Short-Term Rental Tax in New Jersey (NJ)
The state-level tax rate on short-term rentals in New Jersey is 11.6% , consisting of 6.6% sales tax and 5.0% lodging tax. New Jersey has enacted taxes specifically targeting short-term rentals. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Jersey City reaches 14.6%. STR operators must register with the state. New Jersey charges a 6.625% sales tax plus a 5% state occupancy fee on transient accommodations. Municipalities may add a local occupancy tax of up to 3%. STR operators must register with NJ Division of Taxation.
Annual Tax Estimate for New Jersey
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Jersey City).
| Nightly Rate | Gross Revenue | State Tax (11.6%) | Jersey City Tax (14.6%) |
|---|---|---|---|
| $100.00/night | $23,700 | $2,755 | $3,466 |
| $150.00/night | $35,550 | $4,133 | $5,199 |
| $200.00/night | $47,400 | $5,510 | $6,932 |
| $300.00/night | $71,100 | $8,265 | $10,398 |
| $500.00/night | $118,500 | $13,776 | $17,331 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in New Jersey
Local taxes significantly impact the total STR tax burden in New Jersey. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 14.6% in Jersey City.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Jersey City | 3.0% | 14.6% | $29.25 | High | Jersey City 3% municipal occupancy tax. STR permit required. |
| Cape May | 3.0% | 14.6% | $29.25 | High | City of Cape May 3% luxury tax. Very popular vacation rental area. |
| Atlantic City | 3.0% | 14.6% | $29.25 | High | Atlantic City 3% luxury tax. |
| Long Beach Island | 3.0% | 14.6% | $29.25 | High | LBI townships 3% luxury tax. Active vacation rental market. |
How New Jersey Compares to Other States
Below is a comparison of New Jersey with five states that have similar state-level STR tax rates. This comparison helps illustrate where New Jersey stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| New Jersey (NJ) | 11.6% | 6.6% | 5.0% | Yes | Required |
| Massachusetts (MA) | 11.7% | 6.3% | 5.7% | Yes | Required |
| Rhode Island (RI) | 12.0% | 7.0% | 5.0% | Yes | Required |
| West Virginia (WV) | 12.0% | 6.0% | 6.0% | Yes | Required |
| Arizona (AZ) | 11.1% | 5.6% | 5.5% | Yes | Required |
| Illinois (IL) | 12.3% | 6.3% | 6.0% | Yes | Required |
Frequently Asked Questions About New Jersey STR Taxes
What is the short-term rental tax rate in New Jersey in 2026?
The state-level tax rate on short-term rentals in New Jersey is 11.6%, consisting of 6.6% sales tax and 5.0% lodging tax. Local taxes can bring the total to 14.6% in cities like Jersey City. At $200/night with 65% occupancy, the state-level tax alone is approximately $5,510 per year.
Does Airbnb collect STR taxes in New Jersey?
Yes. Airbnb, Vrbo collect state occupancy fee. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in New Jersey?
Yes. New Jersey requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in New Jersey also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Jersey City, New Jersey?
The total combined tax rate in Jersey City is 14.6%, which includes the 11.6% state rate plus 3.0% in local taxes. Jersey City 3% municipal occupancy tax. STR permit required. At $200/night with 65% occupancy, this amounts to approximately $6,932 per year in taxes.
How much will I owe in STR taxes in New Jersey?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (11.6%), a property earning $200/night with 65% occupancy would owe approximately $5,510/year in state taxes alone. In Jersey City, the total tax at the same rate would be approximately $6,932/year. Use our STR tax calculator for a customized estimate.
Calculate Your New Jersey STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in New Jersey. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.