Insights

Short-Term Rental Rules in the Hudson Valley and Catskills: What Changes in 2027

Justin Henry

October 14, 2026

5 min read

Last updated October 2026. This is a summary for owners, not legal advice. Rules change quickly, so confirm every detail with your town clerk before you act on it.

If you own a vacation rental in the Hudson Valley or the Catskills, 2027 will bring new rules in several towns. Some add taxes, some cap new permits, and some set new standards for how you run the house.

This guide collects what has been proposed or passed so far, town by town, with links to the reporting. It also covers the part most guides skip: what changes when your guests book directly with you rather than through a platform.

The 2027 snapshot

Kingston (Ulster County). A proposed city occupancy tax of up to 3% on hotel, motel and short-term rental stays. Full council vote scheduled for October 6, with a second reading expected in November.
Town of Rochester (Ulster County). A strict new cap on short-term rental permits for 2027, approved at the September 24 town board meeting.
Philipstown (Putnam County). A draft law with a two-year permit, inspections and insurance requirements. The public hearing continues November 5.
New Windsor (Orange County). First proposed rules, including a requirement that owners live on site during rentals. Public hearing set for December 2.
Statewide. New York's short-term rental registry law took effect on April 21, 2025. Platforms now report bookings to the state and to counties.

Ulster County: Kingston and Rochester

Kingston's proposed occupancy tax

Kingston's mayor proposed a city occupancy tax in February. State lawmakers have since approved the home rule request the city needed, so the decision now sits with the Common Council.

As reported by the Daily Freeman, the tax would be paid by guests, on top of the state sales tax and Ulster County's occupancy tax. A council committee recommended it 4–1, and the full council was set to vote on October 6, with a second reading in November. Check the outcome on the city's website before you change your pricing.

Kingston also caps short-term rental permits at about 1% of the city's homes. Reporting from HudsonValleyOne and others describes the cap as full, with new owners placed on a waitlist.

Town of Rochester's 2027 cap

On September 24, the Rochester town board approved what the Shawangunk Journal called a strict new cap for 2027. Industry trackers report that it allows no new permits for homes where the owner does not live on site. If you own in Rochester or are thinking of buying there, read the resolution itself and speak to the building department before you plan around a rental income.

Putnam and Orange: Philipstown and New Windsor

Philipstown's draft law

Philipstown held a public hearing on its draft law on October 1, and the hearing continues on November 5. As reported by The Highlands Current, the draft includes:

A permit renewed every two years, with a $90 application fee and a $100 inspection fee.
A limit of two guests per bedroom.
An owner or agent who can respond to problems within 20 minutes.
At least $500,000 in liability insurance.
Fines starting at $1,000 and rising to $5,000, with a four-year rental ban after a third offense.

The details may change after the hearing. The town's notice has the current text.

New Windsor's first proposal

New Windsor's town board reviewed its first proposed rules on October 5. They include a requirement that the owner live on site while the home is rented. A public hearing is set for December 2. If you own a whole-home rental in New Windsor, that hearing is the time to be heard.

Statewide: New York's rental registry law

New York's short-term rental registry law took effect on April 21, 2025. HudsonValleyOne describes it as the first registry of its kind in the country.

Booking platforms report quarterly to the state on bookings in each county, including locations, nights, guest counts and taxes collected.
Counties can create their own registries, which lets them collect occupancy tax from short-term rentals and receive the platforms' reports.
Short-term rentals are subject to the same sales taxes as hotels, according to the accounting firm Bonadio.

If your guests book direct, the taxes are yours to handle

This is the part that matters most for owners who take direct bookings.

When a guest books through a large platform, the platform reports the stay and, in many places, collects and remits some of the taxes for you. When a guest books directly with you, there is no platform in the middle. You are the operator, so collecting and remitting sales tax and any county or city occupancy tax is your responsibility.

In practice that usually means four things:

Register to collect sales tax with the New York State Department of Taxation and Finance.
Register with your county for occupancy tax, and with your city if it adds its own, as Kingston proposes to.
Add the taxes to your direct-booking price and show them clearly to guests.
Keep records of nights, guests and taxes collected, the same data the platforms now report.

Ask an accountant who works with short-term rentals to confirm what applies to your home. It is far easier to set up now than to correct later.

Beyond the valley: what other towns signal

Two decisions from outside the region show where things are heading.

DeWitt, in Onondaga County, voted on September 28 to ban rentals of 29 nights or fewer from January 1, 2027, with fines starting at $1,000.
Chatham, on Cape Cod, raised its 2027 registration fee to $325. It was $200 in August and $50 before that.

The pattern is rising fees, caps on homes where the owner lives elsewhere, and stricter standards for how rentals are run. Owners who keep their paperwork in order and know their neighbors are in the best position. Both items were collected in the Strisker weekly briefing.

[Host quote to add: a Locèlle host in the Hudson Valley on how they manage permits and occupancy tax for direct bookings.]

A checklist before January 1

Confirm your permit status and renewal date with your town.
Put your permit or registration number on every listing, including your own website.
Register for sales tax and occupancy tax if you take direct bookings.
Check that your liability insurance meets any new minimum.
Write down your quiet hours and your plan for responding to a neighbor's call.
Put upcoming hearing dates in your calendar: Philipstown on November 5 and New Windsor on December 2.

How Locèlle fits

Locèlle is a curated directory of design-led homes, not a booking platform. Guests contact you directly and book with you. That keeps your rates, your calendar and your guest relationships in your hands, and it means the operator responsibilities above stay with you too.

Jorge and I started Locèlle in 2025. We host a farmhouse in Kennebunkport, Maine, so we deal with these questions ourselves. If you would like your permit number shown on your Locèlle listing, tell us and we will add it.

More for owners: How to List Your Vacation Rental Without Airbnb, Local SEO for Vacation Rental Owners and Direct Booking Website vs. Curated Platform. If you own a home in the Catskills or Hudson Valley that fits the collection, tell us about it.

Frequently asked questions

Do I need a permit to rent my house in the Catskills or Hudson Valley?

It depends on the town. Many towns in Ulster, Greene, Sullivan, Delaware, Putnam and Orange counties now require a permit or registration, and some cap how many they issue. Call your town clerk or building department to confirm.

Who collects occupancy tax when a guest books directly with the owner?

The owner does. With no platform in the middle, you are responsible for collecting and remitting sales tax and any county or city occupancy tax. Register with New York State and your county, and confirm the details with an accountant.

Can a New York town ban short-term rentals?

Towns can restrict or ban rentals under a set number of nights through local law. DeWitt, in Onondaga County, voted to ban rentals of 29 nights or fewer starting January 1, 2027.

What is New York's short-term rental registry?

A state law that took effect on April 21, 2025. Booking platforms report quarterly on stays in each county, and counties can set up their own registries to collect occupancy tax.

Does Kingston, NY have an occupancy tax on short-term rentals?

Kingston has proposed a city occupancy tax of up to 3% on hotel, motel and short-term rental stays, on top of existing state and county taxes. The Common Council was scheduled to vote in October, with a second reading in November. Check the city's website for the final decision.