New York City vs Palm Springs

New York Effectively Banned | California Legal but Limited

Disclaimer: General information only — not legal advice. Verify with your local government.

New York City, New York
Status Effectively Banned
Permit Fee $145 registration fee (OSE)
Tax Rate 5.875% hotel room occupancy tax + state/city sales tax
Day Limit No limit
Renewal Every 2 years
Platform Tax Yes
Max Fine $5,000 first offense; up to $7,500 for subsequent violations
Palm Springs, California
Status Legal but Limited
Permit Fee $1,072/year Vacation Rental Certificate; $642/year Junior Certificate
Tax Rate 12.5% combined (11.5% TOT + 1% TBID)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension

Palm Springs has more favorable STR regulations overall.

Permits & Licensing

New York City charges $145 registration fee (OSE) for STR licensing, while Palm Springs charges $1,072/year Vacation Rental Certificate; $642/year Junior Certificate. New York City renewal is every 2 years, and Palm Springs renewal is annual. Overall, Palm Springs has a more permissive regulatory environment (Legal but Limited) compared to New York City (Effectively Banned).

Tax Obligations

In New York City, hosts pay 5.875% hotel room occupancy tax + state/city sales tax. In Palm Springs, hosts pay 12.5% combined (11.5% TOT + 1% TBID). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in New York City face penalties including $5,000 first offense; up to $7,500 for subsequent violations. In Palm Springs, violations can result in $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

New York City Overview

Local Law 18 (2023) requires hosts to register with OSE, be present during stays, and limits guests to 2. Entire-apartment rentals under 30 days are effectively banned. Only hosted stays with the owner present are permitted.

Contact: NYC Mayor's Office of Special Enforcement — (212) 676-4101

Full New York City guide →

Palm Springs Overview

Limited to 26 rental contracts per year (28 nights or shorter each). Neighborhood density cap of 20% — multiple neighborhoods already at capacity. One permit per owner; occupancy based on bedroom count. $500,000 liability insurance required.

Contact: Dept. of Special Program Compliance — (760) 322-8383

Full Palm Springs guide →

Frequently Asked Questions

Is it easier to Airbnb in New York City or Palm Springs?
New York City is classified as "Effectively Banned" while Palm Springs is "Legal but Limited." New York City's permit fee is $145 registration fee (OSE) compared to $1,072/year Vacation Rental Certificate; $642/year Junior Certificate in Palm Springs. Overall, Palm Springs has a more host-friendly regulatory environment.
Which city has higher STR taxes — New York City or Palm Springs?
New York City charges 5.875% hotel room occupancy tax + state/city sales tax, while Palm Springs charges 12.5% combined (11.5% TOT + 1% TBID).
Which city has stricter fines for illegal short-term rentals?
New York City: $5,000 first offense; up to $7,500 for subsequent violations. Palm Springs: $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension. Both cities actively enforce STR regulations, so proper licensing is essential.
Do New York City and Palm Springs have day limits for Airbnb?
New York City has no annual day limit. Palm Springs has no annual day limit.
Which city is better for first-time Airbnb hosts — New York City or Palm Springs?
For new hosts, consider the total cost of entry: New York City charges $145 registration fee (OSE) for permits with 5.875% hotel room occupancy tax + state/city sales tax in taxes. Palm Springs charges $1,072/year Vacation Rental Certificate; $642/year Junior Certificate with 12.5% combined (11.5% TOT + 1% TBID). Automatic tax collection in New York City and Palm Springs makes compliance easier for beginners.