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

Short-term rental regulation in Passaic County operates on three layers, none of them at the county level. State tax layer: P.L. 2018 c. 49 (effective October 1, 2018) extended NJ Sales Tax (currently 6.625%) and the State Occupancy Fee (5% statewide) to transient accommodations rented through a transient space marketplace or operated as a professionally managed unit. P.L. 2019 c. 235 narrowed the definition so that direct owner rentals of fewer than three units (booked without a marketplace and not professionally managed) are exempt from State Sales Tax and the State Occupancy Fee. Marketplaces such as Airbnb and Vrbo are required to collect and remit the tax on the host's behalf when used. Municipal tax layer: under N.J.S.A. 40:48F-1 et seq., NJ municipalities may impose a Municipal Occupancy Tax of up to 3% on transient accommodations. Permit/zoning layer: each Passaic County municipality decides whether to require an STR permit, registration, or rental license. As of 2024-2025, Paterson does not have a specific short-term rental ordinance; however, all residential rental properties in Paterson are subject to the city's rent control ordinance and require annual rent-roll registration with the Department of Property Maintenance by September 1. Wayne, Clifton, Passaic, and other towns have varying rental-license requirements under N.J.S.A. 40:55D and the NJ Hotel and Multiple Dwelling Law (N.J.S.A. 55:13A-1 et seq.). Passaic County itself issues no STR permits.