Newark, NJ Hotels & Lodging: Transient Occupancy Tax (2026)

Municipal Occupancy Tax

Any New Jersey municipality, other than Newark, Jersey City, Atlantic City, Elizabeth, Wildwood, North Wildwood, and Wildwood Crest is authorized to amend or adopt an ordinance to impose a Municipal Occupancy Tax of up to 3% on charges for hotel and motel occupancies in that municipality. The Municipal Occupancy Tax is in addition to the State Occupancy Fee and the New Jersey Sales Tax.

Newark, Jersey City, Atlantic City, Elizabeth, Wildwood, North Wildwood, and Wildwood Crest are prohibited from enacting a Municipal Occupancy Tax because those municipalities already impose local taxes or fees on such occupancies.

Billing and Remitting

The Municipal Occupancy Tax is imposed directly on the occupant and must be separately stated as "Municipal Occupancy Tax" on any bill, invoice, or other document provided to the occupant.

Note: Sometimes a hotel or motel will sell package deals that include other components, such as meals, tickets, admissions, transportation, etc. In that case, the Municipal Occupancy Tax should be charged only on the amount related to the room/lodging facility occupancy. However, when a continental breakfast or similar complementary service is offered, it is considered included in the room price and, therefore, is subject to the Municipal Occupancy Tax.

The hotel or motel must file Form HM-100 monthly to remit the Municipal Occupancy Tax collected. The hotel or motel must keep detailed and accurate records of all transactions.

Exemptions from the Tax: The Municipal Occupancy Tax is not imposed when: The occupant is a New Jersey State or federal agency, instrumentality, or political subdivision; the United Nations; or any other international organization of which the United States is a member as long as the occupancy is paid with government funds; The space is rented for the purpose of assembly (e.g. a meeting, seminar, wedding, etc.); The occupancy lasts for at least 90 consecutive days (permanent resident exemption).