Avalara MyLodgeTax > Blog > State and Local News > Demand is high for Kansas City short-term rentals — and local governments are looking to reap the benefits

Demand is high for Kansas City short-term rentals — and local governments are looking to reap the benefits

  • Mar 10, 2026 | Jennifer Sokolowsky

Kansas City is one of the host cities of FIFA World Cup 2026.

As the 2026 FIFA World Cup approaches, short-term rental (STR) operators in the Kansas City, Missouri, area are seeing opportunities — and local governments are seeking to take advantage.

The World Cup is expected to bring 6.5 million fans to venues across the United States, Canada, and Mexico. Kansas City is one of the U.S. communities hosting events, along with Atlanta, Boston, Dallas, Houston, Los Angeles, Miami, New York/New Jersey, Philadelphia, the San Francisco Bay Area, and Seattle. Demand for STRs in Kansas City are up 292% year over year, the highest increase in the U.S., according to STR data company AirDNA.

Communities in the Kansas City area are taking action to respond to anticipated STR demand. Kansas City changed its STR rules to create a new category of STRs for major events. If a city declares a major event, residents can apply for a special STR permit and pay a $50 permit fee rather than the usual $200 fee. Otherwise, the city’s normal rules still apply. STR operators in Kansas City are required to register with the city and collect the city’s Short-Term Rental tax and Occupancy Fee from guests on stays of less than 30 consecutive days. 

Nearby Parkville, Missouri, has lifted restrictions on STRs from May 2026 through July 2026 to allow more STRs in the city for World Cup events. STR operators must still apply for a permit with the city and pay a fee. Operators must also register with the city for guest room taxes, collect the taxes, and pay them monthly.

Shawnee, Kansas, recently raised its transient guest tax to 9%, a rate on par with other cities in the Kansas City metropolitan area, including Mission, Olathe, and Overland Park. The guest tax applies to the rental of more than two bedrooms for 28 consecutive days or less, with the funds used for tourism and economic development. The city expects the increase to generate around $115,000 more per year for tourism expenses. One example under discussion is a circulator bus route that will operate during the World Cup.

In Lawrence, Kansas, the city will lift its limits on the number of STRs allowed to increase the supply of accommodations available for the event. Normally, operators are allowed a maximum of three STR licenses; from May 25 through July 26, 2026, there will be no limit on the number of licenses for each operator. The city will also temporarily allow non-owner-occupied STRs in the city’s R-1 and R-2 zoning districts. STRs rented out under the temporary rules are still required to follow the city’s STR regulations, including undergoing inspections and collecting transient guest tax from guests. Lawrence increased its transient guest tax to 8% in the summer of 2025 to capitalize on the expected influx of World Cup visitors in 2026.

World Cup hosts must follow lodging tax rules

STR operators in both Kansas and Missouri are required to comply with lodging tax regulations. Missouri STRs are subject to state lodging taxes, including sales and tourism taxes, as well as any local lodging taxes. STR operators are required to register with the Missouri Department of Revenue, collect the taxes from their guests, and remit them to tax authorities. 

In Kansas, all state and local lodging taxes are administered by the Kansas Department of Revenue. Operators are required to register with the department, collect lodging taxes, and file lodging tax returns. Airbnb and Vrbo collect state lodging taxes on behalf of their Kansas and Missouri listings at the time of payment.

Get help from Avalara

Avalara is the agentic tax and compliance leader, supporting 200,000+ direct and indirect customers in 75+ countries. For STR owners and property managers, Avalara MyLodgeTax helps automate lodging tax registration, rate calculation, filing, and remittance. By simplifying complex occupancy tax requirements, Avalara helps STR businesses reduce risk and save time as they grow.

For more on short-term rental lodging tax in Kansas and Missouri, see our state vacation rental tax guides. If you have tax questions related to your STR, drop us a line and we’ll get back to you with answers.


Lodging tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Jennifer Sokolowsky
Avalara Author Jennifer Sokolowsky
Jennifer Sokolowsky writes about tax, legal, and tech topics. She has an extensive international background in journalism and marketing, including work with The Seattle Times, The Prague Post, Avvo, and Marriott.
Avalara logo featuring a globe surrounded by colorful lines and swirls

Learn more about MO lodging tax rules