Under the Uttar Pradesh Bed and Breakfast and Homestay Policy, property owners running registered homestays will no longer have to pay commercial taxes. Instead, they'll be charged house tax, water tax, sewer tax, and electricity bills at regular domestic rates.
A proposal has already been agreed upon at the top level and will soon be presented before the cabinet for final approval.
This initiative is designed to support:
Pilgrims and foreign tourists visiting religious and mythological destinations in UP
Development of tourism infrastructure
Boost local economy by generating new income and employment opportunities
Enhance visitor experiences by offering high-standard, budget-friendly stays
Here’s what registered homestay operators will benefit from:
No commercial tax — only domestic rates for all utilities
Financial incentive of up to ₹10,000
Free training programs to help hosts manage and scale their business
State-wide implementation, across urban and rural areas
To avail benefits under the new policy, here are the key guidelines:
Only 1 to 6 rooms or up to 12 beds can be rented
Maximum of two-thirds of the total rooms in the house can be used
Hosts must register their property officially
Guests should be provided with clean rooms, quality food, toiletries, safe drinking water, and local transportation if needed
If the room count exceeds the limit, the property will not qualify as a homestay under this scheme.
This new tax exemption scheme by the UP government is not just a relief for homestay providers but also a strategic move to promote tourism, empower locals, and boost hospitality standards in the state. With easier registration, financial aid, and training, homestay hosts now have a real opportunity to turn their property into a profitable venture.
