Rental Rules by City / New Jersey / Cape May

Cape May short-term rental rules & tax calculator

Cape May County, New Jersey · Verified against official sources Oct 24, 2026

📋 The Basics

Can I rent my place short-term here?: Yes, with a permit
Do I need a permit?: Yes. You need an annual City rental (mercantile) license.
What taxes do I pay?: Total about 14.625%. Check your Airbnb payout report to see which ones Airbnb collects; you pay the rest yourself.

Your 3 steps to be legal

Register each unit with the City Clerk.
Pay the license fee by size plus the $75 (verify) in assessments.
Collect NJ and city occupancy taxes.

⚠️ Biggest risk: Advertising before you get the license.

Words confusing? See the glossary. Details and official sources are below.

Tax calculator

Nightly rate ($) Nights Cleaning fee ($)

Rates used: NJ sales tax 6.625% + NJ state occupancy fee 5% + Cape May municipal occupancy tax 3% = 14.625%. Mandatory cleaning fees are included in the taxable total. 14.625% for marketplace-booked or professionally managed rentals per NJ Taxation. Owner-direct rentals may be exempt from some taxes: verify.

What Airbnb collects: Under NJ law, marketplaces like Airbnb collect NJ taxes on bookings they process. Verify in payouts.

This is the general rule for Cape May. Does your address qualify?

The free info covers the city as a whole. Your property can still be different: zoning can change from one street to the next, and an HOA or condo ban can stop rentals even where the city allows them.

Your $49 Compliance Check looks at your exact property:

Whether your exact address and zone allow short-term rentals
A check of HOA / condo rental restrictions to look for
Which permits and tax accounts you personally need
What you're missing right now
A personal report with clear next steps and official sources, by email
A refund if we report a rule in error (refund policy)

🔎 How we check: official city, county and state sources, a last-verified date on every page, and nothing guessed. Learn more

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Rules don't change every week, but they do change, and nobody emails you when they do. We'll alert you when city rules, tourist taxes, HOA-related laws, or Airbnb/Vrbo policies change in Cape May. Cancel anytime.

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Why use this instead of a web search?

Instead of scattered, sometimes outdated pages, you get the city, county and state rules on one page, with official sources linked, a last-checked date, and unconfirmed items marked "verify" instead of guessed. How we verify →

Advanced details (laws, fees, sources)

Rules

Mercantile/rental license	Register each unit with the City Clerk and get an annual mercantile (rental) license before advertising. Which rental lengths are covered (reported as under 175 days): verify with the City Clerk.
Fees	$125 (to 2,000 sq ft), $200, $250, or $300 (4,001+ sq ft), plus a $50 tourism assessment and $25 parking fee.

Items marked "Verify with the city" could not be confirmed from an official source; call the office listed before relying on them.

Sources

Free tools

Free "Is my rental legal?" checklist · Free tourist tax calculator

Rules can change

Cape May's rules, its tax rates and platform policies can change through a council vote, a new state law or a court ruling, often with little notice to hosts. We re-check this page monthly; subscribers get notified. Stay Compliant for $4.99/mo.

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Not legal or tax advice. Last verified Oct 24, 2026. Rules and rates change: confirm with the official sources linked before you rent or file.