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

Paramus has not adopted a local STR registration fee, license, or municipal occupancy tax. Instead, Chapter 322 Article II of the Borough Code, adopted on October 18, 2016 by Ordinance No. 2016-25, declares short-term rentals of 30 days or less for consideration to be prohibited uses and a public nuisance per se. Because STRs are banned, the Borough collects no local STR tax revenue. New Jersey state taxes do, however, reach any rental of transient accommodations that is booked through a transient space marketplace (Airbnb, Vrbo, Booking.com, etc.) or that qualifies as a professionally managed unit under P.L. 2018, c. 49 and P.L. 2019, c. 235. Those state-level charges are: 6.625% New Jersey Sales and Use Tax under N.J.S.A. 54:32B-3; the 5% State Occupancy Fee under N.J.S.A. 54:32D-1 (reduced in Atlantic City, Newark, Jersey City, Elizabeth, and the Wildwoods, none of which apply here); and the 3% Meadowlands Regional Hotel Use Assessment that applies to Bergen and Hudson County hotel and transient accommodations under N.J.S.A. 5:10A-82 et seq. Combined, marketplace bookings carry a 14.625% state-and-regional tax bundle. Airbnb collects and remits these state and regional charges directly under its New Jersey collection agreement. Direct bookings (host-arranged stays not made through a marketplace) by a host renting fewer than three units in a calendar year are exempt from State Sales Tax and the State Occupancy Fee under the 2019 amendment, but the rentals themselves remain unlawful in Paramus regardless of how they are booked.