Currently, there is no state or local tax on vacation rentals. However, there have been many movements over the years to tax the rental of private homes on Nantucket. One compelling reason against a room occupancy tax (similar to what is charged by commercial establishments) on rentals is that they are not regulated by the Town. Hotels and inns have to comply with specific health and safety regulations and are licensed by the Town. Because they are commercial properties they have to meet certain standards and undergo annual inspections. With the rise in the use of on line booking sites, such as Air bnb, many cities and towns are eyeing the lost potential tax revenue. This is an issue that is not going away and we will do our best to keep you informed going forward.