OLR Research Report


December 16, 2008

 

2008-R-0695

SALES TAX AND HOTEL TAX RATES IN THE NORTHEAST

By: Judith Lohman, Chief Analyst

You asked what the current sales and hotel tax rates are for Connecticut and the other Northeastern states.

Table 1 below shows the tax rates in nine Northeastern states. Four of the states have both state and local sales taxes while six allow towns to impose local hotel taxes in addition to the state hotel tax. The information in the table comes from tax tables and tax information published by Commerce Clearinghouse and the Federation of Tax Administrators, as well as from state tax department websites.

TABLE 1: SALES AND HOTEL TAX RATES IN NINE NORTHEASTERN STATES

 

Sales Tax Rate (State)

Sales Tax Rate (Local)

Hotel Tax Rate

(State)

Hotel Tax Rate

(Local)

Connecticut

6%

No tax

12%

No tax

Maine

5%

No tax

7%

No tax

Massachusetts

5%

No tax

5.7%

Up to 4%

New Hampshire

No tax

No tax

8%

No tax

New Jersey

7%

No tax

12%

Up to 3%

New York

4%

Up to 4.75%

4%

Up to 5%

Pennsylvania

6%

1%

6%

1%

Rhode Island

7%

1%

12%

1%

Vermont

6%

1%

9%

1%

Notes on Sales Tax Rates:

New York: Local sales tax is added to state tax.

Pennsylvania: 1% additional local sales tax applies only in certain counties.

Vermont: 1% additional local sales tax applies only in certain towns.

Notes on Hotel Tax Rates:

Massachusetts: Local hotel tax of up to 4% may be added to state tax, with local voter approval. Local and state taxes apply to hotel rooms rented for more than $15 per day. Boston, Worcester, Cambridge, Springfield, West Springfield, and Chicopee may add another 2.75% tax to fund convention centers.

New Jersey: State and local hotel tax combined is limited to 14%.

New York: In addition to combined state and local hotel tax rate of 9%, New York City charges a daily hotel fee of $1.50 per room.

Vermont: 1% additional hotel tax is a local option for most towns.

JL:ts