New York City Hotel Occupancy Tax: What Travelers Need to Know for 2025

New York City applies several different taxes and fees to hotel and short-term rental stays. These charges are added to the nightly rate and can vary depending on room price, accommodation type, and borough. For visitors, the final bill often looks higher than expected because New York applies state tax, city tax, and a separate hotel unit fee.

This guide explains how much travelers pay, who must pay, how the tax is collected, and what to expect when staying in New York City.

How Much Is the NYC Hotel Tax?

As of December 2025, the total tax burden generally includes:

1. New York State Sales Tax

4 percent

2. New York City Sales Tax

4.5 percent

3. Metropolitan Commuter Transportation District (MCTD) Surcharge

0.375 percent

Combined “sales tax” on hotel stays = 8.875 percent

4. NYC Hotel Room Occupancy Tax

This consists of:

(A) Percentage tax:
5.875 percent of the nightly rate

(B) Flat “Hotel Unit Fee”:
USD 2 per room per night

Together, the combined tax load for many visitors is around 14.75% + USD 2 per night, though the exact rate can vary slightly depending on the room price.

Who Must Pay the NYC Hotel Tax?

All visitors staying in:

• Hotels

• Boutique hotels and serviced residences

• Vacation rentals

• Short-term rentals (Airbnb, VRBO, etc.)

• Hostels

• Any lodging under 30 consecutive days

If a stay exceeds 180 days, different rules may apply, but this does not affect most travelers.

How Is the Tax Collected?

Taxes are collected directly by the accommodation provider, not at the airport or city level.

Visitors will see:

• State + city sales tax

• NYC occupancy tax

• USD 2 “hotel unit fee”

listed as separate lines on their bill.

Short-term rental hosts must also collect and remit these taxes when registered. Most large booking platforms automatically apply the taxes at checkout.

Do Cruise Passengers Pay NYC Hotel Taxes?

Not unless they stay in a hotel before or after their cruise.
Cruise port charges are separate from lodging taxes.

Why New York Charges These Taxes

Revenue supports:

• City services used by visitors

• Transportation infrastructure

• Local tourism programs

• Police, sanitation, and emergency services in high-visitor zones

New York’s hotel tax system has existed for decades and is periodically adjusted to match demand and budget needs.

What Travelers Should Expect

NYC’s hotel tax load is one of the highest in the United States. For a USD 350 per night hotel room, total taxes can exceed USD 50 per night, especially when resort or facility fees are included.

This should be factored into overall budgeting.