Newark imposes a 7% local hotel occupancy tax under NJ §40:48F-1, on top of the 6.625% New Jersey sales tax and the 5% state hotel fee, reaching about 13.625% total on most hotel stays.
Under NJ §40:48F-1 enabling authority, Newark levies a 7 percent municipal occupancy tax on hotels, motels, and similar transient accommodations. That stacks with the 6.625 percent state sales tax (NJ §54:32B) and the 5 percent state occupancy fee under NJ §54:32D-1, although Newark, Atlantic City, and a few others see a reduced state occupancy fee. The combined Newark hotel rate is therefore around 13.625 percent. Operators collect at booking, file monthly remittances with the Treasurer, and short-term rentals booked through Airbnb-style platforms are also covered.
Failing to collect or remit hotel taxes is a tax-fraud violation drawing back-taxes, interest, civil penalties under NJ §54:52, and potential license suspension for the lodging establishment.
See how Newark's transient occupancy tax rules stack up against other locations.
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