The tourist tax in New York City is not a single charge but a stack of them. On a hotel room you pay about 14.75% in combined percentage taxes plus $3.50 per night in flat fees. Almost everything you buy carries an 8.875% sales tax. Rental cars are taxed at roughly 20.875%. Taxis, rideshares, and private cars driving into Manhattan face their own surcharges and tolls. None of it is hidden, but it adds up quickly if you only budget for the sticker price.
What You Pay on a Hotel Room
Four separate charges land on a New York City hotel bill. The city’s own hotel room occupancy tax is 5.875% of the nightly rate, in effect since December 2013 and scheduled to run through December 2027.1New York City Legal Library. New York City Administrative Code 11-2502 – Imposition of Tax On top of that, the same 8.875% sales tax that applies to most goods is applied to the room (4% state, 4.5% city, and 0.375% for the Metropolitan Commuter Transportation District), collected by the state rather than the city.2New York City Department of Finance. Business NYS Sales Tax
Then come two flat per-night fees. The city adds $2.00 per room per day for any room priced at $40 or more, which covers essentially every tourist hotel in Manhattan.3New York City Department of Finance. Hotel Room Occupancy Tax Another $1.50 per room per day goes to the New York Convention Center Development Corporation and does not change with the room price.4New York State Senate. New York Tax Law TAX 1104 – Convention Center Hotel Unit Fee
Put together, that is 14.75% in percentage taxes and $3.50 per night in flat fees. On a $300 room, you are paying roughly $47.75 per night in taxes alone, close to a 16% effective rate. A four-night stay generates about $191 in taxes on top of the quoted room rate.
Mandatory Hotel Fees Are Not Taxes
Separate from government taxes, many hotels charge mandatory “resort” or “destination” fees ranging from about $25 to $50 per night for Wi-Fi, gym access, or bottled water. These are set by the hotel, not any taxing authority. Since the FTC’s Rule on Unfair or Deceptive Fees took effect on May 12, 2025, hotels and short-term rental sites must display the total price including all mandatory fees as the most prominent price in listings and advertisements.5Federal Trade Commission. FTC Rule on Unfair or Deceptive Fees to Take Effect on May 12, 2025 Government taxes can still be shown separately, but the rate you see while shopping should otherwise match the rate you pay. A nightly price that jumps significantly at checkout because of an undisclosed facility fee now violates federal law.
Sales Tax on Shopping and Meals
Most purchases in New York City carry an 8.875% combined sales tax: 4% state, 4.5% city, and 0.375% for the MCTD.6NYC311. Sales Tax That covers restaurant meals, electronics, souvenirs, and most tangible goods you would buy on a trip.
Clothing and footwear are the big exception. Any individual item priced under $110 is exempt from the state’s 4% sales tax, and the city has waived its 4.5% share and the MCTD portion on those items as well, so qualifying clothing and shoes carry no sales tax at all in the five boroughs.7New York State Department of Taxation and Finance. Clothing and Footwear Exemption The threshold is per item, not per receipt. Five $100 shirts in one transaction are all exempt. One $110 jacket, though, gets the full 8.875% applied to the entire price, not just the amount over the threshold. The exemption covers only items worn on the body; jewelry, handbags, and watches are taxed at the standard rate regardless of price.8New York State Department of Taxation and Finance. Lists of Exempt and Taxable Clothing, Footwear, and Items Used to Make or Repair Exempt Clothing
At restaurants, watch for mandatory service charges, which some places now add to every table. Because the customer did not choose the amount, the IRS treats them as part of the bill rather than a tip.9Internal Revenue Service. Tips Versus Service Charges – How to Report The practical effect for you is that sales tax applies to a mandatory service charge, while a voluntary tip you write in yourself is not taxed.
Airbnb, Vrbo, and Other Short-Term Rentals
Booking a short-term rental in New York City does not get you out of the hotel taxes. As of March 2025, state and local sales tax applies to any short-term rental where the nightly rate exceeds $2.00, and the $1.50 Convention Center unit fee applies within the city as well.10New York State Department of Taxation and Finance. Sales Tax on Short-Term Rental Unit Occupancy Major platforms generally collect and remit these at checkout, so they appear as separate line items in your booking total rather than as a surprise on arrival.
Rental Cars Carry the Heaviest Tax
If you rent a car in New York City, expect roughly 20.875% in combined taxes. A 6% statewide special tax applies to all passenger car rentals in New York, and renting inside the Metropolitan Commuter Transportation District (which includes all five boroughs) adds another 6% supplemental tax.11New York State Department of Taxation and Finance. Sales Tax Rates, Additional Sales Taxes, and Fees That is 12% in rental-specific tax before the standard 8.875% sales tax goes on top.
On a $75-per-day rental, you are paying about $15.66 per day in taxes, close to $110 in tax alone over a week. Picking up a car outside the MCTD, such as upstate, drops the 6% supplemental tax, though the 6% statewide rental tax and local sales tax still apply.
Taxis, Rideshares, and Driving Into Manhattan
Any trip that starts, ends, or passes through Manhattan south of 96th Street carries a flat congestion surcharge on top of the fare: $2.50 in a yellow medallion taxi, $2.75 in a rideshare or black car, and $0.75 in a shared pool ride.12New York State Department of Taxation and Finance. Congestion Surcharge It applies per trip, so a day of hopping between neighborhoods adds up fast.
If you are driving yourself into the busiest part of Manhattan, you also owe the Congestion Relief Zone toll. The zone covers Manhattan south of and including 60th Street, with the FDR Drive and West Side Highway excluded. Passenger cars with an E-ZPass pay $9 during peak hours and $2.25 overnight. Peak hours run 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends.13MTA. About the Congestion Relief Zone Toll The toll applies each time you enter the zone.
If You Are Visiting Elsewhere in New York
These rates are specific to New York City. The state’s 4% sales tax applies everywhere, but local sales tax rates elsewhere typically run from about 3% to 4.75%, leaving most counties below the city’s 8.875%. The city’s 5.875% hotel occupancy tax does not apply outside the five boroughs, though many counties impose their own occupancy taxes of roughly 3% to 5%. The $1.50 Convention Center unit fee is a New York City charge only.4New York State Senate. New York Tax Law TAX 1104 – Convention Center Hotel Unit Fee The 6% supplemental rental car tax reaches throughout the MCTD, which includes the suburban counties around the city, but not upstate destinations like the Adirondacks, the Finger Lakes, or Niagara Falls.