Hoboken, NJ Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 3% of room rent
- Effective date
- Occupancies on or after July 1, 2004
- Adopting ordinance
- Ord. No. DR-359, adopted 5-22-2008
- Who pays
- Purchaser; vendor may not absorb it
- Stacks with
- State sales tax and other local taxes/fees
- Penalty per offense
- Fine up to $1,250 or 90 days
Summary
In the City of Hoboken, guests pay a 3% hotel and motel room occupancy tax on every room charge, set under § 177-10 and effective for occupancies on or after July 1, 2004. The tax stacks on top of the state sales tax and any other tax or fee, the purchaser alone owes it, and vendors who absorb or hide the charge face fines up to $1,250 per offense.
§ 177-10. Tax established. There is hereby established a hotel and motel room occupancy tax in the City of Hoboken, which shall be fixed at a uniform percentage rate of 3% on charges of rent for every occupancy of a hotel or motel room in the City of Hoboken on or after July 1, 2004, of a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966, c. 40, N.J.S.A. 54:32B-3 (sales tax). § 177-11. Applicability. The hotel and motel room occupancy tax shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of a hotel room. ... ... E. The penalty for violation of the foregoing provisions shall be a fine not exceeding $1,250, a term of imprisonment not exceeding 90 days or a period of community service for a period not exceeding 90 days, or any combination thereof, for each offense.
Full Breakdown
Article V of Chapter 177 of the Hoboken City Code, adopted 5-22-2008 by Ord. No. DR-359, implements N.J.S.A. 40:48F-1 et seq., which lets a municipality tax hotel room rent at up to 3%. Section 177-10 fixes Hoboken's rate at a uniform 3% on rent charged for every occupancy of a hotel or motel room in the City on or after July 1, 2004, layered on top of the room charges already taxed under the state sales tax provision at N.J.S.A. 54:32B-3. Section 177-11 confirms the tax applies in addition to any other tax or fee imposed by any governmental entity on the occupancy.
Under § 177-12, the purchaser, not the vendor, bears the tax: a vendor may not assume or absorb it, and may not advertise or represent to a customer that the tax will be absorbed, not separately stated, or refunded. Each such misrepresentation is a separate offense, and a continuing advertisement is a new offense for each day it runs. Section 177-13 makes the person collecting the room rent personally liable for collecting and remitting the tax to the City, with the Chief Financial Officer joined as a party in any collection action.
Section 177-14 requires the City to send a copy of the article to the State Treasurer and to every hotel or motel located in Hoboken, keeping the industry and the state on notice of the local rate.
Violations & Fines
Section 177-12E sets the penalty for violating the payment and non-absorption rules at a fine not exceeding $1,250, a term of imprisonment not exceeding 90 days, or a period of community service not exceeding 90 days, or any combination of the three, for each offense. Because § 177-12D treats each day of a prohibited representation or advertisement as its own offense, penalties can compound quickly for a vendor that continues to advertise absorbed tax.
Frequently Asked Questions
What is Hoboken's hotel occupancy tax rate?
Is Hoboken's hotel tax on top of the New Jersey sales tax?
Can a Hoboken hotel absorb the occupancy tax for guests?
What is the penalty for violating Hoboken's hotel tax rules?
Sources & Official References
Other rules in Hoboken
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