Wildwood Short-Term Rentals: The 13.625% Tax Stack and Rental Licenses in the Three Wildwoods

A Wildwood airbnb can be a solid investment, but the paperwork has more layers than most new hosts expect. You deal with the state on formation and taxes, the county on a tourism charge, and your city on the rental license itself. Miss one layer and you may collect tax you did not need to collect, or rent a unit without the permit the town requires.

This guide walks through a Wildwood short term rental setup in order: form the entity, register with the state, understand the 13.625% tax stack that applies in Wildwood, North Wildwood and Wildwood Crest, and find out what each town charges to license the unit. Where a figure is not confirmed, we say so and name the office to ask.

What You Will Need Before You File

Gather these items first. Missing one of them is the most common reason a first filing stalls.

• A New Jersey street address for the registered office. A PO box can be listed only if the street address is listed too.
• A registered agent who is either an individual or a business entity in good standing with the State Treasurer.
• The property deed, or a written lease or owner consent that allows short-term rental of the unit.
• Your federal Employer Identification Number (EIN) from the IRS if you form an LLC or corporation.
• A login for the New Jersey Business Portal, where formation and tax registration are filed online.
• Funds for the state filing fee ($100), an optional name reservation ($50), and the first annual report later ($75).
• A separate bank account for rental income and expenses, and an account on the booking platform you plan to use.

Step 1: Pick a Structure and Check the Name

Many hosts operate as a sole proprietor at first, but an LLC keeps the rental income and liability separate from your personal finances. New Jersey does not charge a franchise tax on LLCs. Profits pass through to the members and are taxed under the New Jersey Gross Income Tax at graduated rates from 1.4% to 10.75%. If your LLC is treated as a partnership, has more than two owners and earns New Jersey source income, it owes a $150 partnership filing fee per owner, capped at $250,000, reported on Form NJ-1065 with a 50% installment prepayment. An LLC that elects corporate treatment pays Corporation Business Tax instead. Ask a CPA which structure fits your ownership and income before you file.

Your LLC name must include a designator such as LLC, L.L.C., Limited Liability Co. or Limited Liability Company. It must also be distinguishable from every other name in the state business database. Search availability at the New Jersey business name search before you commit to a name, and do not rely on a domain or social media handle as proof that the name is free.

If you want to hold the name while you gather paperwork, you can reserve it for 120 days, renewable, for $50. A sole proprietor who operates under a trade name files that name with the county clerk, and county fees are set by each county. An LLC that uses a different name than its certificate of formation files an Alternate Name Registration with the state for $50, with a $50 renewal.

Step 2: File the Certificate of Formation

File the Certificate of Formation (the Public Records Filing for New Business Entity under Title 42) through the Online Business Entity Filing portal. The filing fee is $100 for LLCs and corporations as of July 1, 2026. If you see $125 on an older page or a competitor's site, that figure is out of date.

Online filings are usually entered and reflected in state records in about one business day. Mailed filings take longer. Expedited service is available only for over-the-counter and fax requests and does not apply to online filings, so do not plan on rushing an online filing with an expedite fee.

Once the LLC is formed, mark a calendar entry for the $75 annual report. It is due every year by the last day of the month in which the business was formed. Two consecutive missed years lead to revocation, so this is a deadline to track, not one to remember later.

Step 3: Name a Registered Agent in New Jersey

Every LLC must name exactly one registered agent and maintain a registered office in New Jersey. The registered office has to be a New Jersey street address. If you live out of state, the agent is the person or service that accepts legal papers for the LLC during business hours, so choose one you trust to forward mail promptly. Changing the agent or office costs $25, and an agent who resigns without naming a successor triggers the same $25 charge.

Step 4: Register With NJ-REG Before the First Booking

New Jersey has no statewide general business license. Instead, every business completes tax and employer registration with the Division of Revenue and Enterprise Services using Form NJ-REG after forming. That registration produces your New Jersey tax identification number and, where applicable, a sales tax certificate of authority. You need the sales tax piece because lodging in a short-term rental is subject to New Jersey sales tax.

Registration is done through the New Jersey Business Portal. People often call the result a Business Registration Certificate (BRC), but the BRC is proof that you registered with the Division of Revenue. It is not a license, and it does not authorize you to rent a room. Separately, a BRC is required for certain contractors and subcontractors working for the State or public agencies. If you plan to do your own repair or renovation work on rental property, ask the Division of Revenue and Enterprise Services whether that work triggers the contractor requirement.

Counties in New Jersey do not issue business licenses, so the county clerk is not where you apply for a rental license. Your city is.

Step 5: Understand the 13.625% Tax Stack

For marketplace or professionally managed short-term rentals in Wildwood, North Wildwood and Wildwood Crest, the total tax on a stay is 13.625%. That rate has applied to short-term rentals since April 1, 2022. It is made up of four pieces:

Component	Rate
New Jersey sales tax	6.625%
Cape May County Tourism Tax	2%
Tourism Assessment	1.85%
State Occupancy Fee	3.15%
Total	13.625%

The Cape May County Tourism Tax is the piece most hosts mean when they ask about the Wildwoods tourism tax. Note what the stack leaves out. These three towns cannot levy the 3% municipal occupancy tax that many other New Jersey municipalities charge. If a booking page or a local blog adds a 3% city occupancy line in Wildwood, North Wildwood or Wildwood Crest, verify it before you collect it.

For marketplace and professionally managed rentals, confirm with the New Jersey Division of Taxation how collection and remittance work for your setup. Ask what the booking platform collects on your behalf and what you still have to report yourself. If you rent without a marketplace, or you use a manager who does not collect the full stack, ask the Division of Taxation who is responsible for each piece before your first night. Taxes that are not collected at booking can become a liability you owe later.

Step 6: Get Each Town's Rental License

Each city requires its own rental license. Do not assume a license in one town covers a property in another. Here is what we have verified and what still needs confirmation.

North Wildwood. The City Clerk's 2026 permit information sets the fees as follows. The rental license charges $12 per sleeping room, plus a Greater Wildwood Tourism Improvement and Development Authority fee of $300 per condo, $175 per apartment or house, and $675 per rooming house. Before you budget, confirm the current amounts with the North Wildwood City Clerk, because permit fees change and the figures above are the 2026 schedule.

Wildwood. Contact the Wildwood city clerk for the current rental license fee and the mercantile license fee. Do not treat any fee you see elsewhere as settled until the clerk confirms it.

Wildwood Crest. Contact the Wildwood Crest clerk for the rental license fee and any mercantile fee that applies.

West Wildwood. West Wildwood is a separate borough. The 13.625% stack described above is the rate for Wildwood, North Wildwood and Wildwood Crest, so do not apply it to a West Wildwood property without confirming the local rate with the borough and the Division of Taxation.

When you call a clerk, ask four questions: Is the license annual or one time? What inspections or safety checks come with it? Does the fee depend on the unit type? And what is the deadline to apply before your first booking? Get the answers in writing.

Step 7: Check Mercantile Licensing and the UEZ Rate

Many people who run a short-term rental also sell something on site, such as beach gear, bicycles, snacks, or souvenirs. If you sell goods, ask the Wildwood city clerk whether a mercantile license applies to your activity. A rental license and a mercantile license are separate questions, and one does not replace the other.

Wildwood, North Wildwood, Wildwood Crest and West Wildwood are all Urban Enterprise Zone (UEZ) towns. Certified retailers in a UEZ may charge 3.3125% on qualifying sales instead of the standard 6.625% state rate. This is not automatic. You must be certified, and you must confirm that a particular sale qualifies. Whether a lodging stay or a merchandise sale counts is a question for the New Jersey Division of Taxation. Until you have that answer in writing, collect the standard rate.

Step 8: Calendar the Recurring Deadlines

Set up reminders for every recurring obligation before you open the listing. At minimum, track the LLC annual report ($75, due by the last day of the formation anniversary month), your sales tax filing schedule, any city license renewal, and the tourism tax reporting your booking platform or manager requires. Missing a single renewal can interrupt bookings, which costs more than the fee.

Tips and Common Mistakes to Avoid

• Using an old fee. The LLC filing fee is $100 as of July 1, 2026. Older pages showing $125 are wrong.
• Treating the BRC as a license. The Business Registration Certificate proves tax registration. It does not authorize rentals.
• Looking for a county license. New Jersey counties license nothing, and the state has no general business license. Your permits come from your city.
• Collecting a 3% city occupancy tax in the three Wildwoods. These towns cannot levy it. Confirm every line item on your booking page.
• Assuming one town's rules apply everywhere. North Wildwood's fee schedule does not tell you what Wildwood or Wildwood Crest charges.
• Forgetting the publication step. New Jersey does not require a newspaper publication for a new LLC, so you do not need to pay for one.
• Relying on a notary for wedding bookings. Notaries cannot officiate weddings in New Jersey. If your marketing promises ceremonies, you will need to arrange a licensed officiant separately.
• Mixing personal and rental money. Use a separate account from day one so your tax records match what the platform reports.

Expected Results

Hosts who complete these steps in order often find that the setup is less tangled than it first looked. A filed LLC with a separate account and clear tax registration may make it easier to reconcile booking reports with what you owe, and a written answer from each clerk can reduce the chance of an unexpected permit requirement later. These outcomes depend on your property, your ownership, and the local rules at the time you apply, so treat them as possibilities to work toward, not guarantees.

Official Resources

• New Jersey Division of Revenue and Enterprise Services (DORES), Department of the Treasury
• Online Business Entity Filing (NJ Business Portal)
• New Jersey Division of Taxation
• New Jersey Small Business Development Centers (NJSBDC), a free source of help with business planning
• U.S. Small Business Administration, New Jersey district

This article is general information about forming a business and renting property in New Jersey. It is not legal or tax advice, and it does not create an attorney-client or accountant-client relationship. Tax rates, fees and license requirements change, and the figures here reflect the sources we verified on October 13, 2026. Confirm every number with the agency or clerk named in this guide before you rely on it. If your ownership, financing, or rental arrangement is complex, speak with a qualified New Jersey attorney and a CPA before you form the entity or take your first booking.