Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified New York tax professional before filing.
New York City, New York · USA · Short-term rental taxes
Short-Term Rental Taxes in New York City
Short term rental taxes in New York City stack 8.875% sales tax, a $1.50 unit fee and the 5.875% city hotel tax on top of state and city income tax — and only hosted, OSE-registered stays are legal.
The 30-Second Answer
- Short term rental taxes in New York City come in three layers: 8.875% sales tax (4% state + 4.5% city + 0.375% MCTD) plus a $1.50 per unit per day state unit fee, the city's own 5.875% hotel room occupancy tax plus $0.50–$2.00 per room per night, and income tax.
- Only hosted stays are legal: under Local Law 18 you must register with the Mayor's Office of Special Enforcement (OSE) ($145 application fee), stay in the unit with your guests, and host no more than two paying guests. Whole-unit rentals under 30 days are illegal outside Class B buildings.
- Airbnb collects and remits the state and city sales tax and unit fee for NYC bookings, but its New York tax page does not list the city hotel room occupancy tax — if that tax applies to you, you register with NYC Finance and file it yourself.
- Income tax: NYC residents pay federal tax, New York State tax (up to 10.9%) and New York City resident tax (3.078%–3.876%). New York does not follow federal bonus depreciation, so your state figures differ from your federal ones.
Deductions
What New York City STR Hosts Can Deduct
Because legal NYC short-term rentals are hosted, most costs are shared with your own home — deduct only the rental share, allocated by space and by rented days.
For a hosted room, allocate shared costs twice: by the share of the home the guest uses and by the share of the year it is rented (IRS Publication 527). Costs that only benefit the guest room are deductible in full for the rental days.
Filing Calendar
Key Dates & Filing Calendar
NYC hosts can face three calendars: New York State sales tax, NYC hotel room occupancy tax, and the federal/state/city income tax return.
The NYC hotel room occupancy tax only applies once you pass the city's thresholds (more than one room rented, and three or more rentals or more than 14 nights a year). Check the Department of Finance rules before assuming you are exempt.
NYC Department of Finance — Hotel Room Occupancy Tax; NYS Tax Bulletin TB-ST-275; NYS Form IT-201 instructions
Income Tax Treatment
Schedule E or Schedule C for a Hosted NYC Room?
New York City has no special rental regime — your federal choice between Schedule E and Schedule C flows straight into your New York State and City returns.
Rental income — Schedule E
The usual route for a hosted room
- Report rent and the rental share of expenses on Schedule E (Form 1040); the net flows into Form IT-201 for state and city tax.
- No self-employment tax on net rental income.
- Depreciation on the guest room's share of the building over 27.5 years — but New York adds back federal bonus depreciation using Form IT-398.
- Losses are generally passive; the $25,000 active-participation allowance phases out between $100,000 and $150,000 of AGI.
No income ceiling; passive loss limits apply
Business income — Schedule C
When you run it like a small inn
- Required when the average stay is 7 days or less and you provide substantial services such as daily housekeeping or meals.
- Net profit carries self-employment tax (15.3% up to the 2026 Social Security wage base of $184,500).
- May qualify for the federal QBI deduction (Section 199A); New York does not offer a matching state deduction.
- Losses are not limited by the passive activity rules if you materially participate.
No income ceiling; SE tax on profit up to $184,500
Depreciation
Depreciation for NYC Short-Term Rentals
You depreciate only the part of your home used for guests. In a co-op you depreciate the rental share of your shares' cost allocable to the building.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Rental share of the building (condo, house or co-op) | 27.5 years (straight-line) | Land is excluded. For a hosted room, depreciate only the guest room's share of the home. |
| Guest-room furniture & appliances | 5 years (MACRS) | Federal bonus depreciation is a permanent 100% for property acquired after January 19, 2025 — New York does not follow it. |
| Improvements to the guest room | 27.5 years | New flooring, a renovated bathroom used by guests; repairs that only restore condition are deducted in the year paid. |
| Computer or smart-lock equipment | 5 years (MACRS) | Allocate by business-use percentage if you also use it personally. |
Claiming federal bonus depreciation means a New York addition modification (A-209) in the year you claim it and subtractions in later years, computed on Form IT-398. Keep separate federal and New York depreciation schedules.
On sale, depreciation you claimed (or could have claimed) is recaptured at up to 25% federally as unrecaptured Section 1250 gain, and New York State and City tax the gain as ordinary income.
Occupancy & Lodging Tax
NYC Occupancy Taxes: Sales Tax, Unit Fee and Hotel Tax
A New York City short-term rental booking can carry state and city sales tax, the state unit fee and the city's own hotel room occupancy tax — each with its own rules.
Since March 1, 2025, New York State and local sales tax applies to short-term rental occupancy when the rent is more than $2.00 per unit per day, and booking services must collect it. The NYC hotel room occupancy tax is separate: it is administered by the NYC Department of Finance, not the state.
14.75% + $1.50/unit/day unit fee + up to $2.00/room/night hotel tax
NYS Tax — Sales tax on short-term rental unit occupancy (tax.ny.gov); NYC Department of Finance — Hotel room occupancy tax (nyc.gov/finance)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects and remits the 8.875% sales tax and the $1.50 unit fee; its New York tax page does not list the NYC hotel room occupancy tax | Keep Airbnb's statements; if you rent more than one room and pass the hotel-tax thresholds, register with NYC Finance and file NYC-HTX yourself |
| Vrbo or Booking.com booking | As booking services they must register with New York State and collect sales tax and the unit fee on stays they facilitate | Get Form ST-155 or rely on the platform's public collection statement; confirm who handles the city hotel tax |
| Direct booking | You register as a NYS sales tax vendor, collect 8.875% plus the unit fee, and report NYC sales on Schedule N | Charge the vacation rental taxes on top of rent, hold them separately, and file sales tax and (if applicable) NYC-HTX returns |
Per-night charges sit on top of the percentages: the state unit fee is $1.50 per unit per day in NYC, and the city hotel tax adds $0.50–$2.00 per room per day depending on the rent ($2.00 once the rent is $40 or more). The hotel tax does not apply if you rent only one room in your own home, or rent for 14 days or fewer and on fewer than three occasions a year.
Platforms
Airbnb Tax in New York City: What Platforms Handle
In NYC, platforms both verify your OSE registration before taking a booking and collect state sales tax — but income reporting and the city hotel tax stay with you.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Form 1099-K when 2026 payouts exceed $20,000 and 200 transactions; income below that is still taxable | Yes — NYS/NYC sales tax (8.875%) and the $1.50 unit fee; not listed for the NYC hotel room occupancy tax | Earnings summary in the host dashboard; tax forms by January 31 |
| Vrbo | Form 1099-K above the same federal thresholds | Must collect NYS/NYC sales tax and the unit fee as a registered booking service; confirm the hotel room occupancy tax | Annual payout summary in the owner dashboard |
| Direct bookings | No platform reporting — you report everything yourself | No — you collect sales tax, the unit fee and any NYC hotel tax | Your own booking ledger |
Listing on Several Platforms?
Every NYC listing — on Airbnb, Vrbo, Booking.com or elsewhere — must be linked to your OSE registration before it can take bookings. The 1099-K threshold is tested per platform, so add up payouts from all channels yourself; all of it goes on your return.
US Reporting: Form 1099-K, Not DAC7
DAC7 is an EU rule and does not apply in New York City. Platforms report to the IRS on Form 1099-K when payouts exceed $20,000 and 200 transactions in a year (the threshold restored by the One Big Beautiful Bill Act). Payments reported on Form 1099-MISC/NEC use a $2,000 threshold for payments after December 31, 2025.
Airbnb Help Center — Occupancy tax collection in New York (airbnb.com/help/article/2319); NYS Tax — booking service rules (tax.ny.gov)
Illustrative P&L — Hosted Room in a Brooklyn Condo
Example for a registered host renting one bedroom of their own condo for $24,000 a year. For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What NYC Hosts Should Keep
The IRS, New York State, NYC Finance and OSE can each ask for records — for tax and for proof that your rentals were legal.
| Keep | How long | Why |
|---|---|---|
| OSE registration, listing links and proof you lived in the unit | For the life of the registration plus at least 3 years | Shows each booking was a legal, registered, hosted stay |
| Booking records with guest counts and nights | At least 3 years after filing (6 if income may be understated by 25%+) | Supports rental-day allocation, the two-guest limit and hotel-tax thresholds |
| Platform tax statements, Form ST-155 and 1099-Ks | At least 3 years | Proves sales tax and unit fees were collected by the booking service, not owed by you |
| NYC-HTX and NYS sales tax returns (if you file them) | At least 3 years from filing | NYC Finance and NYS Tax audit occupancy tax separately from income tax |
| Federal and New York depreciation schedules (IT-398) | Until 3 years after you sell | Federal and state bases differ when bonus depreciation is claimed |
Keep your space-use and rental-day allocation worksheet each year. For a hosted room, it is the single document that justifies every shared-cost deduction.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Rates verified September 2026 at the official pages below. Educational information only — confirm current rates with NYS Tax, NYC Finance and a qualified New York tax professional before filing.
- NYC Department of Finance — Hotel room occupancy tax — 5.875% rate, $0.50–$2.00 per room per day, exemptions, quarterly due dates, Certificate of Registration. nyc.gov/site/finance/business/business-hotel-room-occupancy-tax.page
- NYC Office of Special Enforcement — Registration Law (Local Law 18) — Host registration and platform verification requirement. nyc.gov/site/specialenforcement/registration-law/registration.page
- NYC Office of Special Enforcement — Tips for Hosts & FAQ — Host-present rule, two-guest limit, 30-day definition, $145 fee. nyc.gov/site/specialenforcement/registration-law/tips-for-hosts.page
- NYS Tax — Sales tax on short-term rental unit occupancy — March 1, 2025 start, $2.00 threshold, $1.50 NYC unit fee, booking services, Form ST-155. tax.ny.gov/pubs_and_bulls/publications/sales/short-term-rental.htm
- NYS Tax — Publication 718 and TB-ST-825 — 8.875% combined NYC rate; 4% state rate and 0.375% MCTD. tax.ny.gov/pdf/publications/sales/pub718.pdf
- NYS Tax — TB-ST-275 Filing requirements for sales tax returns — Quarterly periods and 20-day due dates. tax.ny.gov/pubs_and_bulls/tg_bulletins/st/filing_requirements_for_sales_and_use_tax_returns.htm
- NYS Tax — Instructions for Form IT-201 and IT-225 — NYS rates to 10.9%, NYC rates 3.078%–3.876%, bonus depreciation add-back via IT-398. tax.ny.gov/forms/current-forms/it/it201i.htm
- Airbnb Help Center — Occupancy tax collection in New York — Taxes Airbnb collects for NYC stays. airbnb.com/help/article/2319
- IRS — Publication 527, Residential Rental Property — Schedule E, allocation for rented rooms, 27.5-year depreciation. irs.gov/publications/p527
Questions
Frequently Asked Questions — New York City STR Taxes
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