Short-term-rental rules
Can you Airbnb in New Castle (town, incl. Chappaqua and Millwood hamlets), NY?
Researched and reviewed by Jake Lee, FounderCurrent as of July 2026How this atlas is maintained
Short-term rentals (under about 30 nights) are not a permitted use in the Town of New Castle: the zoning code defines a dwelling as "nontransient living quarters" (expressly excluding hotels, tourist homes, guest houses, rooming houses), and the residence-district use schedule states that all uses not listed are prohibited, with no short-term or transient rental use listed. The only lawful room rental is one bedroom in an owner-occupied one-family home to a single nontransient roomer or boarder staying at least one month; the town has no STR permit or registration law.
What the rules say in New Castle (town, incl. Chappaqua and Millwood hamlets)
- Residence-district use schedule is exclusive: "The following are the only uses permitted in residence districts. All uses not listed shall be deemed to be prohibited" (Town Code sec. 60-410A, 60 Attachment 2); no short-term rental, transient lodging, tourist home, or bed-and-breakfast use is listed in any residence district.
- Zoning defines DWELLING as "nontransient living quarters for a family" and expressly excludes automobile court, boardinghouse, guest house, hotel, lodging house, motel, rooming house, tourist home and trailer (Ch. 60, Art. II Definitions), so transient occupancy of a home is not a permitted residential use.
- Renting rooms for compensation otherwise constitutes a "rooming house" (defined to include boardinghouse, guest house, lodging house and tourist house), which is not a listed permitted use in any zoning district.
- Only room-rental allowance: renting not more than 1 bedroom in an owner-occupied 1-family dwelling to not more than 1 nontransient roomer or boarder, rented to the same occupant for a period of not less than 1 month, at least 100 sq ft, no separate kitchen, and no advertising of the rented quarters on the premises (sec. 60-410A accessory uses, item 20 in R districts / item 11 in MF districts).
- "Tourist home" and tearoom are expressly excluded from customary home occupations (Ch. 60, Art. II), closing the home-occupation route to running an STR.
- The business/industrial use schedule (sec. 60-410B, 60 Attachment 4) is likewise exclusive and lists no hotel, motel, inn or bed-and-breakfast use; the only transient accommodation mentioned is accessory guest lodges for visitors of office/research campus occupants.
- No STR-specific local law or rental registration scheme exists: full-code search (legislation through 07-08-2025) found no short-term-rental provision, and the town's Approved Legislation page for 2022-2025 lists none.
- Sec. 60-400A: no land or structure may be used for any purpose except in accordance with the zoning chapter.
Sources: Town of New Castle, NY Code (eCode360, official codification; direct fetch blocked, consulted via archived copies below); Full Town of New Castle Code print view, incl. Ch. 60 Zoning Art. II Definitions and sec. 60-400/60-410 (archived Oct 29, 2025; legislation through 07-08-2025); Sec. 60-410A Schedule of Regulations for Residence Districts, Use Regulations (60 Attachment 2); Sec. 60-410B Schedule of Regulations for Business and Industrial Districts, Use Regulations (60 Attachment 4); Town of New Castle Approved Legislation 2022-2025 (no short-term-rental local law adopted). Last reviewed 2026-07.
How short-term rentals are regulated in New York
- New York has no single statewide short-term-rental ban. Towns, villages, and cities set their own rules through local ordinances and zoning, so rules can differ sharply between neighboring municipalities in the same county.
- Short stays in New York are generally subject to state and local sales tax, and many counties add a local occupancy (hotel/motel) tax, often collected by the booking platform on the host's behalf.
- Common local controls include permits or registration, primary-residence requirements, and zoning limits on which districts allow short-term use. In New York, a town and a village inside it can each have their own rule.
- Rules change. An ordinance can be added or amended at any time. Always confirm the current rule with the municipality before listing.
New Castle (town, incl. Chappaqua and Millwood hamlets) short-term-rental FAQ
Can I run a short-term rental (Airbnb) in New Castle (town, incl. Chappaqua and Millwood hamlets), NY?
Short-term rentals (under about 30 nights) are not a permitted use in the Town of New Castle: the zoning code defines a dwelling as "nontransient living quarters" (expressly excluding hotels, tourist homes, guest houses, rooming houses), and the residence-district use schedule states that all uses not listed are prohibited, with no short-term or transient rental use listed. The only lawful room rental is one bedroom in an owner-occupied one-family home to a single nontransient roomer or boarder staying at least one month; the town has no STR permit or registration law.
Do I need a permit or registration to run an STR in New Castle (town, incl. Chappaqua and Millwood hamlets)?
Residence-district use schedule is exclusive: "The following are the only uses permitted in residence districts. All uses not listed shall be deemed to be prohibited" (Town Code sec. 60-410A, 60 Attachment 2); no short-term rental, transient lodging, tourist home, or bed-and-breakfast use is listed in any residence district.
What taxes apply to a short-term rental in New Castle (town, incl. Chappaqua and Millwood hamlets), New York?
Short-term stays in New York are generally subject to state and local sales tax, and many counties add a local occupancy (hotel) tax, often collected for you by the booking platform. A tax professional can confirm what applies to your property.
Can Palisade Stays manage a short-term rental in New Castle (town, incl. Chappaqua and Millwood hamlets)?
Short-term rentals face real limits in New Castle (town, incl. Chappaqua and Millwood hamlets) (see the status above), so it may not be the right play. Palisade Stays can still help you understand what's possible for your property, including a compliant mid-term or longer rental, and run it if it's a fit. Start with a quick assessment.
Navigating New Castle (town, incl. Chappaqua and Millwood hamlets)'s rules?
We'll help you find out what's actually possible for your New Castle (town, incl. Chappaqua and Millwood hamlets) property, short-term, mid-term, or otherwise, and run it if it's a fit.
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