NYC Hotel Room Occupancy Tax: Rates, Who Collects It and When to File
NYC’s hotel room occupancy tax is 5.875% of the room rent plus up to $2 a night. Who collects it, the permanent resident exemption and filing deadlines.
By Seayora Editorial Team · Published · Facts checked · 3 min read
Short answer: New York City taxes hotel room occupancy at 5.875% of the room rent plus a flat amount of 50 cents to $2.00 a day, depending on the rent, collected from guests by hotel operators and by room remarketers. The 5.875% rate is extended through November 30, 2027. A permanent resident, someone who occupies a room for at least 180 consecutive days, is exempt, and New York State separately collects sales tax and a $1.50 per unit per day hotel unit fee.
Key takeaways
- Rooms renting for $40 or more a day pay $2.00 a day plus 5.875% of the rent; cheaper rooms pay a smaller flat amount.
- Hotel operators and remarketers who resell rooms must collect the tax.
- Occupants who stay at least 180 consecutive days are permanent residents and are exempt.
- Returns are quarterly, due March 20, June 20, September 20 and December 20; small facilities file once a year.
How much is the NYC hotel tax?
| Rent for the room per day | Flat amount | Plus |
|---|---|---|
| $10 or more, but less than $20 | 50¢ | 5.875% of the rent |
| $20 or more, but less than $30 | $1.00 | 5.875% of the rent |
| $30 or more, but less than $40 | $1.50 | 5.875% of the rent |
| $40 or more | $2.00 | 5.875% of the rent |
For a suite, the flat amount applies to each room in the suite, plus 5.875% of the rent for the whole suite (NYC Department of Finance). A $250 room night owes $14.69 of percentage tax and $2.00 of flat tax, $16.69 in city hotel tax, before state and city sales tax and the state fee.
How long will the 5.875% rate last?
The percentage rate was raised to 5.875% in 2009 and has been extended in four-year steps since; on November 17, 2023 it was extended to November 30, 2027 (DOF Hotel Room Occupancy Tax report). Since 2009 the tax has also applied to the markup on rooms rented through online travel companies and other resellers.
Who must collect and file it?
Hotel operators collect the tax from occupants, and room remarketers collect it when a room is bought through them. Operators file quarterly returns: December through February is due March 20, March through May is due June 20, June through August is due September 20, and September through November is due December 20. Small facility operators file once a year, for March 1 to February 28, due March 20. The tax year runs from March 1 to the end of February.
Who is exempt?
A permanent resident, defined as someone who occupies a room for at least 180 consecutive days, does not pay the tax. Check the Department of Finance’s page for the full list of exemptions before treating a stay as exempt.
What else does a guest pay?
New York State and New York City sales taxes, collected by the state, and the New York State hotel unit fee of $1.50 per unit per day. Short-term rental hosts should also check the city’s registration rules and their building’s certificate of occupancy before renting rooms: a class A multiple dwelling is for permanent residence, which Multiple Dwelling Law § 4 ties to occupancy of 30 consecutive days or more.
Frequently asked questions
What is the hotel tax rate in New York City?
The city hotel room occupancy tax is 5.875% of the room rent plus $2.00 a day for rooms of $40 or more, on top of state and city sales tax and the state’s $1.50 per unit per day fee.
Is a long-term hotel guest exempt from the NYC hotel tax?
Yes, once they qualify as a permanent resident, meaning they occupy the room for at least 180 consecutive days.
Do online travel companies pay NYC hotel tax?
Room remarketers must collect the tax when a room is bought through them, and since 2009 the tax has applied to their markup.
Sources
- Hotel room occupancy tax, NYC Department of Finance
- Statistical Profile of the NYC Hotel Room Occupancy Tax, Tax Year 2025, NYC Department of Finance
- N.Y. Multiple Dwelling Law § 4, Definitions, New York State Senate
How Seayora helps
Property management accounting: Record occupancy taxes collected as liabilities, not income, and file on time.
This article is general information, not tax advice. Tax rules change and your situation is your own, so confirm the treatment with a CPA or enrolled agent before you file.
How we write and check these guides: editorial standards.
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