Jersey City Airbnb Rules: The 60-Night Cap, Permits and the 13.625% Tax

If you plan to rent a unit on Airbnb or a similar platform in Jersey City, one local law controls most of what you can do. That law is Ordinance 19-077. Jersey City voters upheld it on November 5, 2019, and a federal court also upheld it in Nekrilov v. Jersey City (2021). The core rule is straightforward: you need a short-term rental (STR) permit, and if the owner is not on site, the unit can be rented no more than 60 nights a year. The hard part is working out what that means for your property, your building and your tax obligations, so this guide walks through the process in order.

Important: This article is informational content, not legal or tax advice. Ordinances, permit procedures and tax rules change. Confirm every figure below with the city or the state agency named before you spend money or accept a booking. If you own several properties, hold the unit in a business entity, or your building has rules on short-term stays, talk to a qualified attorney and a certified public accountant (CPA) first.

What You Need Before You Start

Gather these items before you apply for a permit or create a listing. Having them ready prevents the most common delays.

• Proof of ownership or written permission. A deed works if you own the unit. If you rent it, you need a lease that allows subletting or short-term guests, signed by the owner.
• Your building's rules. Pull your lease, any mortgage terms that affect rentals, and any condominium or co-op association rules. A building can restrict short-term stays even when the city permits them.
• A night-count calendar. Make a spreadsheet of the nights you expect to rent over the next twelve months. You will need it to test the 60-night cap.
• Tax registration details. The state registration form (Form NJ-REG) asks for identifying information about your business or personal tax setup. Read the current form for the exact list before you start.
• A booking records system. Use your platform's host dashboard exports or a simple ledger that records check-in date, check-out date, nightly rate and taxes collected.
• Official links bookmarked. The New Jersey Division of Taxation and the NJ Business Portal registration page are where state tax registration happens.

Step 1: Determine Whether the Owner Is on Site

Ordinance 19-077 treats hosts differently depending on whether the owner is on site. A permit is required in every case, but the 60-night yearly cap applies when the owner is not on site. That makes the on-site question the first thing to settle.

Do not assume that owning the property automatically puts you in the on-site category. Read the ordinance's definition of an owner on site, or ask the city how it applies to your household. An owner who lives in one bedroom and rents the others may be treated differently from an investor who rents a unit they never occupy. Get the answer in writing if you can, and keep a copy with your records.

Step 2: Understand the 60-Night Cap

When the owner is not on site, the rental cannot exceed 60 nights in a year. The cap counts nights, not dollars, so your revenue ceiling depends on your nightly rate. For example, 60 nights at an average of $200 comes to $12,000 in lodging charges before taxes and platform fees. A 61st night would put you over the limit.

Track the count yourself. Do not assume the booking platform enforces the cap for you. Platform calendars show availability, but the city's rule is the one that counts. Counting rules for partial nights, same-day check-outs and cancellations are details to confirm with the city before your first season.

Step 3: Check the Current Permit Rules Before You Buy

Before you buy a property for short-term rental use, or buy a second one, confirm the current permit rules. A 2025 measure, reported as Ordinance 25-059, would limit each person or entity to two permits. City sources do not confirm that ordinance, so treat the reported limit as unverified. Ask the city's municipal offices that administer STR permits for the current text and the status of any amendments, and ask in writing so you have a dated answer.

Step 4: Apply for the Jersey City Short Term Rental Permit

The permit is the foundation of compliance. Ask the city for the current application, the list of required documents, the permit fee and the expected processing time. This article does not state a permit fee or processing period, because those figures must come from the city and can change. Confirm them before you pay anything or sign a booking agreement.

When you prepare the application, match every detail to your lease, deed and building rules. Mismatched occupancy information, or an owner address that differs from the property records, can slow an application. Keep the approved permit in your records, along with your on-site determination from Step 1 and your night-count log.

Step 5: Register With the State for Taxes

New Jersey issues no general statewide business license, and counties license nothing for this purpose. The state's main registration step is tax and employer registration with the Division of Revenue and Enterprise Services (DORES) through Form NJ-REG. That registration produces a New Jersey tax identification number and, where applicable, a sales tax certificate of authority.

You may see a Business Registration Certificate (BRC) mentioned in state materials. The name sounds like a license, but the BRC is proof of NJ-REG tax registration. It is not a permit to operate a short-term rental. Confirm with the Division of Taxation which registration your setup requires, especially if you collect tax yourself. The Division of Taxation site is the right starting point.

Step 6: Calculate the 13.625% Tax Stack

For short-term rentals booked through a marketplace or run by a professional manager, the combined tax figure is 13.625%. It has three parts:

• 6.625% New Jersey state sales tax
• 6% Jersey City hotel tax
• 1% State Occupancy Fee. In Jersey City, this fee was reduced to 1% effective December 1, 2021.

On a $200 night, the three parts work out to $13.25 in state sales tax, $12.00 in city hotel tax and $2.00 in State Occupancy Fee, for a total of $27.25. Build that number into your pricing. Check how your platform adds or collects the tax, because that setup determines whether the charge sits on top of your rate or inside it.

The 13.625% figure applies to marketplace and professionally managed rentals, as described here. Confirm with the Division of Taxation and the city which party is responsible for collecting and remitting each piece when you host directly or through a manager. Jersey City also appears on the state's list for the 3% Meadowlands assessment. Ask the Division of Taxation whether that assessment applies to your rental and how it is collected. Do not treat it as settled until you have that answer.

Step 7: Decide Whether to Hold the Property in a Business Entity

Some hosts hold a rental property through an LLC or corporation. This step is optional, and it has its own costs and rules. Do not form an entity expecting it to change your permit or cap obligations. Confirm that with the city first.

If you form an LLC, New Jersey formation costs $100 since July 1, 2026, filed through the NJ Business Portal. A corporation's filing fee is also $100. Online filings are typically reflected in state records in roughly one business day, while mailed filings take longer. Every LLC owes a $75 annual report, due by the last day of the month in which the business was formed. Two consecutive missed years lead to revocation. Other points to know:

• Name: The name must include a designator such as LLC, L.L.C., Limited Liability Co. or Limited Liability Company, and it must be distinguishable from every other name on the state database. DORES adds a designator if you leave one off.
• Registered office and agent: You must name exactly one registered agent and maintain a New Jersey street address. Changing the agent or office costs $25.
• Publication: New Jersey has no publication requirement.
• Taxes: LLCs pay no franchise tax. Profits pass through to the members and are taxed under the Gross Income Tax at graduated rates from 1.4% to 10.75%. An LLC treated as a partnership with more than two owners and New Jersey source income owes a filing fee of $150 per owner, capped at $250,000, plus a 50% installment prepayment, reported on Form NJ-1065.

Multi-owner rentals deserve a CPA conversation before formation, because the partnership fee and prepayment can change the math.

Hoboken Airbnb Rules: A Different Set of Rules

If your property is in Hoboken, Jersey City's ordinance does not apply to you. Hoboken has no short-term rental ban, but as of 2026 the city was still drafting its own rules. The rules you follow today may change before you finish setting up your listing. Before you list, contact Hoboken's municipal offices and ask whether any draft has been adopted, what it would require and whether it would apply to units already operating. Do not assume the Jersey City tax figures carry over, since the 6% city hotel tax described above is a Jersey City rate.

Is There a Jersey City Airbnb Ban?

Not in the ordinance as described here. Ordinance 19-077 sets up a permit requirement and a 60-night cap for owners who are not on site. It regulates short-term rentals rather than prohibiting them. Hosts who rent without a permit, or who exceed the cap when the owner is absent, are out of compliance. Read the full ordinance text before you rely on this summary, because the details of the on-site definition and the cap rules decide how the law applies to you.

Common Mistakes to Avoid

• Listing before the permit is approved. A listing created early can invite bookings you are not yet permitted to accept.
• Assuming the platform enforces the cap. Track nights yourself, in a log you can show the city.
• Assuming you fall in the on-site category. Confirm the definition and the answer for your household.
• Buying property on the assumption of multiple permits. Verify the status of the reported Ordinance 25-059 limit first.
• Treating the BRC as a license. It is proof of tax registration.
• Ignoring the building. Condominium or co-op rules can restrict short-term stays even when the city permits them.
• Pricing without tax in mind. A $200 rate carries $27.25 in combined tax at the 13.625% stack.
• Applying Jersey City rules to Hoboken. The two cities are on different tracks.
• Believing an LLC changes your obligations. Confirm with the city whether the permit and cap rules still apply to you after you form an entity.

Tips for Staying Compliant

• During your first season, check the ordinance text and permit status monthly. After that, a quarterly check is a reasonable pace.
• Keep one folder with the permit, your on-site determination, the night-count log, the tax registration confirmation and your tax remittance records.
• Set a calendar warning at 50 nights for absentee-owner units. That leaves room to stop before the 60-night cap.
• Ask your CPA to review your first year of tax filings, especially if you hold the unit in an entity.

What to Expect

Hosts who work through these steps in order often find that the compliance work is mostly recordkeeping: a permit file, a night-count log and tax records that match each booking. Your results will depend on your property type, your building's rules, the city's processing time and the on-site category that applies to you. Treat the timeline as open-ended until the city confirms its permit process, and plan your first booking date after the permit is in hand.

Frequently Asked Questions

Can I rent a room in my home without the cap?

Possibly, depending on how the ordinance defines an owner who is on site. Get that definition from the ordinance text or from the city before you list.

Does a permit let me rent every night of the year?

Not if the owner is absent. The 60-night cap applies when the owner is not on site, so a permit alone does not remove it.

Do I need a county license?

New Jersey counties license nothing for this purpose. Your main obligations come from the city permit and state tax registration.

For advice on a specific property, talk to a qualified attorney and a CPA. The city and the state agencies linked above are the final sources for current rules.