Albany, NY Short-Term Rentals: Taxes & Fees (2026)

Albany County Local Law K of 2025 amended the County's existing hotel occupancy tax (formerly 6% under prior local law effective January 1, 2020) to (1) raise the rate to 6.5% and (2) extend the tax to short-term rentals booked through platforms such as Airbnb and VRBO. The change takes effect in 2026 and is projected to generate roughly $975,000 annually for the County based on an estimate of 500 active STRs at $150/night and 200 booked nights per year. The County Legislature passed the law on May 12, 2026, with sponsorship from Deputy Chairwoman Joanne Cunningham and Legislator Wanda Willingham.

On top of the County occupancy tax, hosts who rent for under 30 consecutive days must collect New York State sales tax. Albany County's combined sales tax rate is 8% (4% state + 4% local). Airbnb and similar platforms generally collect and remit sales tax automatically in New York; County occupancy tax remittance for direct-booked or platform-booked stays is the host's responsibility unless the platform has entered a voluntary collection agreement with the County.

The City of Albany itself has been working on a separate STR registration and regulatory framework (public forums began February 2024) but, as of this writing, has not enacted a city-specific occupancy tax. Hosts inside city limits therefore pay County occupancy tax and State/Local sales tax, but no additional city-level lodging tax. Property owners should also factor in their share of City real-property tax, which is assessed against residential property whether or not it is used as an STR; converting a primary residence to commercial STR use may affect the STAR (School Tax Relief) exemption and homestead classification.

Stays of 30 or more consecutive days to the same occupant are exempt from both the County occupancy tax and State sales tax — those qualify as residential leases rather than transient lodging under New York Tax Law §1101(c) and the County's hotel-tax local law.