Short-Term Rental Rules in New York (2026 Guide)

Quick Answer: Are Short-Term Rentals Legal in New York?

Yes, but rules depend on the property's location.

In New York City: Short-term rentals, defined as stays under 30 consecutive days, are legal only if the host is physically present for the entire stay and no more than two paying guests are hosted at once. NYC Local Law 18 of 2022 (Int. 0018-A-2022), which took full effect September 5, 2023, requires every host to obtain a registration number from the Mayor's Office of Special Enforcement (OSE) before listing on any platform (NYC Administrative Code § 26-2101 et seq.). Platforms like Airbnb and Vrbo are prohibited from processing transactions for unregistered listings. This framework effectively eliminates whole-unit rentals for under 30 days in NYC.

Outside NYC: No single statewide short-term rental licensing law exists as of 2025. Rules are set at the municipal or county level. Some cities and towns have adopted detailed STR ordinances, while others have none. Contact your local government directly to determine the requirements.

Key Distinction: A rental of 30 consecutive days or more is not considered a short-term rental under NYC law and is not subject to Local Law 18. Different regulations apply to these longer-term stays.

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New York City Rules: Local Law 18 Explained

Local Law 18 is New York State's most consequential short-term rental regulation.

Who It Covers

The law applies to any rental of a dwelling unit, or a portion of one, for fewer than 30 consecutive days (NYC Administrative Code § 26-2101). Permitted hotels, motels, and bed-and-breakfasts are exempt. Rentals of 30 or more consecutive days are also exempt.

Core Requirements for Hosts

• Registration: Hosts must obtain a Short-Term Rental Registration number from OSE before listing or accepting bookings. Operating without one is a violation (NYC Administrative Code § 26-2102).
• Host Presence: The registered host must be physically present for the entire duration of the guest stay.
• Two-Guest Maximum: No more than two paying guests are permitted at one time, regardless of unit size (NYC Administrative Code § 26-2103).
• Primary Residence Only: The unit must be the host's primary residence. A host may only hold one registration.

Platform Obligations

Booking platforms have direct legal responsibility under Local Law 18. They must verify registration numbers before a listing can be published and are prohibited from processing any transaction for an unregistered listing (NYC Administrative Code § 26-2104). OSE can fine platforms for transactions involving unregistered listings; consult OSE for the current penalty schedule.

Enforcement

OSE enforces Local Law 18 and can issue fines to hosts and platforms. Hosts face penalties for operating without registration, violating the host-presence rule, or exceeding the two-guest limit. For current fine schedules, consult OSE directly, as penalty amounts are set by NYC Rules Title 63 (Short-Term Rental Registration).

Building-Level Restrictions

Compliance with Local Law 18 does not override a building's private rules. Co-op proprietary leases, condo bylaws, and standard rental leases frequently prohibit subletting. Rent-stabilized tenants face additional restrictions under the Rent Stabilization Code. Review your governing documents before applying for registration.

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NYC Registration Process: Step-by-Step and Fee Schedule

Where to Apply

Submit applications through the NYC OSE online portal at nyc.gov/ose.

What You Need

• Government-issued photo ID
• Proof of primary residency, such as a utility bill, lease agreement, or property deed
• An attestation that the unit is your primary residence
• Building type confirmation, as Class A multiple dwellings (permanent residential buildings) are subject to additional rules under NYC Multiple Dwelling Law § 4

Fees and Validity

The application fee was $145 as of early 2024. (Fee figure is from early 2024; confirm current rate with the NYC Office of Special Enforcement before submitting — rates have been adjusted multiple times since.) Registration is valid for a set term, after which renewal is required (NYC OSE Short-Term Rental Registration Rules, 63 RCNY Chapter 12). Confirm the current registration term with OSE at the time of application.

Processing Timeline

OSE has a statutory period to approve or deny a complete application (NYC Administrative Code § 26-2102). Verify current processing times with OSE. Submitting an incomplete application will delay the process.

After Approval

Once approved, you will receive a registration number. This number must appear on every listing on every platform before you accept any bookings.

If You Are Denied

OSE will provide written grounds for denial. Common reasons include prior code violations, failure to demonstrate primary residency, and building type restrictions. An appeals process is available; consult OSE directly for current appeal procedures.

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Comparison Table: STR Rules Across Key New York Jurisdictions

Rules outside NYC change frequently. This table is a starting point. Verify all information directly with the relevant local agency before listing.

Notes on Upstate New York: Many upstate municipalities adopted or tightened STR ordinances between 2021 and 2024. The Catskill region and Sullivan County have seen significant regulatory activity. Southampton Town has been among the most active on Long Island's East End, with permit requirements under Southampton Town Code Chapter 270. Specific fees and day caps are subject to amendment and must be confirmed with the town.

Where no local ordinance exists, state tax and building code rules still apply, but there is no state-level permit requirement.

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Tax Obligations for New York Short-Term Rental Hosts

Hosts in New York may face tax obligations at the state, local, and federal levels. Non-compliance with tax laws can result in significant penalties.

New York State Sales Tax

New York State imposes a 4% sales tax on hotel occupancy, which includes short-term rentals of fewer than 90 consecutive days (New York Tax Law § 1105(e)). Stays of 90 consecutive days or more fall outside this provision.

NYC Hotel Room Occupancy Tax

For rentals in New York City under 180 days, the NYC hotel room occupancy tax applies. The rate is 5.875% plus a per-unit, per-day fee (NYC Administrative Code § 11-2501 et seq.). Verify the current rate and fee structure with the NYC Department of Finance, as these figures are subject to change.

Platform Tax Collection

For registered listings, platforms like Airbnb and Vrbo may collect and remit NYC and NYS taxes automatically. Confirm with your platform that automatic collection is active for your listing to avoid double payment.

County Occupancy Taxes

Many counties impose their own hotel and motel occupancy taxes. Sullivan County and Ulster County are among those with county-level taxes. Contact your county treasurer's office for the current rate applicable to your property.

Pending Municipal Tax Expansion

Legislative proposals sometimes seek to expand local taxing authority. For example, S 7321 (2025-2026) proposed authorizing the City of Mount Vernon to impose a hotel and motel tax before it was substituted by a related bill, A7341C.

Federal Income Tax

Rental income is reportable on your federal tax return. Under IRC § 280A, if you rent your home for 14 or fewer days per year, the income may be excluded from gross income. If you rent for more than 14 days, all rental income is reportable, and you must allocate expenses between personal and rental use. Consult a tax professional for guidance.

Record-Keeping

Retain all booking records, payment summaries, and tax remittance confirmations for at least three years to support your filings in case of an audit by the NYS Department of Taxation and Finance.

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What Changed Recently: 2024-2025 Regulatory Developments

Local Law 18 Enforcement Impact

Full enforcement of Local Law 18 began September 5, 2023. By 2024, the number of active short-term rental listings in NYC had dropped significantly. For verified listing counts and enforcement statistics, consult OSE public records and press releases.

OSE Enforcement Actions

OSE has issued fines to both platforms and individual hosts since enforcement began. For specific numbers of citations and penalty amounts, consult OSE's publicly available enforcement reports or submit a public records request.

Junk Fee Prevention Act (S 363 / A 9604)

The New York Junk Fee Prevention Act is under consideration in the 2025-2026 legislative session. S 363 was amended on third reading (S 363B) as of April 2026. Its companion bill, A 9604, was referred to the Committee on Consumer Affairs and Protection. A separate version, A 6663, had its enacting clause stricken. If enacted, this law would regulate the disclosure of fees in consumer contracts. Monitor the NYS Legislature website for the bill's progress and final language to understand its specific impact on STR pricing displays.

Housing Supply Legislation

Several 2025-2026 bills address the state's housing supply, a key factor influencing STR policy. A 3996 proposes a jobs and housing pilot program, and A 6265 would establish a New York State Social Housing Development Authority. While neither bill directly regulates STRs, they signal a legislative focus on housing availability.

Upstate Regulatory Tightening

Municipalities across the Hudson Valley, Catskills, and other regions continued to adopt or amend STR ordinances through 2024 and into 2025. If you own property in these areas, assume the rules may have changed and verify current requirements with the local town clerk.

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Federal Tax Considerations

Short-term rental businesses in New York face specific federal tax implications that can significantly affect their profitability. Key considerations include how rental income is reported and the potential for tax-free income under certain conditions, as outlined in the Internal Revenue Code (IRC).

• Schedule E is used for reporting passive rental income unless substantial services are provided, which would require Schedule C (IRC § 469).
• The 14-day rule allows property owners to rent their home for fewer than 15 days a year without reporting rental income (IRC § 280A(g)).
• Depreciation for residential rental property is typically spread over 27.5 years, while properties providing substantial services may qualify for a 39-year depreciation schedule (IRC § 168).
• Federal occupancy tax does not exist; however, state and local lodging taxes are often collected by online travel agencies (OTAs).
• Keep in mind that while federal tax laws apply, New York may have specific regulations or additional taxes that could impact your overall tax strategy.

This is not tax advice — consult a CPA familiar with Short-term rentals for your specific situation.

Frequently Asked Questions

Why is there a ban on whole-unit short-term rentals in New York City?

The ban is part of Local Law 18, aimed at preserving affordable housing and preventing the loss of long-term rental units to short-term rental conversions. This regulation requires hosts to be present during guest stays and limits the number of guests.

What should I do if I want to operate a short-term rental outside of New York City?

Since there is no statewide regulation, you should contact your local town or city clerk to understand the specific short-term rental rules and requirements in your municipality, as they can vary significantly.

Are there any exemptions to the short-term rental regulations in New York City?

Yes, permitted hotels, motels, and bed-and-breakfasts are exempt from Local Law 18. Additionally, rentals of 30 consecutive days or more are not considered short-term rentals and are not subject to these regulations.

What are the penalties for operating an unregistered short-term rental in NYC?

Hosts can face fines for operating without a registration number, violating the host-presence rule, or exceeding the two-guest limit. For current penalty amounts, consult the NYC Office of Special Enforcement.

How does New York City's short-term rental law compare to neighboring states?

New York's regulations are among the strictest in the country, particularly in NYC, where whole-unit rentals are largely prohibited. Neighboring states may have more lenient or varied regulations, so it's essential to check local laws in each state.

Next Steps and Who to Contact

If You Are an NYC Host

1. Visit nyc.gov/ose to begin the Short-Term Rental Registration application.
2. Gather your government-issued ID, proof of primary residency, and building documentation before starting.
3. Do not list your unit on any platform until you have a registration number.
4. Contact OSE directly with questions about your application. Consult the OSE website for current contact information.
5. Use NYC 311 to report suspected illegal STR activity.

If You Are Outside NYC

Contact your city or town clerk's office first. Ask if a local STR ordinance exists, if a permit is required, and how to apply. Do not assume no ordinance means no rules; building codes, zoning laws, and county health regulations may still apply.

Tax Questions

Contact the NYS Department of Taxation and Finance for guidance on sales tax obligations. The department publishes guidance on its website, tax.ny.gov.

Before Listing in a Co-op, Condo, or Rent-Stabilized Unit

Consult a New York City real estate attorney. Local Law 18 compliance does not protect you from lease termination or co-op board action if your building's governing documents prohibit subletting.

Insurance

Review your homeowner's or renter's insurance policy. Standard policies often exclude STR activity. Obtain a specific rider or a standalone host protection policy. Platform-provided protection is not a substitute for your own insurance.

Platform Resources

Airbnb and Vrbo maintain NYC-specific resource pages explaining registration verification and tax collection. Check these pages on each platform's website for current information.

Stay Current

STR regulations in New York evolve frequently. Bookmark the OSE website and your local municipality's website, and check them at least annually for updates.

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Pending Legislation to Watch in New York

Live data from OpenStates. Updated every 24 hours. Pending = introduced and not yet enacted, dead, or vetoed.

S 363 (2025-2026)

What it does: Establishes the "New York junk fee prevention act"

Latest status: AMENDED ON THIRD READING (T) 363B. (2026-04-20)

A 10549 (2025-2026)

What it does: Authorizes a tax abatement for alterations and improvements to multiple dwellings for purposes of preserving habitability in affordable housing.

Latest status: REFERRED TO REAL PROPERTY TAXATION. (2026-03-13)

A 9604 (2025-2026)

What it does: Establishes the "New York junk fee prevention act"

Latest status: REFERRED TO CONSUMER AFFAIRS AND PROTECTION. (2026-01-21)

S 8846 (2025-2026)

What it does: Enacts the "CR clean water and sewer authority act"

Latest status: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS. (2026-01-09)

A 3996 (2025-2026)

What it does: Establishes a jobs and housing pilot program to create jobs in the construction industry and address the housing crisis.

Latest status: REFERRED TO HOUSING. (2026-01-07)

Source: OpenStates. Data is heuristic — verify with the linked bill page before relying on it.

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