New York City hotel guests pay 50% markup after government tax buffet

New York, NY – A viral social media post showing a one-night hotel stay in New York City has set off a wave of online backlash after revealing how a $133 room ballooned to nearly $197 once taxes and fees were added.

The viral image, shared by Breaking911, shows a base rate of $133.15 with an additional $63.80 in taxes and surcharges — a nearly 50 percent markup on the original cost. The breakdown highlights the growing cost of overnight stays in the city, where layers of state, city, and hotel-imposed fees can quickly add up.

What each line item means

The hotel receipt listed multiple taxes and fees:

New York City Tax ($7.82) – A local hotel room occupancy tax collected by the City of New York. It’s imposed on every short-term stay within the five boroughs and supports city services.

New York State Tax ($11.82) – A statewide sales and occupancy tax applied to transient lodging. This revenue goes directly to the New York State treasury.

Jacob Javitz Tax ($2.00) – A per-night surcharge that helps fund maintenance and improvements to the Jacob K. Javits Convention Center and supports tourism marketing initiatives connected to the facility.

Occupancy Tax ($20.00) – Separate from city and state levies, this tax targets short-term stays and funds local tourism promotion and public infrastructure tied to the hospitality industry.

Urban Fee Tax ($5.16) – A small tax applied to a hotel’s self-imposed “urban” or “facility” fee. The hotel collects it as part of taxable receipts and remits it to local or state tax authorities.

Urban Fee ($35.00) – A hotel-imposed charge, not a government tax. Marketed as an “urban” or “facility” fee, it typically covers in-room Wi-Fi, gym access, housekeeping, or other amenities. It remains one of the most controversial charges on New York hotel bills.

Sustainability Fee ($0.50) – A hotel-imposed surcharge meant to support environmental programs, such as carbon offsetting, recycling, or green energy upgrades. This fee goes directly to the hotel.

Hotels defend, travelers fume

While hotel operators say such charges help offset costs and fund property improvements, travelers argue the practice is deceptive. “You think you’re paying $130 a night, but by the time all the taxes and ‘urban fees’ hit, it’s nearly $200,” one traveler posted on social media.

Tourism experts note that New York City has one of the highest effective hotel tax rates in the nation, combining state, city, and occupancy levies with property-level surcharges. These additional fees can make budget travel increasingly difficult for visitors.

Travelers are urged to review itemized folios carefully and ask hotels which charges are required by law and which are optional.

Key points:

  • Viral NYC hotel receipt shows $63.80 in added taxes and fees on a $133 room.
  • Fees include government taxes and hotel-imposed “urban” and “sustainability” charges.
  • Travelers call for greater transparency as hidden costs inflate room rates.