rates vary by property and location.


Important Things to Know

Taxes are always shown to you before you complete your booking.

  • Taxes are calculated automatically based on the property location

  • The final tax amount is confirmed before you submit your booking

  • Taxes are included in the total you pay

  • Multiple taxes may apply depending on local regulations

  • The total amount shown at checkout includes all applicable taxes

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