New Jersey State Occupancy Fee and Sales Tax on Short-Term Rentals

Under N.J.S.A. 54:32D-1 and the Sales and Use Tax Act, transient accommodations rented for fewer than 90 consecutive days are subject to 6.625% state Sales Tax and a 5% State Occupancy Fee. Marketplace facilitators such as Airbnb and Vrbo must collect and remit these taxes on bookings unless the host is a registered hotel keeper. Counties and shore towns may add municipal occupancy taxes on top, but the underlying state assessment cannot be waived locally.

Failure to register, collect, or remit can trigger Division of Taxation assessments, interest, and penalties up to 25% of unpaid tax, plus possible criminal charges for willful evasion.