Hotel Tax in New York: Complete Guide 2026
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Hotel Tax in New York: Complete Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
New York State, and New York City in particular, imposes some of the highest hotel occupancy taxes in the United States. A guest staying in a Manhattan hotel faces a combined tax and fee burden of approximately ~14.75% plus a flat ~$3.50 per-night fee on top of the room rate. These taxes generate approximately ~$1.7 billion in annual revenue for the state and city combined, funding tourism promotion, transportation infrastructure, and the city’s general fund. Whether you are a traveler budgeting for a trip, a hotel operator managing compliance, or a short-term rental host navigating Airbnb rules, understanding the full stack of New York hotel taxes is essential.
New York Hotel Tax Rates (2026)
New York City Hotel Taxes and Fees
| Tax/Fee | Rate | Authority |
|---|---|---|
| State sales tax | ~4% | New York State |
| City sales tax | ~4.5% | New York City |
| Hotel unit fee (MCTD) | ~$1.50 per night | Metropolitan Commuter Transportation District |
| City hotel room occupancy tax | ~5.875% | New York City |
| Javits Center fee | ~$2.00 per night (rooms ~$100+) | New York City |
| Total approximate burden | ~14.375% + ~$3.50/night |
Selected New York State Localities
| Location | State Sales Tax | Local Sales Tax | Local Hotel/Occupancy Tax | Total Estimated |
|---|---|---|---|---|
| New York City | ~4% | ~4.5% | ~5.875% + ~$3.50/night | ~14.375% + fees |
| Buffalo (Erie County) | ~4% | ~4% | ~5% | ~13% |
| Albany (Albany County) | ~4% | ~4% | ~5% | ~13% |
| Syracuse (Onondaga County) | ~4% | ~4% | ~5% | ~13% |
| Long Island (Nassau/Suffolk) | ~4% | ~4.25%/~4.625% | ~3% | ~11.25%—~11.625% |
| Saratoga Springs | ~4% | ~3% | ~4% | ~11% |
New York City’s combined rate is among the highest in the nation, adding approximately ~$50 to ~$75 in taxes to a ~$350-per-night hotel room.
How New York Hotel Tax Works
State Sales Tax
All hotel room rentals in New York State are subject to the standard state sales tax of approximately ~4%. This applies to any occupancy of less than ~90 consecutive days, covering traditional hotels, motels, bed-and-breakfasts, and short-term rentals. Rentals of ~90 days or more are generally treated as residential leases and are exempt from sales tax.
City and Local Sales Tax
Local jurisdictions add their own sales tax on top of the state rate. In New York City, the local sales tax on hotel rooms is approximately ~4.5%, bringing the combined sales tax component to approximately ~8.5%. Outside the city, county-level sales taxes typically range from approximately ~3% to ~4.75%.
NYC Hotel Room Occupancy Tax
New York City imposes a separate hotel room occupancy tax of approximately ~5.875% on the room charge. This is a city-specific tax administered by the NYC Department of Finance and applies to all rooms in hotels, motels, and short-term rentals within the five boroughs. It is in addition to, not a replacement for, the sales taxes described above.
Flat Per-Night Fees
Two flat per-night fees apply in New York City. The Metropolitan Commuter Transportation District (MCTD) hotel unit fee is approximately ~$1.50 per room per night, funding regional transit. The Javits Center fee is approximately ~$2.00 per room per night for rooms costing approximately ~$100 or more, supporting the Jacob K. Javits Convention Center. Together, these add a flat approximately ~$3.50 per night regardless of room rate.
Short-Term Rentals and Airbnb
New York City’s Local Law 18, enacted in 2023, requires all short-term rental hosts to register with the Mayor’s Office of Special Enforcement and comply with strict requirements including host presence during the stay and limits of ~2 guests. Registered hosts must collect and remit the same stack of hotel taxes. Airbnb and similar platforms are required to collect taxes on behalf of hosts for stays in registered listings. Non-compliance carries fines of approximately ~$1,000 to ~$5,000 per violation.
Comparison to Other Major City Hotel Tax Rates
| City | Combined Hotel Tax Rate |
|---|---|
| New York City | ~14.375% + ~$3.50/night |
| Chicago | ~17.4% |
| Houston | ~17% |
| San Francisco | ~14% |
| Los Angeles | ~15.5% |
| Miami Beach | ~13% |
| Washington, D.C. | ~14.95% |
New York City’s rate is high but not the highest among major cities. Chicago and Houston exceed it in percentage terms, though New York’s high average room rates mean the absolute dollar amount of tax per night is among the largest.
Tips for Travelers and Hotel Operators
- Budget an extra approximately ~15% to ~18% on top of room rates in NYC. Between percentage-based taxes and flat fees, a ~$300 room will cost approximately ~$345 to ~$355 after tax.
- Extended stays may reduce your tax burden. Occupancies of ~90 consecutive days or more are exempt from sales tax, and hotel occupancy tax may also be waived, though specific conditions apply.
- Short-term rental hosts must register. Operating an unregistered short-term rental in NYC carries fines and can result in removal from booking platforms.
- Operators: file occupancy tax returns monthly. The NYC Department of Finance requires monthly filing and payment. Late penalties are approximately ~5% of unpaid tax for the first month, plus approximately ~1% per additional month.
- Check for convention and tourism district surcharges. Some areas outside NYC impose additional tourism district assessments beyond the standard hotel tax.
- Platforms collect taxes automatically in many cases. Hotels booked through Airbnb, Booking.com, and similar platforms may have taxes collected automatically, but operators should verify compliance.
- Keep receipts for business travel deductions. Hotel taxes are deductible as business expenses when travel is for legitimate business purposes, per federal tax guidelines.
Key Takeaways
- New York City hotel guests pay approximately ~14.375% in combined taxes plus ~$3.50 in flat per-night fees
- The city’s hotel room occupancy tax of approximately ~5.875% is layered on top of ~8.5% combined state and city sales tax
- Short-term rental hosts in NYC must register under Local Law 18 and collect the same taxes as traditional hotels
- Stays of ~90 consecutive days or longer may qualify for sales tax exemption
- Outside NYC, combined hotel tax rates typically range from approximately ~11% to ~13%
- New York hotel taxes generate approximately ~$1.7 billion in annual combined state and city revenue
Next Steps
- See the full New York tax picture at Taxes in New York: State Tax Guide 2026
- Compare state tax burdens at State Income Tax Rates Comparison 2026
- Learn about self-employment tax for rental income at Self-Employment Tax Guide
- Calculate your federal bracket with the Tax Bracket Calculator 2026
- Get local help: Find a CPA Near You