Buffalo, NY Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 3% of the per diem rental rate
- Effective date
- September 1, 2025 (L.L. No. 3-2025)
- Quarterly return deadlines
- Within 20 days after Feb 28, May 31, Aug 31, Nov 30
- Permanent resident exemption
- Guests staying 90+ consecutive days
- Penalty for failure to charge tax
- $1,500 per occupancy per day
- Records retention
- 6 years
Summary
Buffalo imposes a 3% hotel and motel occupancy tax on every room rental within city limits, effective September 1, 2025. The tax covers hotels, motels, short-term rentals, bed and breakfasts, and tourist facilities.
HOTEL OR MOTEL Any facility consisting of rentable units and providing lodging on an overnight basis and shall include those facilities designated and commonly known as "short-term rental", "bed and breakfast" and "tourist" facilities.
PERMANENT RESIDENT A person occupying any room or rooms in a hotel or motel for at least 90 consecutive days shall be considered a permanent resident with regard to the period of such occupancy.
§ 10-44.1. Imposition of tax.
A. Except as otherwise provided by this article, on or after the effective date of this local law, there is hereby imposed and there shall be paid a tax of 3% of the per diem rental rate upon the rent for every occupancy of a room or rooms in the city.
B. The tax imposed upon the per diem rental rate for each room shall exclude such other charges that are separately stated and are only incurred at the option of the occupant.
C. If the operator does not separate the per diem rental rate for each room from other charges, excluding cleaning fees and booking service fees, then the entire charge to the occupant is taxable.
D. No tax shall be imposed upon a permanent resident or an organization identified in section 10-46 of this article.
Full Breakdown
The tax is 3% of the per diem rental rate and is imposed on every occupancy. The tax base excludes separately stated optional charges, but if the operator bundles the room rate with other charges (other than cleaning fees and booking fees), the entire charge becomes taxable. Permanent residents, those staying 90 or more consecutive days, are exempt. Returns must be filed quarterly within 20 days after February 28, May 31, August 31, and November 30, with records kept for 6 years.
Violations & Fines
Failure to file a return or pay the tax on time triggers a penalty of 5% of the tax due plus 1.5% monthly interest (excluding the first month). An operator who fails to charge the required tax faces an additional penalty of $1,500 per occupancy per day of occupancy.
Frequently Asked Questions
Does this tax apply to short-term rentals like Airbnb?
Who is responsible for collecting and remitting the tax?
Are long-term guests exempt?
Sources & Official References
Other rules in Buffalo
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