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

Under N.J.S.A. 54:32D-1 and the 2018 amendments codified at L.2018 c.49 (effective October 1, 2018, as amended August 9, 2019), a 'transient accommodation' rented through a transient space marketplace such as Airbnb or Vrbo is treated like a hotel room for tax purposes. The state imposes 6.625% Sales Tax under the Sales and Use Tax Act and a 5% State Occupancy Fee on the rent. Mahwah Township is authorized by N.J.S.A. 40:48F-1 et seq. to add a Municipal Occupancy Tax of up to 3% on top of the state taxes; the Township has adopted a hotel/motel occupancy tax under Chapter 20 of its Code. When a guest books through a marketplace, the marketplace is responsible for collecting and remitting all applicable taxes. Direct bookings from the owner to the guest are NOT subject to these taxes unless the owner is a 'professionally managed unit' operator (three or more units rented in New Jersey). Mahwah Township does not require a Certificate of Continued Occupancy for tenant rentals, but New Jersey law (N.J.A.C. 5:70-2.3 and 4.9) requires a smoke detector / CO detector / fire extinguisher certification for every change of occupancy. Landlords must also file a Landlord Identity Registration with the municipal clerk under N.J.S.A. 46:8-28.