FlipStay blog · 16 October 2026 · updated 22 October 2026

US Occupancy Taxes in NYC, LA, and Miami: A Hotel Guide

A practical guide to lodging and occupancy taxes for small hotels in New York City, Los Angeles, and Miami, including tax rates, rules, and invoicing.

Operating an independent hotel in the United States means managing distinct city, county, and state lodging taxes. Falling behind on these collections can lead to heavy retroactive penalties and cash-flow shortfalls.

Unlike jurisdictions with a single national Value-Added Tax, US lodging taxes are fragmented. A guest invoice often combines state sales tax, local transit surcharges, municipal hotel taxes, and flat nightly fees. This guide breaks down the filing obligations, current rates, and invoicing mechanics for small hotels, motels, and B&Bs in New York City, Los Angeles, and Miami.

Understanding the Layers of US Lodging Taxes

When a guest rents a room for short-term lodging—anything from 30 days or less (Los Angeles) to under 180 days (New York City) or six months (Florida), depending on the place—the transaction faces multiple tax layers.

1. State Sales Tax: This applies to retail transactions, including hotel rooms. It is collected on behalf of the state government.
2. Local Sales Surcharges: Many counties and transit districts add fractional sales taxes to support local infrastructure.
3. Transient Occupancy Tax (TOT) or Bed Tax: This is a dedicated lodging tax levied by a city or county to fund tourism boards, civic centers, or general municipal budgets.
4. Flat Unit Fees: Some cities charge a fixed dollar amount per occupied room per night, regardless of room rate.

Small operators must separate what they charge from what they keep. Tax money collected from guests belongs to the taxing authority from the moment of payment. Treating it as operational cash is the most common pitfall for independent properties.

New York City: Sales Tax, HROT, and Unit Fees

New York City has one of the most complex lodging tax structures in the United States. If you operate an independent boutique hotel, inn, or guesthouse in the five boroughs, you must collect four separate charges on room revenue.

• Combined State and Local Sales Tax (8.875%): This comprises New York State sales tax (4.0%), New York City local sales tax (4.5%), and the Metropolitan Commuter Transportation District surcharge (0.375%).
• NYC Hotel Room Occupancy Tax (5.875%): Levied by New York City on taxable room rental revenue.
• NYC Fixed Occupancy Fee ($2.00/night): For rooms priced at $40 or more per night, the city charges a flat $2.00 per occupied room per night.
• NYS Hotel Unit Fee ($1.50/night): Often called the Javits Center fee, this is a flat $1.50 per unit per night charged across New York City.

Taken together, the percentage tax is 14.75%, plus $3.50 in flat nightly fees for every occupied room priced above $40. You must register with both the New York State Department of Taxation and Finance and the NYC Department of Finance before taking reservations. Filings for state sales tax are typically quarterly, while NYC HROT requires its own separate return.

Los Angeles: Transient Occupancy Tax (TOT)

In the City of Los Angeles, room taxes are consolidated at the city level, but the percentage rate is substantial.

• LA City Transient Occupancy Tax (14.0%): The City of Los Angeles levies a 14% TOT on all rent charged for living quarters occupied for 30 consecutive calendar days or less. This applies to hotels, motels, and bed and breakfasts.
• Tourism Marketing District Assessment (TMD): Hotels with 50 or more rooms also pay the Los Angeles Tourism Marketing District assessment, currently 2% of room revenue. Properties under 50 rooms are not assessed, but you must confirm your property's classification.

Unlike New York, California does not apply its state general sales tax to room charges. Instead, lodging taxes in California are governed by city and county codes. Operators within the City of Los Angeles must register with the Los Angeles Office of Finance to receive a Transient Occupancy Registration Certificate.

TOT returns and payments in Los Angeles are due monthly. They must be submitted on or before the last day of the month following the close of the reporting month. Even if you had zero bookings during an off-season month, you must file a zero-dollar return to avoid non-filing fines.

Miami and Miami-Dade County: Tourist and Resort Taxes

Lodging taxes in the Miami area vary depending on whether your property sits within the unincorporated county, the City of Miami, or the City of Miami Beach.

For a small hotel located within the City of Miami:

• Florida State Sales Tax and County Surtax (7.0%): Florida charges a 6.0% state sales tax, and Miami-Dade County adds a 1.0% local government discretionary sales surtax.
• Miami-Dade Convention Development Tax (3.0%): Collected across the county, except in Surfside and Bal Harbour, to fund convention and cultural facilities.
• Miami-Dade Tourist Development Tax (2.0%): Collected on short-term rentals to support tourism promotion.
• Miami-Dade Professional Sports Franchise Facility Tax (1.0%): A further county tourist tax on room rentals, collected countywide except in Miami Beach, Surfside and Bal Harbour, which levy their own municipal resort taxes instead (Miami Beach's is 4% on room rent).

For an operator in the City of Miami, the total combined percentage rate is 13.0%. In Miami Beach, the total rate reaches 14.0%.

Florida state sales tax is remitted to the Florida Department of Revenue. Tourist development taxes, including the 1% sports franchise facility tax, are remitted to the Miami-Dade County Tax Collector. If you operate within municipal boundaries that levy a local resort tax, you must remit that share directly to the city finance department. Always check with your accountant to identify which municipal boundaries apply to your specific street address.

Worked Example: Calculating Taxes on a 3-Night Stay

Consider an independent guest room booked for 3 nights at a base rate of $180 per night. The total room charge before tax is $540.00.

New York City

• Base room charge: $540.00
• Sales Tax (8.875%): $47.93
• NYC HROT (5.875%): $31.73
• NYC Fixed Fee ($2.00 x 3 nights): $6.00
• NYS Unit Fee ($1.50 x 3 nights): $4.50
• Total guest bill: $630.16
• Total tax collected to remit: $90.16

Los Angeles (under 50 rooms, City of LA)

• Base room charge: $540.00
• City TOT (14.0%): $75.60
• Total guest bill: $615.60
• Total tax collected to remit: $75.60

City of Miami

• Base room charge: $540.00
• Florida Sales & Surtax (7.0%): $37.80
• Miami-Dade County Taxes (5.0%): $27.00
• Miami-Dade Sports Franchise Facility Tax (1.0%): $5.40
• Total guest bill: $610.20
• Total tax collected to remit: $70.20

Your guest folio must list these items clearly. In the United States, displaying an all-inclusive single rate on an invoice without specifying taxes is not acceptable for commercial audits.

Modern cloud property management systems simplify this accounting. For example, FlipStay provides editable tax templates for US cities, including ready-made formulas for New York City, Los Angeles, and Miami. At checkout it separates the room charge from the percentage taxes and per-night fees on a PDF invoice for the guest.

What to Do This Week

1. Verify your local jurisdiction. Check whether your property sits within city limits or in an unincorporated county zone. A property on the border of Miami and Coral Gables, or Los Angeles and Santa Monica, faces different municipal codes.
2. Audit your guest folio template. Ensure your booking engine and front desk software display taxes as separate line items rather than a lumped surcharge. If your software cannot handle dual percentage taxes and flat unit fees, you can set up a free account on FlipStay to configure these rules.
3. Separate collected taxes into a reserve account. Move the tax portion of weekly earnings into a secondary bank account immediately. This prevents cash shortfalls when monthly or quarterly filings are due.

Frequently asked questions

Are long-term stays exempt from occupancy taxes?

It depends on the city. In the City of Los Angeles, a guest who stays more than 30 consecutive days is not a transient: with a written agreement for the longer stay signed on the first day, the stay is exempt from day one; otherwise the first 30 days are taxed. New York City's thresholds are longer: state sales tax stops once a guest has stayed 90 consecutive days, but the city's sales tax and Hotel Room Occupancy Tax apply until 180 consecutive days, after which tax already paid can be credited or refunded. In Florida, stays exceeding six continuous months under a written lease are exempt. You must maintain signed registration records proving continuous occupancy to claim exemptions during an audit.

What happens if an Online Travel Agency (OTA) collects the tax?

Some states and cities have passed marketplace facilitator laws requiring OTAs like Expedia or Airbnb to collect and remit lodging taxes on bookings processed through their platforms. However, this coverage is inconsistent. An OTA might remit state sales tax but not municipal resort taxes or flat unit fees. You remain legally liable for any unpaid portion. Always check the payout breakdown from each channel to see which specific taxes were remitted on your behalf.

Are cleaning fees and pet fees subject to occupancy taxes?

In most cities, yes. If a fee is mandatory to secure the room—such as a cleaning fee, resort fee, or rollaway bed fee—tax authorities treat it as part of the taxable room rent. Discretionary charges like laundry, parking, or food service often follow standard retail sales tax rules rather than hotel occupancy tax rules. Check with your accountant to ensure ancillary charges are mapped to the correct tax bucket.

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