NYC Hotel Tax: 14.75% Plus $3.50 a Night, Explained

The four charges on a NYC hotel bill

Sales tax. Hotel stays in New York State are taxed at the combined state and local sales tax rate, according to the state's hotel and motel occupancy bulletin. For New York City, Publication 718 (effective 1 March 2025, the version posted on 19 October 2026) gives 8⅞%, which includes the ⅜% for the Metropolitan Commuter Transportation District. The rates bulletin confirms the state share is 4%.

City hotel tax. The NYC Department of Finance charges the hotel room occupancy tax as a percentage of rent plus a flat amount per room per day. Its 2024 annual report, published July 2025, gives the rate for rooms renting at $40 or more as "$2.00 per day + 5.875% of the rent", and says the 5.875% rate was extended to 30 November 2027. A suite pays the $2.00 for each room in it.

State unit fee. On top of both, the state charges a hotel unit fee of $1.50 per unit per day in New York City. The bulletin says this fee is not itself subject to sales tax, and that your invoice must show the taxes and the unit fee separately.

These rates come from the state and the city, not from the hotel. What changes your total is the rate you booked and any fees the hotel charges alongside it.

Worked example: a $300 room

Here is what the four charges add to one night at $300, before any hotel fees:

That is $47.75 on top of the rate, or about 15.9%. A bill that rounds each percentage line to the cent shows $26.63 and $17.63, which makes the night one cent higher, $347.76. Over three nights the taxes come to $143.25, and the bill to $1,043.25.

The two flat charges matter more on cheaper rooms. At $150 a night, the same four charges add $25.63, about 17.1%. At $500 they add $77.25, about 15.5%. For two rooms, every flat charge doubles: two $300 rooms for three nights is $286.50 in tax and fees, not $143.25.

For why the rate itself is so high, see what New Yorkers pay in rent, and why your hotel costs so much. For how US sales tax works in shops and restaurants, see US sales tax and the real price.

Resort fees, destination fees and other extras

Many hotel bills include more than the four government charges. Two official rules decide how those extras reach you.

They must be in the advertised price. The Federal Trade Commission's Rule on Unfair or Deceptive Fees, in effect since 12 May 2025, covers short-term lodging. The FTC's FAQ says the total price must include all mandatory charges the business knows about, and its example is direct: a required resort fee "must be included in the total price." Taxes and other government charges are one of the few things that can be left out of the headline number, but they still have to be disclosed before you pay.

So when you compare hotels online, the price you see should already include any mandatory resort or "destination" fee. What it may not include are the four charges above. Add them yourself before deciding between a $280 room and a $300 one.

They can be taxed. The state bulletin says service fees, cleaning fees, fees for extra people, pet fees, parking and equipment rentals may be taxable, either as part of the occupancy charge or as separate taxable services. It does not name resort fees specifically. The NYC Department of Finance page bases its tax on the "rent" without defining whether a hotel's mandatory fees count. If your confirmation shows a separate fee, check whether tax is charged on it before you reach the desk.

Things that are not taxes at all: a deposit or card hold at check-in, which is released later, and tips for housekeeping or the bell desk, which are up to you. See tipping in the United States.

Long stays: when the tax stops

Most visitors will never reach these thresholds, but they explain the "permanent resident" line on some invoices:

• State sales tax and the $1.50 unit fee stop after 90 consecutive days in the same place, according to the state bulletin.
• New York City's local sales tax continues until 180 days.
• The city hotel room occupancy tax exempts people who occupy a room for at least 180 consecutive days, per the Department of Finance.

A stay of three months in one hotel still pays the city's share for its whole length.

Checking your bill

Before you check out, look for the four lines and do the arithmetic against your nightly rate. The state bulletin requires the taxes and the unit fee to be shown separately on the invoice. If the total is higher than the four charges explain, the difference is a hotel fee, not a tax, and you can ask the front desk what it is for.

If you arrive before check-in time and only need somewhere for your bags, our guide to luggage storage before check-in covers the options.