Starting January 1, 2026, Worcester County will apply a higher lodging tax on short-term rentals. This follows a request from the Ocean City City Council to implement this change early in 2025.
The tax will rise from 5% to 6% for rentals lasting four months or less, which includes hotels, motels, condos, cottages, apartments, and similar overnight accommodations.
This lodging tax is added to the total cost paid by the guest. Rentals exceeding four months by the same tenant will not be subject to this tax.
Property owners who rent out spaces must register with the county and submit monthly room tax reports. If owners manage their rentals directly, they should reach out to the Worcester County Treasurer’s Office to obtain the necessary forms. If a real estate agent or rental company manages the property, they will be in charge of filing the reports and paying the taxes.
The county sends out room tax reports every three months, which need to be submitted by the 21st of the following month after the rental period. Officials noted that the lodging tax should be paid separately from Maryland’s retail sales tax, which also concludes on Friday.
County officials warned that late payments may incur fines. Taxes overdue by more than a month will have a 10% penalty, and additional interest will be added each month until the total amount is settled.
The new 6% lodging tax will be implemented throughout the county on January 1, 2026.
“`
