Edison, NJ Short-Term Rentals: Taxes & Fees (2026)

Three statutes drive the Edison STR tax stack. First, the New Jersey Sales and Use Tax Act imposes a 6.625% sales tax on the rental of a 'room or rooms in a hotel' that includes a transient-accommodation rental under N.J.S.A. 54:32B-3(d). Second, the New Jersey State Occupancy Fee under N.J.S.A. 54:32D-1 et seq. imposes an additional 5% fee on the same rent (1% in Atlantic City, Newark, Jersey City, and a few statutorily named cities; 5% statewide otherwise, which includes Edison). Third, the same chapter (N.J.S.A. 54:32D-2) authorizes a municipal occupancy tax of up to 3%, and Edison adopted the maximum 3% Municipal Occupancy Tax effective September 1, 2003 (the State of New Jersey municipal occupancy tax table lists Edison in Middlesex County at 3.000% with no later effective-date amendment through April 2026). The expansion of these taxes to short-term rentals at non-hotel residential dwellings is the work of P.L. 2018, c. 49, which broadened the definition of 'transient accommodation' to reach houses, apartments, condominiums, rooms, and other dwellings rented for fewer than 90 days; that statute also created the 'transient space marketplace' category under N.J.S.A. 54:32D-1.1, making Airbnb, Vrbo, Booking.com, and similar platforms responsible for collecting and remitting the Sales Tax, State Occupancy Fee, and any applicable Municipal Occupancy Tax on bookings made through the platform. The 2019 amendment in P.L. 2019, c. 235 narrowed the application slightly by exempting transient accommodations rented (a) directly by the owner without using a transient space marketplace or real-estate broker, and (b) for stays not subject to the 6.625% sales tax under certain conditions, but most Edison STRs operating through a platform remain in scope. The Sales Tax and State Occupancy Fee are remitted to the New Jersey Division of Taxation on Form ST-50/ST-51 (Sales Tax) and Form HM-100 (Hotel Occupancy Fee/Municipal Occupancy Tax); Edison's 3% local tax is collected by the State on the same Form HM-100 and remitted back to the Township under the statutory revenue-sharing framework. There is no separate Edison-administered STR application fee beyond the Chapter 17 rental-license fee paid to the Township Clerk and the re-occupancy inspection fee paid to the Division of Health.