Bed Tax

Airbnb bed tax in place - Is Airbnb still a profitable option?

The Auckland council has introduced a new targeted rate for online accommodation providers like Airbnb to bring them in line with hotels and motels.

Under the new scheme which has left more than a few Airbnb vendors furious and out of pocket Auckland Airbnb properties will now be taxed as a business. Properties rented out for more than six months of a year will be treated like businesses and charged up to $7200 inline with Hotel rates. Overall the tax will vary depending on how many nights you rent out the property during the year as per the graph below.

For more info on "APTR" go here

How it works:

Number of nights booked per year

​APTR rates level

​General rates level

​Up to 28 ​Does not apply ​Continue to be rated as residential
​29 to 135 ​25% of APTR if the property is in zone A or B ​Rated as 75% residential and 25% business
136 to 180 ​50% of APTR if the property is in zone A or B ​Rated as 50% residential and 50% business
​More than 180 ​100% of the APTR if the property is in zone A or B ​Rates as business


The new tax - the Accommodation Provider Targeted Rate (APTR) - was being applied from July 2018, because all rates are set on the basis of what happens the previous year. So in effect you will be getting a bill for the last 12 months if you had registered your property as an Airbnb in the 2017/18 year period.

Simple enough just don't tell them you're doing it? If you do not register your Airbnbs with the Council, do not think you will get away with it forever. According to their website they will be searching websites and working with commercial accommodation providers and body corporates to help identify residential property owners involved.

We think a $7,000 tax every year on your Airbnb property would take the meat out of using the short stay service if you have chosen to Airbnb your investment property full time and at the least will make you think twice if the effort is worth it. If you want us to do the numbers and see how we could take the problem off your hands and provide a consistent income with no hassle why not give us a call on 09 3735400 or call Jay direct on 021 836087.