Our solutions are tailored to each client’s strategic business drivers, technologies, corporate structure, and culture.
04/30/2025
New York State imposes sales tax on short-term rentals
Owners and operators of short-term rental units in New York State should be aware of a new law that will impact their sales tax responsibilities.
New York recently enacted a state tax law requiring the collection and remittance of sales tax on short-term rentals in specified locations. It also establishes regulations for units, including registration, and outlines penalties for noncompliance and the responsibilities of booking services for short-term rentals.
New York State Senate Bill S820(Opens a new window) has been signed by the governor and the sales tax implications took effect on March 1, 2025.
Sales tax changes
The passed legislation defines a short-term rental unit as “an entire dwelling unit, or a room, group of rooms, other living or sleeping space, or any other space within a dwelling, made available for rent by guests for less than thirty consecutive days, where the unit is offered for tourist or transient use by the short-term rental host of the residential unit…” Therefore, New York will impose state and local sales tax on the sale of short-term rental unit occupancy in the State when the rental rate is more than $2.00 per unit per day. In addition, a unit fee of $1.50 per unit per day is imposed on every short-term rental unit occupancy within New York City. Please note, the separate New York City unit fee is not subject to state and local sales tax and should be separately stated on customer’s invoices.
What does CohnReznick think?
Taxpayers in New York State should be mindful of the impact New York State Senate Bill S820 may have on their sales tax responsibilities. Booking services such as VRBO and Airbnb and operators of short-term rental units located within New York State should register with the state immediately, file applicable sales tax returns, and confirm they are collecting and remitting the appropriate sales tax and fees.
Lastly, some localities, such as counties, cities, towns, or villages, may charge additional taxes or fees on short-term rental unit occupancy. This tax is administered by the locality. Operators and booking services should contact the locality the short-term rental unit is located in to determine whether local taxes are imposed. Taxpayers are urged to consult with their sales tax advisors to determine the impact the legislation may have on them and put the proper measures in place.
Close
Contact
Let’s start a conversation about your company’s strategic goals and vision for the future.
Please fill all required fields*
Please verify your information and check to see if all require fields have been filled in.
Insight
Massachusetts: Amendments clarify single sales factor enactment, married filer exemptions
Insight
How business owners can strengthen margins while managing tariff risks
Insight
Understanding transfer pricing and new U.S. tariffs on goods importation
Topic
Navigating tax changes: Insights for your business and personal wealth
Related services
Receive CohnReznick Tax insights and event invitations on topics relevant to your business and role.
Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.