Bend, OR STR Tax Guide: What Airbnb Hosts Need to Know in 2026
No credit card required
Bend has become one of the Pacific Northwest's premier outdoor recreation destinations, drawing year-round visitors for Mt. Bachelor skiing, Cascade Lakes cycling, and trail running — and the STR market has grown accordingly. Oregon has no sales tax, but it does levy transient lodging taxes and a high state income tax (up to 9.9%), making the deduction strategy for Bend hosts especially important.
Transient Room Tax in Bend
Oregon has no general sales tax, but it levies Transient Lodging Tax (TLT) at the county and city level. For Bend hosts, this means:
| Tax Layer | Rate | Remitted To |
|---|---|---|
| Deschutes County TLT | ~8.0% | Deschutes County |
| City of Bend TLT | ~3.8% | City of Bend |
| Combined Rate | ~11.8% | Two separate filings |
Airbnb collects and remits transient lodging taxes in Oregon for properties listed on its platform. Hosts who accept direct bookings must register separately with Deschutes County and the City of Bend and remit taxes on their own filing schedules.
Even with platform collection, confirm which taxes Airbnb is collecting for your specific property. County and city taxes are remitted to different agencies — failing to remit one while assuming it's covered can create compliance gaps.
Oregon State Income Tax on STR Revenue
Oregon imposes state income tax at graduated rates up to 9.9% on ordinary income. For a Bend host earning $60,000 in net STR income, the Oregon state income tax on that amount could reach $5,000–$6,000 per year. Oregon state tax filing is handled via Oregon Form OR-40, and STR income reported on your federal Schedule C flows through to Oregon taxable income.
Oregon conforms to federal depreciation rules, which means bonus depreciation available at the federal level generally applies on your Oregon return as well. This is a meaningful advantage compared to states like California that do not conform.
For the full Oregon STR tax picture including Portland-area surcharges, see our Oregon STR tax guide.
Bend STR Permit Requirements
The City of Bend requires a Short-Term Rental (STR) license for all properties renting to guests for 30 days or fewer. The process involves:
- Submitting a license application to the City of Bend Development Services
- Passing a life-safety inspection (smoke detectors, CO detectors, fire extinguisher, egress)
- Obtaining a Business License from the City
- Registering for Transient Room Tax with both the City and Deschutes County
STR licenses in Bend are property-specific and non-transferable. Properties in unincorporated Deschutes County (outside city limits but in the Bend area) follow county regulations, which may differ from city rules on permit requirements and density limits.
Bend Market Snapshot
ADR: $200–$300/night for standard properties; $350–$500+/night for mountain-view, ski-adjacent, or luxury properties near Mt. Bachelor.
Year-round demand drivers:
- Winter (Dec–Mar): Mt. Bachelor ski season — one of the top ski mountains in the Pacific Northwest
- Summer (Jun–Sep): Cascade Lakes cycling, hiking, kayaking on the Deschutes River, and craft brewery tourism
- Spring/Fall: Shoulder seasons with meaningful demand from hikers, mountain bikers, and fly-fishers
Bend's year-round activity calendar means more consistent occupancy than purely seasonal markets. A well-managed property can achieve 70–80% annual occupancy.
Key Deductions for Bend STR Hosts
Outdoor Recreation Equipment
Many Bend STR hosts provide outdoor recreation equipment for guests: bicycles, ski storage, kayak racks, camping gear for the garage. Equipment provided to guests as part of the rental is deductible — either immediately under the de minimis safe harbor for items $2,500 or less per item, or as depreciable assets above that threshold.
Snow Removal
Bend receives significant snowfall during ski season. Snow removal services, salt/sand supplies, and snowblower maintenance are fully deductible operating expenses. These costs are particularly relevant for properties in higher-elevation areas near Mt. Bachelor.
Hot Tub Maintenance
A hot tub is a top-ranked amenity for Bend mountain properties. Weekly hot tub service ($80–$150/month), chemical supplies, and equipment repairs are deductible. Hot tub replacement is a depreciable asset, typically classified as personal property (5-7 year schedule).
No credit card required
Heating Costs
High desert winters in Bend mean significant heating bills. Natural gas, propane, or electric heating costs during rental periods are deductible. Wood or pellet stoves add both charm and fuel costs — track wood delivery or pellet purchases as operating expenses.
Wildfire Insurance
Central Oregon's high desert environment faces wildfire risk. Standard homeowner's insurance may not fully cover wildfire exposure. Additional wildfire coverage premiums are deductible operating expenses. Defensible space maintenance (vegetation clearing, fire-resistant landscaping) is also deductible.
Oregon conforms to federal bonus depreciation, unlike California. This means Bend hosts can take large first-year depreciation deductions on personal property (furniture, appliances, hot tubs, equipment) at both the federal and state level — potentially saving $2,000–$5,000+ in Oregon state tax in the year assets are placed in service.
Track Your Bend STR Expenses Year-Round
DeductFlow categorizes outdoor equipment, snow removal, hot tub costs, and every other Bend-specific expense automatically. Stop leaving deductions on the table.
Start Free →Pro from $19/month or $149/year · 7-day free trial · No credit card required
Related Reading
No credit card required
Disclaimer
This article is for informational purposes and does not constitute tax, legal, or financial advice. Tax rules vary based on your specific situation, filing status, entity structure, and jurisdiction. Always consult a qualified CPA or tax professional for guidance on your specific tax situation. IRS rules and thresholds are subject to change — verify current requirements at irs.gov before filing.