Atlantic City Short-Term Rental Regulations

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Short-Term Rental License (issued together with a Seasonal Certificate of Occupancy) from the Atlantic City Landlord Registration Code Enforcement Division, Department of Licensing and Inspections

This permit type does not require primary residence.

Application Process

Owner (not tenant) submits an annual application with owner/agent/responsible-party contact info, driver's license copy, and (for condos) association approval letter, plus the $150 fee, to the Landlord Registration Code Enforcement Division; the dwelling then undergoes a fire-safety/IPMC inspection (pass/fail, no conditional licenses) to set the occupancy load; once passed, the occupancy-load-based annual license fee is paid and the license/occupancy permit is issued within 10 business days; a denial may be appealed within 10 business days.

Tax Obligations

Combined rate: 13.625% combined percentage-based tax (3.625% NJ Sales Tax + 9% Atlantic City Luxury Tax + 1% State Occupancy Fee) for stays under 90 days, plus a separate flat $1-per-night Atlantic City Promotion Fee of gross rental income.

Collection: For bookings made through a listing agent or online platform (e.g., Airbnb, Vrbo), the platform/agent collects and remits the short-term rental occupancy tax and promotion fee; for direct bookings, the individual owner/operator collects the taxes and submits the City's Hotel Occupancy Tax Collection Report

Filing: Owners not taxed through a third-party platform file a quarterly Hotel Occupancy Tax Collection Report with the City; at the state level, Sales Tax (Form ST-50) is filed quarterly and the State Occupancy Fee (Form HM-100) is filed monthly

Rental Limits

Atlantic City does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

No fixed numeric cap in the ordinance; the maximum occupancy ("occupancy load") for each licensed unit is set individually by City Code Enforcement Inspectors during the mandatory pre-license inspection, per the International Property Maintenance Code (IPMC), and the license fee tier depends on that occupancy load (1-6, 7-11, or 12+ occupants)

Zoning & Restrictions

Short-term rentals are permitted in any dwelling citywide (a prior geographic ban in the Chelsea District was repealed by the current ordinance), except they are prohibited in boardinghouses/rooming houses, dormitories, foster homes, adult family care homes, assisted living facilities, community residences for developmentally disabled persons, community shelters for victims of domestic violence, and nursing homes; condo/co-op units are also barred if the association's governing documents expressly prohibit short-term rental

Insurance & Safety

Insurance

Operators must maintain at least $300,000 minimum general liability in insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

• Annual fire-safety and IPMC compliance inspection required before licensing (no conditional/partial licenses; a failed inspection requires reinspection at $50/inspection); all short-term rental properties must have operational exterior video recording devices covering all entrances, with footage retained at least 60 days and access given to law enforcement/City officials on lawful request; renters must be notified in writing of the cameras

Penalties for Non-Compliance

Fines of up to $2,000 per violation, at the Municipal Judge's discretion; operating or advertising an STR without a valid license may be treated as a continuing violation subjecting the owner to up to $2,000 per violation per day

Compliance Checklist

Follow these steps to legally operate a short-term rental in Atlantic City:

1. Meet safety requirements. Annual fire-safety and IPMC compliance inspection required before licensing (no conditional/partial licenses; a failed inspection requires reinspection at $50/inspection); all short-term rental properties must have operational exterior video recording devices covering all entrances, with footage retained at least 60 days and access given to law enforcement/City officials on lawful request; renters must be notified in writing of the cameras.
2. Obtain liability insurance. $300,000 minimum general liability minimum.
3. Apply for Short-Term Rental License (issued together with a Seasonal Certificate of Occupancy) from the Atlantic City Landlord Registration Code Enforcement Division, Department of Licensing and Inspections. Submit application + $150 nonrefundable annual application fee, plus an annual license fee based on occupancy load: $1,000 (occupancy load 1-6), $1,500 (7-11), or $1,800 (12+) fee.
4. Register for tax accounts. Set up lodging tax accounts with NJ Division of Taxation (Sales Tax, State Occupancy Fee, Atlantic City Luxury Tax, Atlantic City Promotion Fee collection/remittance); City of Atlantic City Division of Licensing and Inspections (Hotel Occupancy Tax Collection Report for units not taxed via a third-party platform).
5. Collect and remit taxes. 13.625% combined percentage-based tax (3.625% NJ Sales Tax + 9% Atlantic City Luxury Tax + 1% State Occupancy Fee) for stays under 90 days, plus a separate flat $1-per-night Atlantic City Promotion Fee on all bookings.
6. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Atlantic City?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Atlantic City requires a short-term rental permit.

Does Atlantic City require a short-term rental to be your primary residence?

No. Atlantic City allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Atlantic City?

Atlantic City does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Atlantic City?

Short-term rental stays in Atlantic City are subject to a combined 13.625% in lodging taxes. This combines 3.625% New Jersey Sales Tax (Atlantic City Tourism District rate) + 9% Atlantic City Luxury Tax + 1% New Jersey State Occupancy Fee (reduced Atlantic City rate) + $1 per occupied room per day (non-casino facilities) Atlantic City Promotion Fee. The host is responsible for collecting and remitting them.