Passaic, NJ Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Tax rate
- 3% of rent
- Effective date
- Feb. 3, 2026 (Ord. 2513-26)
- Statutory authority
- N.J.S.A. 40:48F-1 et seq.
- Penalty
- $500 per offense
- Who remits
- Host or person collecting the rent
Summary
Every short-term rental stay booked in Passaic carries a 3% municipal occupancy tax under City Code § 275-24, charged on top of the rent and any other applicable tax. Adopted February 3, 2026 by Ordinance No. 2513-26, the tax rides alongside the state's own transient accommodation levy rather than replacing it, and hosts who collect rent from guests are the ones responsible for charging, holding and remitting it to the city.
A. There is hereby established an occupancy tax which shall be fixed at a uniform percentage rate of 3% on charges of rent for every occupancy of a short-term rental unit, hotel or motel room or transient accommodation in the City of Passaic that is subject to taxation pursuant to N.J.S.A. 54:32B-3d. B. The short-term rental unit, hotel and motel room occupancy tax shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of a short-term rental unit, hotel or motel room.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4978046; v41 updated 2026-07-01; through 07-01-2026).
Full Breakdown
Passaic's short-term rental occupancy tax sits in Article V of Chapter 275, Taxation, adopted by Ordinance No. A. L. 2018, c. 49 (§ 275-23). That state law lets a municipality tax rent for any occupancy of a room in a hotel or transient accommodation at up to 3%, and Passaic set its rate at the full 3% ceiling. A. 54:32B-3d, and states the local tax stacks on top of any other tax or fee already owed to any governmental entity. A. A. 54:32B-2 rather than writing a separate local one.
Section 275-26 puts the compliance burden on the host: the tax must be paid by the guest, a host may not absorb it into the nightly rate, and a host may not advertise that the tax is included, will not be charged, or will be refunded. Section 275-27 makes the person who collects the rent, typically the host or the platform remitting on the host's behalf, personally liable for the tax, with the same collection rights against the guest as for rent itself, and requires the city's Chief Financial Officer to be joined as a party in any court action to collect unpaid tax.
Violations & Fines
Absorbing the tax into the rental rate, or advertising that the tax won't be separately charged, refunded, or is already included, is a violation of § 275-26 punishable by a $500 penalty for each offense. Each day a noncompliant advertisement or representation continues counts as a separate offense, and the City's Chief Financial Officer can be joined in any civil action brought to collect unpaid tax under § 275-27.
Frequently Asked Questions
What is the occupancy tax rate for a short-term rental in Passaic?
Who actually pays Passaic's short-term rental tax?
Can a host just build the tax into the nightly rate instead of itemizing it?
Are any short-term rental guests exempt from the Passaic tax?
Sources & Official References
Other rules in Passaic
How Passaic compares: Cities with the Highest Short-Term Rental Taxes·Compare Passaic to another location·View the New Jersey short-term rentals overview
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