Short-term rental & Airbnb taxes in Cape May, NJ (2026)
Short-term rental guests in Cape May pay roughly 14.63% in combined occupancy and lodging taxes. Here's the itemized breakdown, who collects each one, and what you may need to remit yourself.
Itemized tax rates
| Tax | Rate | Who collects |
|---|---|---|
| New Jersey Sales TaxApplies to transient accommodations obtained through a transient space marketplace (Airbnb/Vrbo collect and remit) or that are professionally managed units (owner offering 3+ units collects on direct bookings). Exempt: rentals executed by a licensed NJ real estate broker with offsite key handoff; direct-from-owner rentals (no marketplace, fewer than 3 units) since Aug 9, 2019; leases of 90+ consecutive days. | 6.625% | varies |
| New Jersey State Occupancy FeeImposed at 5% on transient accommodation rentals that are subject to Sales Tax; same marketplace-collection rules and broker/direct-owner exemptions apply. | 5% | varies |
| Cape May City Municipal Occupancy TaxCity hotel/motel occupancy tax (3% since 7/1/2004) extended to transient accommodations effective 1/1/2022 per the NJ Division of Taxation municipal tax list. Collected alongside state taxes: by the marketplace for platform bookings, otherwise by the person collecting the rent. Combined burden on taxable STR bookings is approximately 14.625%. | 3% | varies |
What will guests pay on a Cape May stay?
Enter a nightly rate to see the itemized occupancy-tax cost.
Cape May occupancy tax calculator
| Gross rent | $450.00 |
| New Jersey Sales Tax (6.625%)· collection varies | $29.81 |
| New Jersey State Occupancy Fee (5%)· collection varies | $22.50 |
| Cape May City Municipal Occupancy Tax (3%)· collection varies | $13.50 |
| Total tax (14.63%) | $65.81 |
| Guest pays | $515.81 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Keep going
Verified July 13, 2026. Informational only — not legal, tax, or financial advice. Tax rates and collection rules change; confirm current requirements with Cape May and your booking platform.