NYC hotel taxes and fees: what a room really costs

The four lines on a New York City hotel bill

Every hotel night in the five boroughs carries these four charges on top of the room rate:

• New York City hotel room occupancy tax: a percentage of the room rate plus a flat amount per room per day. For a room that costs $40 or more a night, the flat amount is $2.00.
• New York State sales tax.
• New York City sales tax. Together with the state tax, the combined sales tax rate in the city is 8.875%.
• New York State hotel unit fee: $1.50 per room per day. The state says this fee is not itself subject to sales tax.

Ask for the lines, not a lump sum

New York State requires the hotel to show the taxes and the unit fee as separate lines on your bill. So if a quote gives you one number called "taxes and fees," ask for the breakdown. It is the fastest way to see what is a tax and what is a hotel charge.

Suites cost more in flat tax

The city's flat amount is charged per room, and a suite counts every room. The Department of Finance uses a three room suite as its example: $6.00 a day in flat tax, plus the percentage tax on the full suite rate. Worth knowing if you are booking a suite for a family or a long work stay.

Resort fees, destination fees and the price you were shown

Some New York hotels add a daily resort, destination or facility fee. That is a hotel charge, not a tax.

Since May 12, 2025, a Federal Trade Commission rule says a price advertised for short-term lodging, which covers hotels and vacation rentals, has to include the mandatory fees up front. Government taxes can still be left out of the advertised price and added later. So the first price you see should now include the resort fee, but usually not the taxes.

Across the river: New Jersey

New Jersey charges its 6.625% sales tax plus a 5% State Occupancy Fee on hotel rooms. Most towns can add a municipal occupancy tax of up to 3% on top of that.

A few cities work differently. Jersey City and Elizabeth have their own 6% hotel tax, and there the state fee drops to 1%. New Jersey's tax bulletin puts the total on a hotel room in either city at 13.625%. Newark also has its own local hotel tax with the reduced state fee, so ask the hotel for the exact figure there.

The tax lines are different on each side of the Hudson, so compare totals, not nightly rates. See hotels in Jersey City, Hoboken and near Newark Airport.

Staying for months changes the tax

In New York, a guest who stays at least 90 consecutive days is treated as a permanent resident for state sales tax. The state says the hotel may credit your account or refund the state tax and unit fee you already paid. If it does not, you can apply to the state for a refund. You do not have to be in the same room the whole time.

New York City's local sales tax keeps applying until day 180, and the city's own hotel occupancy tax also uses 180 consecutive days for its permanent resident exemption.

A business that rents and pays for rooms for its own employees for at least 90 consecutive days can qualify too. The state bulletin lists the conditions. New Jersey has a similar exemption for rentals of at least 90 consecutive days.

If you already know the stay is 30 nights or more, price a furnished apartment next to an extended stay hotel before you decide.

How to get the real number before you book

• Ask for the total for the whole stay in writing: the rate, each tax line and each hotel fee.
• Ask if there is a daily resort, destination or facility fee, and what it covers.
• If you are driving, ask what parking costs per day.
• Compare the total on both sides of the river, not just the rate.
• For a stay of 90 nights or more, ask the hotel how it handles the permanent resident rule.

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