Cape May County, NJ Short-Term Rentals: Permit Requirements (2026)

Cape May County's STR landscape has three layers: (1) state tax registration, (2) county tourism tax (Wildwoods only), and (3) municipal license/permit. The County government does not run a county-wide STR registry; instead, hosts must comply with state tax law and the rental ordinance of the specific municipality where the property is located.

(1) STATE-LEVEL TAX REGISTRATION (applies countywide). Under N.J.S.A. 54:32B (Sales and Use Tax Act) and N.J.S.A. 54:32D-1 (State Occupancy Fee), rentals of transient accommodations (occupancies under 90 consecutive days) are subject to the 6.625% State Sales Tax and the 5% State Occupancy Fee when the rental is (a) obtained through a transient space marketplace such as Airbnb or Vrbo, or (b) considered a 'professionally managed unit' (owner offers 3 or more units for rent in New Jersey during the calendar year). Under P.L. 2019, c.235, rentals booked directly between owner and renter outside a marketplace, where the owner has fewer than 3 units, are EXEMPT from State Sales Tax and the State Occupancy Fee. Rentals executed by a NJ-licensed real estate broker meeting statutory criteria are also exempt. Owners with 3+ units rented directly must register with the NJ Division of Revenue and Enterprise Services (609-292-9292) for a Certificate of Authority and remit through the Sales and Use Tax (ST-50/ST-51) return; transient space marketplaces register and remit on hosts' behalf.

(2) CAPE MAY COUNTY TOURISM TAX AND ASSESSMENT (Wildwood, North Wildwood, Wildwood Crest only). Under the Tourism Improvement and Development District Act (P.L. 1992, c.165), Cape May County imposes a 2% Cape May County Tourism Sales Tax in Wildwood, North Wildwood, and Wildwood Crest, and a 1.85% Cape May County Tourism Assessment on rents for any occupancy of a room in those Wildwoods communities (effective for rentals on and after April 1, 2003). In addition, the State Occupancy Fee for hotels and transient accommodations in 'The Wildwoods' is set at 3.15% (rather than the standard 5%) under N.J.S.A. 54:32D-1. Combined, transient accommodations in Wildwood, North Wildwood, or Wildwood Crest that are obtained through a marketplace or are professionally managed are subject to 13.625% in state and county taxes and fees: 6.625% State Sales Tax + 2% Cape May County Tourism Tax + 1.85% Cape May County Tourism Assessment + 3.15% State Occupancy Fee. There is no county tourism tax in Cape May City, Avalon, Stone Harbor, Sea Isle City, Ocean City, or any other Cape May County municipality outside the Wildwoods. Under recent NJ legislation, municipalities may also adopt a local tourism tax up to 3%; check with the local clerk for current rates.

(3) MUNICIPAL LICENSE/PERMIT (varies by municipality). The County's two largest STR markets each run their own regime:

- CAPE MAY CITY (Chapter 247, City Code): All rental properties must be registered, inspected, and licensed annually. Residential short-term rental license fee: $300 for properties under 4,000 sq ft, $1,000 for properties 4,000+ sq ft. Each mercantile applicant pays an annual parking surcharge of $25 and tourism fee surcharge of $50. License expires 12 months from issuance. Owners must designate a managing agent residing in Cape May County, NJ. Inspections by the Fire Prevention Bureau are required prior to issuance. All municipal taxes, water, and sewer charges must be current through the tax quarter immediately preceding initial application or renewal. Fees must be paid by May 1; a 10% per-month late fee applies to the square-footage portion. The City charges a 3% municipal accommodations tax on STRs.

- WILDWOOD (Ordinance 1185-20, effective January 13, 2021): Rental Permits are issued by the City Clerk on forms provided by the City. Permit issuance requires approval by the Code Enforcement Department, Fire Chief, and Chief of Police.

- AVALON (Borough Code Chapter 22): All rental units must be registered, inspected, and licensed annually with separate License Fee and Fire Inspection Fee. There is no separate fee for the State Landlord Registration under N.J.S.A. 46:8-27 et seq. Licensing Clerk: 609-967-5918.

- STONE HARBOR (Borough Code Chapter 294): All rental properties and units within the Borough must be registered, inspected, and licensed annually. Inspection conducted under Chapter 294.

- WILDWOOD CREST: Mercantile/Residential Rental License application required with annual fee.

Additional municipal regimes operate in Sea Isle City, Ocean City, North Wildwood, West Wildwood, Lower Township, Middle Township (online STR registration system at middletownship.com), Upper Township, Dennis Township, Cape May Point, West Cape May, and Woodbine. Each has its own fees, deadlines, and inspection cycles; contact the relevant municipal clerk before listing a property.

NJ STATEWIDE LANDLORD IDENTITY REGISTRATION. Under N.J.S.A. 46:8-27 et seq. (Hotel and Multiple Dwelling Law / Landlord Identity Registration Form), every owner of a one- or two-family rental dwelling not occupied by the owner must file a Landlord Identity Registration Form with the municipal clerk and provide a copy to the tenant. This is in addition to (not in lieu of) any municipal STR license.

INSURANCE REQUIREMENT. Effective P.L. 2022, c.92 (the New Jersey Insurance Fair Conduct Act/related landlord insurance requirements), short-term rental owners in NJ generally must maintain liability insurance of not less than $500,000; consult NJ DCA for the precise statutory citation applicable to your municipality and registration form.