Section 01 of 05
Which Groceries Are Exempt from Sales Tax?
Most basic, unprepared grocery items are not subject to New Jersey’s 6.625% sales tax. This includes:
Fresh fruits and vegetables
Meat, poultry, and seafood
Dairy products like milk, cheese, and butter
Bread, rice, and pasta
Unprepared frozen foods
Since these are considered essential staples, the state does not impose a tax, helping consumers manage their grocery budgets more effectively.
Section 02 of 05
Are Groceries Taxed in New Jersey
Section 03 of 05
Which Grocery Items Are Taxable?
Although many groceries are tax-exempt, there are exceptions, including:
Prepared Meals – Any food sold hot, ready-to-eat, or requiring minimal preparation, such as deli sandwiches or rotisserie chicken, is subject to sales tax.
Alcoholic Beverages – Beer, wine, and spirits are always taxed.
Candy and Soft Drinks – Unlike other grocery items, sugary snacks and beverages, including soda, are taxable in New Jersey.
Food from Restaurants and Takeout – Any meal purchased from a restaurant, fast-food chain, or cafe is considered prepared food and is therefore subject to sales tax.
Who is writing this
Guidance from a firm that files these every season
Wasserman Accounting has advised New Jersey individuals and businesses since 1993. The positions in this article are the ones we take on real returns.
Since 1993
30+ years in practice
3,054
Clients served
30,426
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Section 04 of 05
Why Does New Jersey Have These Tax Rules?
New Jersey’s grocery tax policy is designed to ease the financial burden on consumers when purchasing essential food items. However, prepared foods and specialty items are taxed because they are seen as convenience or luxury purchases rather than necessities.
Section 05 of 05
Final Thoughts
If you’re buying groceries in New Jersey, remember that most unprepared foods are tax-free, while prepared meals, candy, soft drinks, and alcohol are taxable. Understanding these distinctions can help you avoid unexpected costs at checkout and make better shopping decisions.
