Credit card processing and merchant services in Elizabeth, NJ
Room rentals in Elizabeth carry the City's own occupancy tax and a 1% State Occupancy Fee instead of the usual 5%. The Division of Taxation's 2019 example totals 13.625% with sales tax.
Elizabeth taxes its own hotel rooms, and New Jersey's occupancy rules treat the city differently because of it. The Division of Taxation lists Elizabeth with Newark, Jersey City, Atlantic City and the three Wildwoods as municipalities that can't adopt the state's Municipal Occupancy Tax, because they already impose local taxes or fees on room occupancies. The State Occupancy Fee is different here too: 1% in Elizabeth, where most of New Jersey pays 5%.
The City's tax reaches short-term rentals as well. A December 2019 Division of Taxation bulletin says Elizabeth amended its ordinance, effective October 2, 2018, to impose its hotel occupancy tax on transient accommodations. The bulletin's Elizabeth example totals 13.625%: 6.625% sales tax, a 6% City occupancy tax and the 1% state fee. On a $200 night, that's $27.25. The bulletin is several years old, so confirm the City's current rate before you set up a booking system.
The card rules are New Jersey's. A surcharge on a credit card is limited to what that payment actually costs you to process, guests have to see it before they're charged, and debit cards can't carry one under network rules. Walk-in retail customers also have the right to pay cash. The New Jersey page cites each statute.
The Census Bureau estimated 141,675 Elizabeth residents in July 2025, 3.2% above its 2020 base. For phone bookings and deposits, our virtual terminal can take a keyed card or send an invoice with a payment link, and our hotel card processing guide covers holds and no-show charges. If you're weighing a surcharge, a free statement review works out the actual processing cost that caps it in New Jersey.
Rules that matter in Elizabeth
Elizabeth's hotel occupancy tax and the 1% state fee
The Division of Taxation lists Elizabeth among the municipalities that can't enact the Municipal Occupancy Tax, because they already impose local taxes or fees on room occupancies. Elizabeth's State Occupancy Fee is 1% rather than 5%.
A Division of Taxation bulletin from December 2019 says Elizabeth amended its ordinance, effective October 2, 2018, to impose its hotel occupancy tax on transient accommodations, and it shows the total on an Elizabeth rental as 13.625%: 6.625% sales tax, 6% Elizabeth occupancy tax and 1% State Occupancy Fee. Confirm the City's current rate before you rely on it.
Sources: New Jersey Division of Taxation, Hotel and motel occupancy fee information: Municipal Occupancy Tax; New Jersey Division of Taxation, Hotel/motel and State Occupancy Fee information; New Jersey Division of Taxation, Taxes imposed on the rental of transient accommodations (technical bulletin, December 2019, PDF)
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Common questions
What is the hotel tax in Elizabeth, NJ?
In the Division of Taxation's December 2019 example, 13.625% in all: 6.625% sales tax, the City's 6% occupancy tax and a 1% State Occupancy Fee. The state fee is 1% in Elizabeth rather than the 5% charged in most of New Jersey. Check the City's current rate before you price rooms.
Do short-term rentals in Elizabeth pay the city occupancy tax?
Yes. The Division of Taxation says Elizabeth amended its ordinance, effective October 2, 2018, to impose its hotel occupancy tax on transient accommodations. If you rent rooms or a unit by the night, plan for the 13.625% total the bulletin shows for an Elizabeth rental and confirm the current figure with the City.
Why doesn't Elizabeth have a Municipal Occupancy Tax?
New Jersey's Division of Taxation lists Elizabeth, Newark, Jersey City, Atlantic City, Wildwood, North Wildwood and Wildwood Crest as municipalities that can't enact one, because they already impose local taxes or fees on room occupancies. Elizabeth collects its own hotel occupancy tax instead.
Can an Elizabeth hotel add a credit card surcharge to the room bill?
Only up to what processing that card actually costs you, under New Jersey's 2023 law, and the guest has to be told before any charge is incurred, which for an online booking means before checkout. The networks' own caps (3% for Visa, 4% for Mastercard) still apply, and debit and prepaid cards can't carry the fee.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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