Vrbo Municipal Taxes within the NYC Tri-State Area

By Natasha

As a host on Vrbo, there are certain municipal taxes you are expected to pay depending on where your property is located with the New York City Tri-state area. The Tri-State area is a bustling area with a lot of major cities, so the tax expectation for short term rentals in these locations are different.

To avoid any tax penalties, you must comply with all the tax rules set in place by your local tax agency. In this blog, we will be covering the municipal tax requirements for Vrbo hosts in these bustling areas.

New York City Vrbo Municipal Tax

Vrbo hosts renting their property for less than 30 days in New York City must remit the hotel room occupancy tax,  Sales tax, and New York City Hotel Unit fee which is $1.50 per day.

Hotel Room Occupancy Tax is 5.875% of the fee you charged your guests for booking your property on Vrbo. It applies to properties that you rent for less than 180 days in a row. While sales tax is a total of 8.875%, broken down into MCTD (Metropolitan Commuter Transportation District) surcharge of 0.375%, state sales tax of 4%, and local sales tax of 4.5%. To remit these taxes, you must be registered with the state’s tax department.

New Jersey

In New Jersey, your Vrbo rental is subject to a 5% state occupancy fee and a 6.625% sales tax.  Different municipalities also impose their own occupancy taxes, and this can vary depending on the locality where your property is located.  Bear in mind that the municipal occupancy tax can be up to 3%. 

Some municipalities also charge Tourism promotion fees in addition to all the other taxes. If you own a short-term rental property on Vrbo, you’re expected to register with the state tax division to enable collection and remission of these taxes.

Connecticut

All Vrbo hosts in Connecticut are required to remit 15% state sales tax on total rental income.  This is a round figure, and no additional municipal tax is required after this has been remitted.

If you’re still struggling to understand how these taxes work, consider seeing a tax professional to ensure that you comply with all your state, local and municipal tax obligations.

Tax Tip:  Keep it in mind that rent personal, and investment real estate property are treated differently.  Legally separate and track your expenses and reduce your tax liability.

How to set up a host account with GetAround

By Godwin

Is your car sitting unused? Turn it into income with GetAround. Here’s how:

Sign Up for GetAround

Starting is easy:

  1. Visit the Getaround website and click “Sign Up.”
  2. Enter your personal and car details (type, year, mileage, and location).
  3. Ensure your car meets these requirements:
    • Year 2007 or newer
    • Less than 200,000 miles
    • Seats up to 10 passengers
    • Has automatic or manual transmission

Install the Getaround Connect Device

  1. Download the Getaround app on your iPhone or Android.
  2. Install the Getaround Connect device using the app’s instructions. This device tracks your car’s location and includes anti-theft features.

Set Availability and Pricing

Make your car available for rent:

  1. Use the online calendar to set your car’s availability. Choose the hours and days that work best for you.
  2. Set your pricing. Hourly rates typically range from $6 to $10. You keep 60% of the rental fee; Getaround takes 40%, including insurance and roadside assistance for renters.

Start Earning!

There are varying levels with the GetAround car rental platform. You can rent hourly or daily with get the exact vehicle you want. No waiting time. Typically hosts can earn up to $42,000 annually.  Top Hosts can earn over an extra $126,000 per year.  Regular rentals, you can earn a steady income. Sign up, install the Connect device, and start earning today!

Tax Tip:  Fleet owners should maintain good recordkeeping of operational fees and fines like registration and tolls for tax deductions.  Standard mileage deductions can be applied when actual end-of-year mileage report are inadequate or missing.