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

STR taxation in Colonie operates under New York's enabling statute and Albany County's local law. NY Tax Law §1202-g (and parallel local-option sections) authorizes counties outside New York City to impose a hotel-room occupancy tax on stays under 30 consecutive days, provided the New York State Legislature has passed enabling legislation specific to that county. Albany County exercised this authority and imposes a 6% hotel occupancy tax administered by the Albany County Department of Management and Budget / Finance, with revenue dedicated in part to tourism promotion via Discover Albany. The county defines 'hotel' broadly to include hotels, motels, inns, bed-and-breakfasts, and (consistent with the New York State Department of Taxation and Finance interpretation of 'hotel' under Tax Law §1101(c)) most short-term rental dwellings rented for less than 30 consecutive days. The Town of Colonie does not levy a separate municipal occupancy tax. On top of the county 6%, New York State sales tax of 4% under Tax Law §1105(e) and the Albany County local sales tax of 4% also apply to hotel charges, bringing the combined transactional tax rate to roughly 14%. The 'permanent resident' exemption under NY Tax Law §1101(c)(4) excludes a person who has occupied a room for 90 consecutive days or more from sales tax on the room charge; the Albany County occupancy tax follows the standard under-30-day taxable definition. Airbnb has a New York-state-level tax collection arrangement for state sales tax but does NOT automatically remit county occupancy taxes outside New York City; the Albany County 6% is the operator's direct responsibility.