New York Airbnb Regulations & Vacation Rental Requirements

New York has some of the strictest regulations in the United States when it comes to short-term rentals like those offered through Airbnb. These rules have been developed in response to rising housing costs and increasing pressure from local residents and advocacy groups. Here's a list of the key regulations and legal changes in New York:

To legally operate an Airbnb or other short-term rental in New York City, hosts must register with the Mayor's Office of Special Enforcement (OSE) under Local Law 18. Rentals are permitted only for stays of less than 30 days if the host is a permanent resident, present during the entire stay, and shares common areas with guests. Hosts can accommodate a maximum of two guests, and the entire unit must be accessible to them. Properties in prohibited buildings (e.g., NYCHA housing or rent-stabilized buildings) are ineligible. Listings must display their OSE registration number, and platforms like Airbnb are banned from processing payments for unregistered short-term rentals. Class B multiple dwellings approved for legal short-term occupancies are exempt, as are rentals of 30 consecutive days or more.

• Host Presence Requirement: The host must be physically present and sharing the space for any short-term rental under 30 days, effectively banning unhosted whole-unit rentals.
• Guest Limit: No more than two paying guests at a time.
• Documentation: Hosts must provide proof of primary residency, lease or ownership documents, and identification during registration. Guests receive access to the full unit but must share common areas with the host.

New York City actively enforces these regulations through Local Law 18. The city has removed over 15,000 illegal listings since the law's full enforcement in September 2023, with a 90%+ drop in available short-term rentals by early 2025. Platforms face fines for listing non-compliant properties, and hosts risk civil penalties up to $5,000 per violation, plus potential criminal charges for operating illegal hotels. Inspectors and lawsuits target platforms like Airbnb, with ongoing data-sharing mandates to verify compliance.

As of 2025, New York City's Local Law 18 continues to act as a de facto ban on most short-term rentals, with no major rollbacks despite Airbnb's push for reforms via Intro. 1107, which seeks to ease restrictions for one- and two-family homes. A November 2024 amendment proposal to allow unhosted rentals in small homes remains under debate, but tenant advocates oppose it, citing risks to neighborhood stability. Statewide, the new short-term rental registry (effective April 2025) empowers local governments to impose further restrictions, potentially expanding the ban's impact beyond NYC by 2026.

Apart from registration, short-term rental income is subject to income tax based on residency status. New York State residents face progressive income tax rates up to 10.9%, while non-residents pay rates up to 8.82%. Starting March 1, 2025, platforms must collect and remit 4% state sales tax plus local sales taxes (typically 4-8.875% in NYC) on rentals over $2 per day. In jurisdictions with over 1 million residents like NYC, a $1.50 per-unit-per-day fee applies. Platforms like Airbnb handle collection quarterly, but hosts remain liable for unreported income.

New York's regulations aim to reduce the negative impacts of tourism on the housing market, but they also make it very challenging to operate short-term rentals legally in the city.

Last update Dec, 2025