New York City: hotel room occupancy tax and sales tax

14.75% of the room rate plus $3.50 per room per night on rooms from $40.

Status
In force
Current rates since
20 December 2013
Nights charged
Every night (no cap)
Children
No age exemption
Currency
USD

How the New York City tax works

A New York City hotel room carries four charges. Two are percentages of the room rate: sales tax of 8.875% (New York State 4%, New York City 4.5% and the transport district 0.375%) and the city's hotel room occupancy tax of 5.875%. Two are flat: the city's $2 per room per night and the state's $1.50 hotel unit fee per room per night.

Together that is 14.75% of the room rate plus $3.50 per room per night. Taxes are per room, so children and extra guests make no difference, and there is no cap on nights (stays of 180 days or more count as permanent residence and are exempt).

Rates

Where you stayTax
Hotel room at $40 or more a night 14.75% of the room price + US$3.50 per room per night
8.875% sales tax + 5.875% hotel room occupancy tax, then $2 city fee + $1.50 state unit fee per room per night.

Worked example

Example: Two adults stay 3 nights in a $300-a-night Manhattan hotel room: $44.25 + $3.50 = $47.75 a night.

Hotel room at $40 or more a night: 14.75% of the room price + US$3.50 per room per night. US$132.75 + US$10.50 = US$143.25 in tax.

Who is exempt

  • Permanent residents: guests staying at least 180 consecutive days.
  • The city tax also exempts New York State, the US government, the United Nations and qualifying non-profits.
  • Rooms under $40 a night pay a smaller flat city fee ($0.50 to $1.50) instead of $2.

Who collects it

The hotel (or the booking site) adds them to your bill. The city tax goes to the NYC Department of Finance; the sales tax and the $1.50 unit fee go to New York State.

Not yet confirmed

We couldn't confirm these from an official source, so treat them with care:

  • The split of the 8.875% sales tax (4% + 4.5% + 0.375%) is from New York State tax guidance we read in search results, not a rate table we opened; the total is widely published.

Work out your New York City tax

Sources

Checked on 28 September 2026. Rates change, often at the start of a year or a season: check the official source before you pay or file a return.

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