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

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Tax rate
3% of rent per overnight occupancy
Applies to
Hotels, motels, home-sharing short-term rentals booked online
Interest on unpaid tax
5% per annum
Adopted
November 18, 2019, Ord. No. 2019-16
Enforcing authority
NJ Division of Taxation and Township Tax Collector

Summary

Old Bridge Township taxes short-term rentals booked online the same as hotels and motels: Chapter 234 imposes a 3% Hotel Use and Occupancy Tax on every overnight room charge, and Section 234-2D expressly defines "hotel" to include home-sharing short-term rentals booked using online services, so Airbnb and VRBO hosts owe the tax on every booking.

The Township of Old Bridge does hereby impose a tax, at a uniform percentage of 3% on charges of rent for every overnight occupancy on a room or rooms in a hotel, motel or other short-term overnight rental establishment subject to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966, c. 30 (N.J.S.A. 54:32B-3). ... Any unpaid tax under this article shall be subject to interest at a rate of 5% per annum. ... For purposes of this article, the word "hotel" shall include hotels, motels, boardinghouses, bed-and-breakfasts, and any home-sharing short-term rentals booked using online services.

Full Breakdown

Chapter 234 of the Old Bridge Township Code, the Hotel Use and Occupancy Tax, was adopted November 18, 2019 by Ordinance No. 2019-16 under the authority of N.J.S.A. 40:48F et seq. Section 234-2 imposes a uniform 3% tax on rent charged for every overnight occupancy in a hotel, motel, or other short-term overnight rental establishment, and Subsection D defines "hotel" broadly enough to reach home-sharing short-term rentals booked through online platforms such as Airbnb or VRBO, not just traditional lodging. The municipal tax stacks on top of any other tax or fee already imposed by statute or local ordinance or resolution, and any unpaid balance under this article accrues interest at 5% per year.

The tax is charged to the guest, not absorbed by the host: under Section 234-4, a host may not assume or absorb the tax, advertise that it will be absorbed, or fail to separately state it on the bill. Each such misrepresentation is treated as its own separate offense. Collections are remitted monthly to the State Division of Taxation as the "municipal occupancy tax," and unpaid balances become a lien on the property, ranking on par with delinquent municipal property taxes. A copy of the ordinance must be transmitted to the State Treasurer, and the Township must send the Treasurer an annual list, due by January 1, of every hotel and short-term rental operating in Old Bridge Township, including any that started up during the year.

Violations & Fines

A host or vendor who assumes, absorbs, or advertises that it will absorb the 3% tax commits a separate offense for each occurrence and for each day the advertisement runs, punishable under Chapter 1, Article II, General Penalty, with each day of noncompliance charged as its own violation. Unpaid tax draws 5% annual interest and becomes a lien on the rental property, ranking equally with unpaid municipal property taxes and enforceable through the Township's tax collector.

Frequently Asked Questions

Do Airbnb hosts in Old Bridge Township have to collect the hotel tax?
Yes. Section 234-2D of the Old Bridge Township Code defines "hotel" to include any home-sharing short-term rental booked using online services, so a host renting a room or home through a booking platform must collect the 3% municipal occupancy tax from the guest on every overnight stay, the same as a hotel or motel would.
Can a host just include the tax in the nightly rate instead of charging it separately?
No. Section 234-4 bars a vendor from assuming or absorbing the tax, advertising that it is included, or telling a guest it will be refunded; the tax must be stated separately on the bill or invoice, and each violation is treated as a separate offense.
What happens if the short-term rental tax goes unpaid?
Unpaid tax accrues interest at 5% per year and becomes a lien on the rental property under Section 234-8, ranking on par with delinquent municipal property taxes; the State Treasurer notifies Old Bridge Township of nonpayment and authorizes the Township to collect the outstanding balance directly.

Sources & Official References

Other rules in Old Bridge

All Old Bridge rules

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