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How Commission, Taxes, and Payout Work

How Commission, Taxes, and Payout Work

  • 10 nights × $100 = $1,000 lodging
  • $150 cleaning fee
  • 14.45% tax rate on lodging
  • Payment processing fee = 2.9% + $0.30 per transaction
  • Capehost management fee varies by contract. This example uses 18%
  • Airbnb platform fee in this example = 15.5% of (lodging + cleaning)
  • VRBO/HomeAway platform fee in this example = 5% of (lodging + cleaning)
Step Airbnb VRBO/HomeAway Direct booking Comments
Lodging $1,000.00 $1,000.00 $1,000.00
  • Nightly rate × number of nights
Cleaning fee $150.00 $150.00 $150.00
  • Pass-through cost
Tax charged to guest $144.50 $144.50 $144.50
  • Example effective tax rate = 14.45% of lodging
Total paid by guest $1,294.50 $1,294.50 $1,294.50
  • Lodging + cleaning + taxes
Platform fee -$178.25 -$57.50 $0.00
  • Airbnb. Host fee in this example is 15.5% of lodging + cleaning
  • VRBO/HomeAway. Host fee in this example is 5% of lodging + cleaning
  • Direct booking. No platform fee
  • Guest-facing fees can still differ by channel
Payment processing fee $0.00 -$37.84 -$37.84
  • Fee = 2.9% + $0.30 per successful charge
  • Applied on VRBO/HomeAway and direct bookings in this example
  • Airbnb processes payments internally, so there is no processing fee here
Cleaning payout -$150.00 -$150.00 -$150.00
  • Cleaning fee is paid out to the cleaning team
Taxes remitted by platform $144.50 $0.00 $0.00
  • Airbnb. Taxes are collected and remitted by the platform in this example
  • VRBO/HomeAway. Final payout looks higher because tax funds stay in the payout
  • Direct booking. Final payout looks higher because tax funds stay in the payout
  • Owners still need to remit taxes for VRBO / HomeAway and direct bookings
Capehost commission -$147.92 -$169.65 -$180.00
  • This example uses an 18% management fee
  • Commission is calculated on (lodging - platform fee)
  • Cleaning, taxes, Stripe fees, and security deposits are excluded
Owner payout (includes taxes on some channels) $673.83 $879.51 $926.66
  • Airbnb payout is lower because taxes are remitted by the platform
  • VRBO/HomeAway and direct payouts are higher because tax funds are included
  • Owners must still remit taxes on VRBO/HomeAway and direct bookings
Owner revenue after taxes $673.83 $735.01 $782.16
  • Shows the owner's actual revenue after taxes are paid
  • VRBO/HomeAway and direct payouts include tax funds that must later be remitted
  • Airbnb already remits taxes, so the number is the same as the payout above

Security deposit

  • Airbnb. Not used in this example
  • VRBO/HomeAway and direct bookings may place an authorization hold on the guest card
  • If the hold is released, there is no payment processing fee
  • If part of the deposit is captured for damages, payment processing fees apply only to the captured amount

Why VRBO/HomeAway and direct look higher

  • Tax funds remain inside the payout
  • Those funds are not extra profit
  • Owners still need to send tax payments to the local authority

How to read this example

  • This is a simplified owner-facing example
  • Real reservations may use installment payments
  • Platform fees, tax rules, and management fee percentages can vary by property and contract