New Jersey Short-Term Rental Laws by City (2026)
Short-term rental rules in New Jersey are set city by city — a property that is legal to rent nightly in one town can be prohibited a few miles away. The table below covers 2 New Jersey cities (2 human-verified against official sources), with each city's legal status, permit cost, and last-verified date.
Statewide short-term rental rules in New Jersey
New Jersey has no statewide short-term rental license or permit and does not preempt local regulation — the state expressly authorizes municipalities (N.J.S.A. 40:52-1(n)) to license and regulate rentals of under 175 days, and towns may permit, restrict, or effectively ban STRs. At the state level, since October 1, 2018 stays booked through a 'transient space marketplace' (Airbnb, Vrbo, etc.) or in a 'professionally managed unit' (owner offering 3+ units) owe 6.625% Sales Tax plus a 5% State Occupancy Fee, which platforms must collect and remit; rentals booked directly by small owners (fewer than 3 units, no marketplace) or executed offline by a licensed NJ real estate broker are exempt. A pending 2026 bill (S4453/A5172) would require owner presence during short-term stays (waivable by written agreement with the tenant) and limit properties to one rental agreement at a time. City and county rules apply on top of state law — check your local market's page.
Full statewide rules: permits, taxes & enforcement
New Jersey has no statewide short-term rental license or permit and does not preempt local regulation — the state expressly authorizes municipalities (N.J.S.A. 40:52-1(n)) to license and regulate rentals of under 175 days, and towns may permit, restrict, or effectively ban STRs. At the state level, since October 1, 2018 stays booked through a 'transient space marketplace' (Airbnb, Vrbo, etc.) or in a 'professionally managed unit' (owner offering 3+ units) owe 6.625% Sales Tax plus a 5% State Occupancy Fee, which platforms must collect and remit; rentals booked directly by small owners (fewer than 3 units, no marketplace) or executed offline by a licensed NJ real estate broker are exempt. A pending 2026 bill (S4453/A5172) would require owner presence during short-term stays (waivable by written agreement with the tenant) and limit properties to one rental agreement at a time. City and county rules apply on top of state law — check your local market's page.
Reviewed by the STR Rule Watch research team against 8 official sources. How we verify data
New Jersey statewide STR rules at a glance
| Legal status | Allowed, no permit required |
|---|---|
| Permit required | No |
| Renewal | No renewal required |
| Total occupancy taxes | ~14.63% of gross revenue |
| Insurance | No statewide short-term rental insurance mandate. |
| Enforcement | The NJ Division of Taxation administers all transient accommodation taxes and may audit transient space marketplaces. |
| Current rules effective | 2018-10-01 |
State law & local authority
No preemption — New Jersey is a home-rule state and affirmatively delegates STR regulation to municipalities. N.J.S.A. 40:52-1(n) authorizes municipalities to license rentals of real property 'for a term less than 175 consecutive days for residential purposes by a person having a permanent place of residence elsewhere,' and DCA's Division of Local Government Services confirms that 'rental of short-term transient accommodations is largely subject to municipal ordinance' (LFN 2026-09, Apr. 2026). Cities may permit, register, cap, restrict to owner-occupied units, or prohibit STRs; the Third Circuit upheld Jersey City's restrictive ordinance against takings/contract-clause challenges in Nekrilov v. City of Jersey City, 45 F.4th 662 (3d Cir. 2022). Municipalities may also adopt a local Municipal Occupancy Tax of up to 3% on transient accommodations under N.J.S.A. 40:48F-1 to -7.
State-level taxes
| Tax | Rate | Who collects |
|---|---|---|
| NJ Sales Tax (transient accommodations)Applies only to rentals under 90 consecutive days that are obtained through a transient space marketplace OR are a professionally managed unit (owner offering 3+ units). Marketplaces (Airbnb, Vrbo) must collect and remit for bookings made through them; owners of professionally managed units collect on direct bookings. Exempt: direct-by-owner rentals of fewer than 3 units not booked via a marketplace, and rentals executed offline by a licensed NJ real estate broker (keys provided at broker's offsite office, no hotel services). P.L. 2018, c.49 as amended by P.L. 2019, c.235. | 6.625% | varies |
| State Occupancy Fee5% statewide on transient accommodations subject to Sales Tax. Per TB-81R2, reduced to 1% in Elizabeth (eff. Oct. 2, 2018) and Jersey City (eff. Dec. 1, 2021) — each amended its ordinance to impose its own 6% hotel occupancy tax on transient accommodations — and to 3.15% in Wildwood, Wildwood Crest, and North Wildwood (eff. Apr. 1, 2022; 2% Cape May County Tourism Tax + 1.85% Tourism Assessment). TB-81R2 (rev. 02/2022) states the fee drops to 1% in Newark or Atlantic City only if those cities amend their ordinances to tax transient accommodations; Newark's current code (Rev. Code ch. 10:20) now imposes its 6% tax on hotels and transient accommodations, so the 1% state fee applies to Newark STRs, while Atlantic City has not amended (STRs there pay the full 5% and no AC Luxury Tax). Marketplace collects when booked through it. Separately, any other municipality may adopt a local-option Municipal Occupancy Tax of up to 3% (N.J.S.A. 40:48F-1 to -7), also administered by the Division of Taxation. | 5% | varies |
| Meadowlands Regional Hotel Use AssessmentState-imposed regional assessment applying only to transient accommodations located in 14 Meadowlands-area municipalities in Bergen County (Carlstadt, East Rutherford, Little Ferry, Lyndhurst, Moonachie, North Arlington, Ridgefield, Rutherford, South Hackensack, Teterboro) and Hudson County (Jersey City, Kearny, North Bergen, Secaucus). Same marketplace/professionally-managed-unit trigger and exemptions as Sales Tax. | 3% | varies |
Enforcement & penalties
The NJ Division of Taxation administers all transient accommodation taxes and may audit transient space marketplaces. Persons required to collect the taxes are personally liable for uncollected/unremitted amounts (N.J.S.A. 40:48F-3(b) for municipal occupancy tax; owner personal liability stated in TB-81R2). Marketplaces must retain transaction data (host name, guest name, unit address, dates and nightly rates, municipal registration number, listing URLs, whether the booking was whole-unit or partial) for at least 4 years — a de facto statewide platform data-retention rule. Separately, the NJ Uniform Fire Code (N.J.A.C. 5:70-2.3) requires a Certificate of Smoke Alarm, Carbon Monoxide Alarm, and Portable Fire Extinguisher Compliance (CSACMAPFEC), issued by the local fire official, before a one- or two-family dwelling is sold, leased, or subject to a change of occupancy. Operational STR enforcement (permits, inspections, caps) happens at the municipal level.
No statewide STR-specific penalty scheme exists; tax non-compliance is enforced under state tax law with personal liability for collectors. Pending bill S4453 (2026) would impose a $1,000 civil penalty per violation, recoverable in a summary proceeding, for violating its proposed owner-presence and one-agreement-at-a-time rules.
Statewide sources
- NJ DCA Division of Local Government Services, Local Finance Notice LFN 2026-09: Short-Term Transient Accommodations (Apr. 7, 2026)retrieved July 11, 2026
- NJ Division of Taxation, Technical Bulletin TB-81R2: Taxes Imposed on the Rental of Transient Accommodationsretrieved July 11, 2026
- NJ Division of Taxation, Transient Accommodations Frequently Asked Questionsretrieved July 11, 2026
- P.L. 2018, c.49 (imposed Sales Tax and State Occupancy Fee on transient accommodations)retrieved July 11, 2026
- P.L. 2019, c.235 (narrowed taxes to marketplace-booked and professionally managed units)retrieved July 11, 2026
- NJ Legislature, S4453 (2026-2027): owner-presence and rental-agreement-limit bill (introduced text)retrieved July 11, 2026
- Nekrilov v. City of Jersey City, No. 21-1786 (3d Cir. Aug. 16, 2022) — upholding local STR restrictionsretrieved July 11, 2026
- City of Newark Revised Code ch. 10:20 — Hotel Occupancy and Transient Accommodation Tax (6% on hotels and transient accommodations; basis for 1% State Occupancy Fee in Newark)retrieved July 11, 2026
| City | Status | Permit fee | Last verified |
|---|---|---|---|
| Cape May | Permit required | $125 | July 13, 2026 |
| Trenton | Permit required | $300 | July 21, 2026 |
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This page is informational only and is not legal, tax, or financial advice. Regulations change frequently — verify current requirements with each jurisdiction before operating. HOA and condo rules may prohibit short-term rentals regardless of city law.