Colonie, NY Hotels & Lodging: Transient Occupancy Tax (2026)

New York State has not enacted a statewide hotel occupancy tax outside of state sales tax under Tax Law §1105(e); instead, it grants counties outside New York City the authority to levy a hotel-room occupancy excise tax through county-specific enabling statutes such as Tax Law §1202-g and parallel sections. Albany County exercised this authority and imposes a 6% hotel occupancy tax on the consideration paid for any room rented for less than 30 consecutive days. The tax is administered by the Albany County Department of Management and Budget / Finance, with revenue dedicated in part to tourism promotion through the Albany County Convention and Visitors Bureau (Discover Albany). 'Hotel' under the local law includes hotels, motels, inns, bed-and-breakfasts, and (consistent with NY Tax Department interpretation of Tax Law §1101(c)) most short-term rental dwellings rented for less than 30 consecutive days. The Town of Colonie does not impose its own separate municipal occupancy tax. On top of the Albany County 6%, the New York State 4% sales tax under Tax Law §1105(e) and the Albany County 4% local sales tax also apply, for a combined transactional tax rate of roughly 14% on every taxable room-night in Colonie. Operators register separately with the Albany County Department of Finance (county TOT) and with the NY Department of Taxation and Finance (state and local sales tax, using Form DTF-17). Exemptions follow Tax Law §1101(c)(4) - permanent residents (90+ consecutive days), certain government and exempt-organization stays paid with Form ST-119.1.