New Jersey's current sales tax rate
New Jersey charges a 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 the way some states structure their tax.
The 6.625% is a combined state rate. New Jersey does not allow municipalities to impose their own sales tax on top of it, which means the rate you pay in Newark is identical to the rate in Cape May or any other city in the state.
Key Takeaways
- New Jersey's sales tax is 6.625% and applies the same way across all cities and counties in the state.
- Groceries, prescription medications, and certain medical devices are exempt from sales tax in New Jersey.
- Clothing and footwear under $110 per item are not taxed, but items over that threshold are taxed in full.
- Services like haircuts, repairs, and labor are generally not subject to sales tax unless they are bundled with taxable goods.
- Online purchases from out-of-state retailers are subject to New Jersey sales tax if the seller has a physical presence or meets economic thresholds in the state.
What is and is not taxed in New Jersey
Food bought at a grocery store is not taxed. This includes bread, milk, produce, frozen meals, and canned goods. However, prepared food — items from a deli counter, restaurant, or food truck — is taxed at the full 6.625% rate.
Prescription medications and certain medical devices are exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescription drugs filled by a pharmacist are not. Diabetic testing supplies, hearing aids, and prosthetic devices also avoid the tax.
Clothing and footwear under $110 per item are not taxed. A pair of shoes priced at $95 has no sales tax. A jacket at $120 is taxed on the full amount. If you buy multiple items in one transaction, each item is evaluated separately at its individual price.
Services are generally not taxed unless they are part of a sale of goods. A haircut is not taxed. Labor to repair your car is not taxed. But if a salon sells you a bottle of shampoo along with the haircut, the shampoo is taxed.
When you pay sales tax on online and mail orders
If you order from an out-of-state retailer and have it shipped to New Jersey, you owe sales tax if the seller has a physical presence in the state — a warehouse, office, or store location. You also owe it if the seller meets New Jersey's economic nexus threshold, which means they sold more than a certain dollar amount into the state in the previous year. That threshold changes annually but is typically in the range of $100,000 in sales.
Many large online retailers already collect New Jersey sales tax at checkout because they meet one of these tests. Smaller sellers may not. If tax was not collected, New Jersey technically requires you to pay it yourself through a "use tax" return, though this is rarely enforced for individual purchases.
Purchases from retailers physically located in New Jersey are always taxed, regardless of whether you pick them up in person or have them shipped.
Sales tax on specific categories
Gasoline is taxed at 6.625%, the same rate as other goods. New Jersey does not have a separate fuel tax added at the pump the way some states do.
Alcohol — beer, wine, and spirits — is taxed at the standard 6.625% rate. There is no additional excise tax at the point of sale, though the state does regulate alcohol pricing and availability.
Cigarettes and vaping products are taxed at 6.625%, but the state also imposes an excise tax on these items. The excise tax is separate from sales tax and is built into the price you see on the shelf.
Digital goods — ebooks, music downloads, software, and streaming subscriptions — are taxed at 6.625%. This applies whether you buy them from a New Jersey retailer or an out-of-state one that meets the nexus test.
How sales tax is calculated and displayed
Retailers in New Jersey are required to show the sales tax separately on your receipt. The price on the shelf or online is the pre-tax price. The 6.625% is calculated on that amount and added at checkout. A $100 item costs $106.625, which rounds to $106.63.
When you see a price advertised, it does not include sales tax unless the retailer explicitly states otherwise. This is different from some countries where the displayed price is the final price you pay.
Resale certificates and business purchases
If you are a business buying goods to resell, you can provide a resale certificate to avoid paying sales tax on your purchase. The tax is then collected when the end customer buys the item from you. You must register with the New Jersey Division of Taxation to obtain a resale certificate.
If you are buying items for business use — supplies, equipment, or materials you will not resell — you pay sales tax like any other customer. The resale exemption applies only to goods you intend to sell to someone else.
Frequently Asked Questions
Do I pay sales tax on used items?
Used items sold by a business are taxed at 6.625%. Used items sold privately between individuals are not subject to sales tax. If you buy a used car from a dealer, you pay tax. If you buy it from a private seller, you do not.
Is sales tax charged on shipping and delivery fees?
Shipping and delivery charges are generally not taxed in New Jersey. However, if the retailer bundles shipping into the item price or does not separate it on the invoice, the entire amount may be subject to tax. Check your receipt to see whether shipping was listed separately.
What about sales tax on gift cards?
Buying a gift card is not taxed. You pay tax only when you use the card to purchase taxable items. If you buy a $50 gift card and use it to buy a $50 item that is normally taxed, you pay the 6.625% tax on that item at the time of purchase.
Do I owe sales tax if I buy something out of state and bring it home?
If you buy an item in another state and bring it to New Jersey, you do not owe New Jersey sales tax on it. However, if you order it from out of state and have it shipped to New Jersey, the rules about nexus and economic thresholds apply — you may owe tax depending on the seller's connection to the state.
Is there a sales tax holiday in New Jersey?
New Jersey does not have an annual sales tax holiday. Some states offer a week or weekend each year when clothing or school supplies are tax-free, but New Jersey does not run such a program. The clothing exemption for items under $110 is permanent year-round.