Short-Term Rentals in Central New York: Taxes and Recordkeeping

Quick answer: Short-term rental hosts in Central New York generally report the income on their federal and New York returns, and may also owe local occupancy tax and state sales tax on the stays. How the income is taxed depends on how many days you rent, how many days you use the place yourself, the average guest stay, and whether you provide hotel-like services. Good records of days, income, platform fees, and expenses are what make all of it work.

Short-term rentals have become a real part of the Central New York landscape, from lake cottages in the Finger Lakes and on Oneida Lake to apartments near the university and the hospitals in Syracuse. Many hosts start casually and only think about taxes after the first platform statement arrives. The rules are different enough from ordinary long-term renting that it pays to understand them early.

How is short-term rental income taxed?

The federal treatment turns on a few counts you should be tracking from the first booking.

Rented fewer than 15 days in the year: If you rent a home you also use personally for 14 days or fewer, the IRS generally lets you leave the rental income off your return entirely, and you do not deduct rental expenses. This is sometimes called the 14-day rule.
Personal use above the limit: If you use the place yourself for more than the greater of 14 days or 10 percent of the days it is rented at fair price, it is treated as a residence. Expenses must be divided between personal and rental use, and rental losses are limited. IRS Publication 527 walks through the vacation home rules.
Mostly a rental: If personal use stays under that limit, it is treated as rental property, with expenses divided by days and losses subject to the passive activity rules.

Then there is a second question: is it a rental at all, or a business?

Schedule E or Schedule C?

Most landlords report on Schedule E. Short-term hosts sometimes belong on Schedule C instead.

If you provide substantial services primarily for the guest's convenience, such as regular cleaning during stays, meals, or concierge-type help, the activity starts to look like running a small inn. That income generally goes on Schedule C and is subject to self-employment tax. Cleaning between guests and supplying linens, on its own, usually does not cross that line.

Separately, if the average guest stay is seven days or less, the passive activity rules generally do not treat the activity as a "rental activity." That can work for you or against you. If you materially participate, losses may offset other income. If you do not, losses may be stuck. This is one of the most misunderstood areas in short-term rental tax, and our article on passive activity loss rules covers the background.

What about occupancy tax and sales tax?

Beyond income tax, short-term stays can be subject to taxes the guest pays and you, or the platform, collect.

County occupancy tax. Counties in Central New York, including Onondaga, impose hotel or room occupancy taxes, and many apply them to short-term rentals. Rates and registration rules differ by county, so check with your county's finance office.
New York State sales tax. New York's rules on sales tax for short-term rental stays and the duties of booking platforms have been changing in recent years, along with a statewide approach to registering short-term rentals. Check tax.ny.gov for the current requirements before assuming you are covered.
Platform collection. Airbnb, VRBO, and similar platforms collect and remit some of these taxes in some places. Do not assume they handle all of them. Read your payout reports to see exactly what was collected and on whose behalf.

Cities, towns, and villages may also have their own permit, registration, or zoning rules for short-term rentals. Those are not tax rules, but ignoring them can bring fines that wipe out a season's profit.

What records should a short-term host keep?

The IRS and New York both expect you to back up the numbers. For short-term rentals, a few records matter more than usual.

A day log. Every day of the year marked as rented, personal use, or vacant. Days spent mainly on repairs and maintenance usually do not count as personal use, so note them.
Platform reports. Annual earnings summaries, payout reports, and any Form 1099-K. Your gross bookings are usually higher than your payouts because of fees and taxes withheld.
Expense receipts. Cleaning, supplies, utilities, internet, insurance, property taxes, mortgage interest, repairs, furnishings, and platform fees.
Tax collection records. What occupancy and sales tax was collected, by whom, and what you remitted yourself.
Improvement records. New roofs, decks, and kitchens are depreciated, not deducted in one year. Keep the invoices with the property file.

Our guide to tracking rental income and expenses lays out a simple system that works for short-term hosts too.

Common mistakes we see

A few issues come up again and again with hosts:

Reporting only the payout instead of gross bookings, then deducting the fees separately, or not at all.
Forgetting that the house was used personally during the summer, which changes how expenses are split.
Deducting a full year of mortgage interest and property tax as a rental expense on a property that was only rented part of the year.
Not registering for local occupancy tax because a friend said the platform handles it.
Treating a one-time furniture package as a repair instead of depreciating it.

None of these are hard to fix if caught early. They are harder to unwind after a notice from the county or the state.

Frequently asked questions

Do I have to report Airbnb income if I only rented a few weekends?

If you rented a home you also live in for 14 days or fewer during the year, federal law generally lets you exclude that income, and you do not deduct the rental expenses. Once you pass 14 days, the income is reportable. Keep a day count either way.

Does Airbnb pay the occupancy tax for me?

Sometimes, for some taxes, in some places. Platforms collect and remit certain state and local taxes in certain jurisdictions, but coverage varies. Check your payout reports and confirm with your county which taxes are being collected and which you must remit yourself.

Is short-term rental income subject to self-employment tax?

Usually not, if you are simply renting the space. It can be if you provide substantial hotel-like services for guests, in which case the activity may belong on Schedule C. Where your situation falls depends on the specific services you offer.

Can I deduct furniture and supplies for my short-term rental?

Yes, to the extent they are used for the rental. Everyday supplies are generally deductible in the year purchased, while furniture and appliances are usually depreciated or may qualify for faster write-off methods. Personal use days reduce the deductible share.

This article is general information for 2026, not tax or legal advice for your situation. Tax rules and figures change; confirm current amounts with the IRS, New York State, or your accountant before acting.