REHOBOTH BEACH, Del. - Vacationers planning to stay in Delaware’s short-term rental properties next year should prepare for higher costs.
A new 4.5% tax increase on rentals like Airbnb and VRBO will go into effect on January 1, 2025, adding to already existing rental taxes.
For example, a $400-per-night rental booked for five nights will cost an additional $90 under the new tax.
The jump has sparked mixed reactions. “I can see that being a bit of sticker shock,” said Andrew Bailey. “I would have expected something like that to be implemented gradually.”
Rehoboth’s rental tax will effectively rise from 3% to 7.5%, a significant shift for a popular tourist destination.
“People will still come to Rehoboth,” said local Barbara Lindner. “They’ll pay the fee, but they’ll be annoyed.”
The tax is set to take effect on January 1, 2025, giving renters and property owners time to adjust before it becomes a permanent part of planning Delaware beach vacations.