Jersey City imposes a 6 percent municipal hotel occupancy tax on top of the 6.625 percent New Jersey sales and use tax, producing an effective lodging tax around 12.625 percent on transient stays and short-term rentals.
Under N.J.S.A. 40:48F-1, New Jersey allows certain municipalities including Jersey City to impose a local hotel occupancy tax of up to 6 percent. Jersey City has adopted the maximum, which combines with the 6.625 percent state sales tax and a small state hotel occupancy fee to produce roughly 12.625 percent total on every transient lodging night. The tax applies to hotels, motels, bed-and-breakfasts, and platform short-term rentals, except for stays exceeding 90 consecutive days. Operators remit collections to the New Jersey Division of Taxation, which forwards the municipal share to the city.
Failing to collect or remit the 6 percent local tax, misclassifying short-term rentals as long-term tenancies, or pocketing collected amounts can trigger Division of Taxation audits, interest, and personal liability for owners and corporate officers.
See how Jersey City's transient occupancy tax rules stack up against other locations.
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