As of May 2025, about 150 housing units in the City of Kingston were operating as short-term rentals, out of an estimated 11,049 total housing units. That is about 1.36% of Kingston’s housing stock.
Now mayor Steve Noble is asking the Kingston Common Council to back a new city occupancy tax on short-term lodging, a move he says would help pay for services used by visitors while easing pressure on residents. The proposal, announced February 4, would apply to hotels, motels, bed and breakfasts, and short-term rentals such as Airbnb.
Under Noble’s 2026 budget plan, the city would seek authority to levy a tax of up to 3 percent on overnight stays. Noble noted that several nearby municipalities already collect similar taxes, including Newburgh at 5 percent, Catskill and Coxsackie at 4 percent, Poughkeepsie at 3 percent, and Fishkill at 2.5 percent. Kingston currently does not have a city occupancy tax, though Ulster County collects a separate countywide occupancy tax.
Because a new city tax requires state approval, the Common Council would first need to adopt a home rule request asking the State Legislature to pass enabling legislation and the governor to sign it.
City officials said the goal is to have the legislation adopted by the end of the current state legislative session in June. The city’s 2026 adopted budget includes an estimate of $100,000 in revenue tied to the proposed occupancy tax.
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