What is the NJ sales tax rate?
New Jersey charges one statewide NJ sales tax rate on most taxable sales. The standard NJ sales tax rate is 6.625%.
Does the New Jersey sales tax rate change by city or county?
The New Jersey sales tax rate is generally the same everywhere in the state. Because New Jersey does not permit broad local add-on rates the as applied in the other states.
Are there any lowered rates in New Jersey?
It’s true, reduced rates exist. Yet, they are merely for specific programs and only when the sale satisfy the program rules.
Quick rate table for general situations
When can a lower NJ sales tax rate apply?
A lower rate generally applies merely when the seller is approved for the program and the customer purchases in person in accordance with the location and delivery rules.
What is the Urban Enterprise Zone (UEZ) rate?
Certified UEZ vendors might charge 3.3125% in terms of qualifying retail sales made in person at their zone business location.
For the reduced UEZ rate — the order and delivery should be linked with the vendor’s zone location.
What is the Salem County lowered sales tax rate?
Specific sellers in Salem County might charge the 50% lowered rate — on eligible in-person retail sales of tangible personal property.
The New Jersey Sales Tax Guide presents several categories that do not satisfy the eligibility criteria for that reduced rate. Such a reduce rate do not cover motor vehicles & alcoholic beverages, mail-order or internet sales and many other services.
What does NJ sales and use tax mean?
NJ sales and use tax is one system with two sides. It covers sales tax collected by the seller — and use tax paid when sales tax was not collected at purchase.
- Sales tax — in general — applies to retail sales of tangible personal property & specified digital products and particular services unless an exemption applies.
- Use tax — in general — is commonly owed when a taxable item is bought out of state (including online) and shipped into New Jersey for use — with no NJ tax collected at checkout
What is taxable in New Jersey and what is exempt?
Retail sales in general are taxable unless New Jersey law exempts the item or service.
What is commonly taxable?
General taxable categories are as below:
- Physical goods sold at retail
- Services performed on tangible personal property — like repairs — unless a specific exemption applies
NJ sales tax exemptions
The New Jersey Sales Tax Guide lists exemptions that cover most grocery-type food. Exemptions also cover most clothing and footwear as well as disposable paper products for household use in addition to prescription drugs and over-the-counter drugs.
In this aspect, practical examples people search for:
- Unprepared grocery items
- Everyday shirts & pants and shoes
- Prescriptions and many OTC medicines
How do you calculate sales tax in NJ?
In order to calculate sales tax in NJ, simply multiply the taxable selling price by the correct rate for that sale. Afterwards, round to the nearest cent as explained below.
- Confirm the item is taxable — not exempt
- Check whether a lowered program rate is allowed for this sale — UEZ or Salem County
- Multiply price × rate to get the tax
- Add tax to the selling price for the total
Example
What must a New Jersey business do before charging sales tax?
In the case of performing taxable sales in New Jersey, taxpayers should register first. The Division of Taxation indicates that every vendor doing business in New Jersey must register at least 15 days before engaging in business activity. Registration is by filing Form NJ-REG online.
Afterwards, filing is quarterly on Form ST-50 — in general — with monthly payments in some cases.
How do exemption certificates work for NJ sales and use tax?
New Jersey expects the purchaser to give the seller a properly completed exemption certificate. Without such certification, the seller should collect tax on a taxable sale.
Which certificates show up most often?
The Division of Taxation presents common Sales and Use Tax forms and certificates as below:
- ST-3 — Resale Certificate
- ST-4 — Exempt Use Certificate
What errors result in NJ sales tax issues?
It is possible to outline the typical scenarios as below:
- Treating a taxable sale as exempt — without the right paperwork
- Accepting a certificate that does not fit the purchase
- Missing use tax on out-of-state purchases shipped into New Jersey
What about electric vehicles and the NJ sales tax rate?
In terms of zero emission vehicles (ZEVs), the Division of Taxation shows a phase-in that ends with the regular 6.625% rate on sales on or after July 1, 2025.
Wasserman Accounting is ready for NJ sales tax questions
If you want a specialized approach to NJ sales and use tax registration & exemptions and filings, Wasserman Accounting is ready. Contact us today for the next action list for full compliance.
FAQs
Is NJ sales tax 7%?
No — New Jersey’s statewide sales tax is 6.625% — not 7%. On small totals, rounding to the nearest cent can make it look close.
How do I calculate NJ sales tax?
Multiply the taxable price by the rate that applies to your sale. Afterwards, simply round the result to the nearest cent.
How much is sales tax on a $30,000 car in NJ?
Having 6.625%, the sales tax is $1,987.50 on a $30,000 purchase price. MVC title and registration fees are separate.
Where is 3.5 sales tax in NJ?
There’s no flat 3.5% rate statewide. Taxpayers generally mean the 3.3125% — half-rate that applies only in line with specific lowered-rate programs.
What items are tax free in NJ?
General tax free examples cover:
- Most unprepared grocery food
- Most everyday clothing/footwear
- Prescription drugs — plus many over-the-counter medicines