New Jersey's current sales tax rate
New Jersey charges 6.625% sales tax on most retail purchases. This rate has been in place since 2006 and applies statewide — there are no local add-ons or county variations like some states have.
The 6.625% breaks down as 6% state tax plus 0.625% in dedicated funds. When you buy something at a store, that combined rate is what gets added to your receipt.
Key Takeaways
- New Jersey's sales tax rate is 6.625% on most items, with no local variations across the state.
- Groceries, prescription medications, and medical equipment are exempt from sales tax in New Jersey.
- Clothing and footwear under $110 per item are tax-free, but items at or above that threshold are taxed.
- Services like haircuts, repairs, and labor are generally not subject to sales tax unless they involve tangible goods.
- Online purchases from out-of-state sellers may or may not have tax added depending on whether the seller has a physical presence in New Jersey.
What is and isn't taxed in New Jersey
New Jersey exempts certain categories entirely. Groceries — items you buy at a supermarket to cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed.
Prescription medications are tax-free when filled by a pharmacist with a valid prescription. Over-the-counter medicines like aspirin or cold medicine are taxed. Medical devices prescribed by a doctor — such as diabetic test strips, hearing aids, or mobility aids — are also exempt.
Clothing and footwear under $110 per item are tax-free. A pair of shoes priced at $95 has no tax. A pair priced at $110 or more is taxed at 6.625%. This threshold applies to each individual item, not your total purchase.
Services and labor charges
Most services are not subject to sales tax in New Jersey. A haircut, car repair, plumbing work, or house cleaning does not have sales tax added to the labor charge itself.
However, if a service includes selling you a tangible product, the product portion may be taxed. A plumber who charges you $200 for labor and $50 for a new pipe fitting will not tax the labor, but the pipe fitting itself may be taxed depending on what it is. Always ask your service provider to itemize labor and materials if you want to know what portion is taxed.
Online and out-of-state purchases
Whether you pay sales tax on an online purchase depends on whether the seller has a physical presence — a warehouse, office, or store — in New Jersey. If they do, they must collect 6.625% tax. If they do not, they typically do not collect it at the checkout.
This does not mean the purchase is tax-free. New Jersey residents are technically responsible for paying "use tax" on untaxed out-of-state purchases, but this is rarely enforced for individual consumers. Large retailers like Amazon now collect tax in most states, including New Jersey, regardless of where they ship from.
Specific items and categories
Gasoline is taxed at the pump as part of the 6.625% rate. Alcohol — beer, wine, and spirits — is taxed at the point of sale. Cigarettes and vaping products are taxed, plus they carry an additional state excise tax on top of the sales tax.
Newspapers and magazines are not taxed. Books are not taxed. Digital downloads like e-books, music, or software are generally not taxed in New Jersey, though this varies by product type and how it is classified.
Lottery tickets are not subject to sales tax. Admission to movies, concerts, or sporting events is not taxed. Memberships to gyms or clubs are not taxed.
How sales tax appears on your receipt
When you check out at a store, the cashier or register will show you the subtotal, then add the 6.625% tax, then show you the total amount due. On an online receipt, the tax line is usually labeled "Sales Tax" or "NJ Sales Tax" and shows the dollar amount, not just the percentage.
If you buy multiple items, tax is calculated on each taxable item individually, then added together. A $100 item and a $50 item that are both taxable will each have 6.625% applied, not 6.625% on the combined $150.
Tax-exempt purchases and resale
Businesses that resell items — retailers, wholesalers, manufacturers — can buy inventory without paying sales tax by providing a resale certificate to their supplier. This certificate proves they are buying for resale, not personal use. The tax is then collected when the end consumer buys the item.
Nonprofits and government agencies may also be exempt from sales tax on certain purchases, but they must provide documentation to the seller. A nonprofit cannot simply refuse to pay tax; they must have an exemption certificate on file.
Frequently Asked Questions
Do I pay sales tax on clothing if it costs more than $110?
Yes. The $110 threshold in New Jersey applies per item. A $120 shirt is taxed at 6.625%. A $95 pair of pants is not. If you buy both, only the shirt is taxed. The threshold does not reset or combine across multiple items.
Is sales tax added to grocery store items like soda and candy?
Soda and candy are taxed because they are not considered groceries — they are prepared or processed foods meant for immediate consumption. Milk, bread, and vegetables are not taxed. When in doubt, ask the cashier or check your receipt to see which items were taxed.
Do I owe tax on something I bought online from a company with no store in New Jersey?
Technically, New Jersey residents owe use tax on untaxed purchases, but it is not enforced for individual consumers. Most large online retailers now collect tax anyway. If you are unsure whether tax was charged, check your order confirmation email.
Are haircuts and salon services taxed?
No. Labor for haircuts, coloring, and styling is not taxed. If the salon sells you a product — shampoo, conditioner, or styling products — that product may be taxed, but the service itself is not.
What happens if a store charges me sales tax on something that should be exempt?
Ask the cashier or manager to review the item. Mistakes happen, especially with clothing near the $110 threshold or with items that look similar to taxable products. Keep your receipt and ask for a correction before you leave the store.