San Diego Implements New Transient Occupancy Tax (TOT) Rates Starting May 1, 2025
San Diego property owners should be aware of upcoming changes to the Transient Occupancy Tax (TOT). The City of San Diego has successfully implemented Measure C (Ordinance O-21143), introducing new TOT rates that will take effect on May 1, 2025.
This tax adjustment is designed to generate additional revenue for citywide initiatives, including addressing homelessness, street repairs, and enhancements to the San Diego Convention Center. If you own rental properties, commercial buildings with short-term leasing arrangements, or other taxable accommodations, understanding these changes is crucial to staying compliant and avoiding penalties.
New TOT Rates by Zone
The updated TOT rates vary by location and fall into three zones:
11.75%
12.75%
13.75%
To determine the tax rate for your specific property, the City of San Diego has provided an interactive tax zone lookup map. You can access it here.
How This Affects Property Owners
Starting May 1, 2025, all property owners required to collect TOT must apply the new rate when rent is collected. It is the responsibility of the owner or property manager to ensure the tax is collected and remitted accurately to the City of San Diego, whether payments are processed directly, through a property management company, or via online platforms.
Key Action Items for Property Owners
Check Your Tax Zone – Use the City’s interactive tax zone lookup tool to confirm your rate.
Update Your Rental Agreements – Ensure your pricing reflects the new tax increase and update any lease terms accordingly.
Ensure Proper Collection & Remittance – TOT must be collected at the time rent is paid and remitted on time using the updated TOT return form.
Register for Notifications – Stay informed by signing up for email updates from the City of San Diego.
Resources & Next Steps
For further details on TOT compliance, payment submission, and FAQs, visit the official San Diego TOT website. If you have any questions, contact the City’s TOT office at sdtot@sandiego.gov.
Stay ahead of these changes to ensure compliance and seamless operations for your property investments! And, as always, If you have any questions on how this affects your property, feel free to contact us.
The information in this blog is for general informational purposes only and should not be your sole basis for financial or investment decisions. While ACI Apartments uses reliable sources for data and analysis, you should verify all information independently. This blog is not a comprehensive report on all changes to local, state, or federal laws affecting property owners and managers. Laws may have changed or been misinterpreted since publication. Always consult legal counsel or a licensed CPA before making decisions. ACI Apartments is not liable for actions taken based on this content.
