This guide covers Atlantic City, New Jersey only. Neighboring markets have separate STR rules and are often confused with Atlantic City:
- Ventnor City: Directly south of Atlantic City, with its own short-term rental ordinance and permit process.
- Brigantine: North of Atlantic City, operates under a distinct municipal code for STRs.
- Margate City: Southwest of Atlantic City, enforces separate STR regulations and seasonal restrictions.
- Egg Harbor Township: Covers unincorporated areas west of Atlantic City, with different zoning and rental rules.
Legality Verdict
Short-term rentals are legal in Atlantic City with a required city license and seasonal certificate of occupancy. No cap on permits, but compliance with city and state rules is mandatory. The total tax stack is high.
- Legality Status: 4/5
- License Availability: 4/5
- Compliance Cost (% revenue): 2/5
- Regulatory Stability: 4/5
- Enforcement Climate: 4/5
TL;DR
Atlantic City defines STRs as rentals of 90 days or less. A city license and seasonal certificate of occupancy are required, with a $150+ permit fee and inspection. The total effective lodging tax is 16.625%. No occupancy cap, but strict parking and local contact rules apply. The biggest gotcha: the high tax stack and uncertainty about platform remittance of the 9% luxury tax.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Rental of a residential dwelling unit for 90 consecutive days or less (City of Atlantic City) |
| Registration Required | Yes, city license and seasonal certificate of occupancy (eCode360) |
| Permit Cost | $150 application fee (Avalara); plus $300–$1,200 based on occupancy load (Ordinance No. 9-H) |
| Annual Renewal | [needs verification — no primary source found] |
| Late/No Permit Penalty | Not separately codified — general city code enforcement penalties may apply (eCode360) |
| State Sales Tax | 6.625% (NJ Division of Taxation) |
| State Occupancy Fee | 1% (NJ Division of Taxation) |
| Atlantic City Luxury Tax | 9% (Chamber of Commerce) |
| County/District Tax | Not imposed (Chamber of Commerce) |
| Total Effective Lodging Tax | 16.625% (6.625% sales + 1% occupancy + 9% luxury) (Chamber of Commerce) |
| Permit Cap | Not codified — no cap in city code (eCode360) |
| Occupancy Cap | Not codified — determined by inspection (City of Atlantic City) |
| Minimum Night Stay | Not codified — no city rule (City of Atlantic City) |
| Density Limit | Not codified — no city rule (City of Atlantic City) |
| Primary Residence Rule | Not codified — no city rule (City of Atlantic City) |
| HOA/Condo Override | Not codified — private covenants may apply (City of Atlantic City) |
| Local Contact Requirement | Yes, 24/7 local contact required (eCode360) |
| Inspection Requirement | Yes, prior to license issuance (City of Atlantic City) |
| Parking Requirement | All vehicles must be parked in driveway; no blocking neighbors (City of Atlantic City) |
| Enforcement Penalties | Not separately codified — general city code applies (eCode360) |
| Transferability | Not codified — no city rule (eCode360) |
| Permitted Zones | [needs verification — no primary source found] |
| Prohibited Zones | [needs verification — no primary source found] |
| Primary Regulator | Department of Licensing and Inspections, 1301 Bacharach Blvd, (609) 347-5290 (City of Atlantic City) |
| Last Updated | June 11, 2026 |
Regulatory Impact Snapshot
Underwriters should model compliance costs at 16.6% of gross revenue, with median Atlantic City, NJ STRs earning $39,499 at an average daily rate of $270 and 27% occupancy. The binding constraint is the high combined tax stack (16.625%), which includes state sales tax, a reduced state occupancy fee, and the Atlantic City luxury tax. Permit and inspection fees are moderate, but the lack of clarity on platform remittance of the 9% luxury tax may expose hosts to additional filing obligations. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Atlantic City?
A short-term rental is the rental of a residential dwelling unit for periods of 90 consecutive days or less (City of Atlantic City).
Are short-term rentals legal in Atlantic City?
Yes, STRs are legal with a city license and seasonal certificate of occupancy (eCode360).
Does Atlantic City have a cap on the number of STR permits?
No, there is no codified cap on the number of STR permits (eCode360).
Licensing
What license is required to operate an STR in Atlantic City?
A short-term rental license and a seasonal certificate of occupancy are required (eCode360).
How much does the STR permit cost?
The application fee is $150, plus $300–$1,200 based on occupancy load (Avalara; Ordinance No. 9-H).
Is there an annual renewal fee?
[needs verification — no primary source found]
How long does it take to get licensed?
[needs verification — no primary source found]
Taxes
What taxes apply to STRs in Atlantic City?
STRs are subject to 6.625% state sales tax, 1% state occupancy fee, and 9% Atlantic City luxury tax (NJ Division of Taxation; Chamber of Commerce).
Does Airbnb collect all required taxes?
Airbnb collects the state sales tax and occupancy fee, but not the 9% luxury tax (Airbnb). [needs verification — no primary source found]
Do I need to register with the state for tax purposes?
Yes, unless all taxes are collected and remitted by a platform (NJ Division of Taxation).
Operations
Is there a minimum or maximum stay requirement?
No minimum stay is codified; maximum is 90 days per rental (City of Atlantic City).
Is a local contact required?
Yes, a 24/7 local contact is required (eCode360).
Are there parking requirements?
Yes, all vehicles must be parked in the driveway and not block neighbors (City of Atlantic City).
Are there occupancy limits?
No citywide cap; occupancy is set by inspection (City of Atlantic City).
Do HOA or condo rules override city STR rules?
The city does not codify HOA/condo overrides, but private covenants may apply (City of Atlantic City).
Enforcement
What are the penalties for operating without a permit?
Not separately codified; general city code enforcement penalties apply (eCode360).
How is STR compliance enforced?
Through registration, inspection, and complaint-driven enforcement (Checkmate Rentals).
Have there been recent changes to STR rules?
The most recent major change was in 2021, removing the occupancy cap and permit cap proposal (Press of Atlantic City).
Where can I find the latest STR regulations?
On the City of Atlantic City website and eCode360.
Permit Process
Atlantic City requires a short-term rental license and a seasonal certificate of occupancy before the first rental each year. The process includes an inspection for code compliance and determination of the approved occupancy load (eCode360). The application fee is $150, with additional fees based on occupancy load (Avalara; Ordinance No. 9-H).
Zoning
Short-term rentals are defined as rentals of 90 days or less. There is no codified density limit, minimum night stay, or primary residence requirement (City of Atlantic City). Permitted and prohibited zones require verification with the Planning and Development Department ([needs verification — no primary source found]).
Taxes and Remittance
STRs in Atlantic City are subject to a 6.625% state sales tax, 1% state occupancy fee, and 9% city luxury tax (NJ Division of Taxation; Chamber of Commerce). Airbnb collects state taxes but not the luxury tax (Airbnb). Hosts must register with the state unless all taxes are remitted by a platform (NJ Division of Taxation).
Enforcement and Recent Actions
Enforcement is handled by the Department of Licensing and Inspections. There is no codified fine schedule for STR violations; general city code applies (eCode360). The city focuses on registration and safety compliance (Checkmate Rentals).
Recent Changes and Pending Legislation
The most recent major change was in 2021, when Atlantic City removed the occupancy cap and dropped attempts to limit the number of STRs (Press of Atlantic City). No significant amendments or enforcement changes have occurred since.
Comparable Markets
- Ventnor City, NJ — Consider if you want a neighboring market with its own STR ordinance and permit process.
- Brigantine, NJ — Consider for a distinct municipal code and different enforcement climate.
- Margate City, NJ — Consider if you need seasonal restrictions and separate STR rules.
- Egg Harbor Township, NJ — Consider for unincorporated area rules and different zoning.
Sources
- City of Atlantic City Official Website: https://www.acnj.gov/pages/short-term-rentals
- Ordinance No. 9-H, City of Atlantic City: https://www.acnj.gov/_Content/pdf/ordinances/ORD-9-H-Amend-Chapter-194.pdf
- Chapter 194: Occupancy Permits – Atlantic City, NJ – eCode360: https://ecode360.com/15210484
- Article IV: Short-Term Rentals – Atlantic City, NJ – eCode360: https://ecode360.com/35500843
- City of Atlantic City – Ordinances: https://www.acnj.gov/ordinances
- NJ Division of Taxation – Individuals: https://www.nj.gov/treasury/taxation/transientaccommodationsfaq.shtml
- New Jersey Hotel/Motel and State Occupancy Fee Information: https://www.nj.gov/treasury/taxation/hotelfeeinfo.shtml
- State of NJ – Department of the Treasury – Division of Taxation – New Jersey Hotel and Motel Occupancy Fee Information – Municipal Occupancy Tax: https://www.nj.gov/treasury/taxation/hotelfee.shtml
- Rev. 3/23 Hotel Occupancies and New Jersey Taxes Tax Topic Bulletin S&U-13: https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su13.pdf
- Press of Atlantic City: https://pressofatlanticcity.com/news/local/atlantic-city-drops-attempts-to-limit-number-of-short-term-rentals/article_b42c9620-5a02-11ec-9144-2ffbfab2e605.html
- New Jersey League of Municipalities: https://www.njlm.org/m/newsflash/Home/Detail/3768
- Airbnb Help Center: https://www.airbnb.com/help/article/2317
- Chamber Of Commerce: https://www.chamberofcommerce.org/sales-tax/new-jersey/
- Avalara: https://www.avalara.com/mylodgetax/en/blog/2021/01/short-term-rentals-in-atlantic-city-face-new-regulations.html
- Checkmate Rentals Blog: https://www.checkmaterentals.com/blog/new-jersey-short-term-rental-laws
- Monaco CPA: https://www.monacocpa.cpa/airbnb-nj-tax-guide
- New Jersey State Authority: https://newjerseystateauthority.com/atlantic-city-new-jersey
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in City of Atlantic City, Atlantic County, New Jersey.
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