New Jersey's current sales tax rate

New Jersey's statewide sales tax rate is 6.625%. This is the base rate applied to most taxable purchases across the state. Some counties add a local tax on top of the state rate, which means your total sales tax can be higher depending on where you shop.

The 6.625% rate has been in place since 2006. It applies to the sale price of an item before any discounts are applied. If you buy something for $100, you pay $6.625 in state sales tax on that $100 — not on a reduced price if the store later marks it down.

Key Takeaways

  • New Jersey's base sales tax is 6.625%, but some counties add a local tax that raises the total to 7% or higher.
  • Groceries, prescription medications, and most clothing under $110 per item are not subject to sales tax in New Jersey.
  • The tax applies to the full purchase price before any store discounts, but not to items that are exempt by state law.
  • Your actual sales tax rate depends on which county you make the purchase in, so the same item costs different tax amounts in different parts of the state.

County-level sales tax additions

Several New Jersey counties add their own local sales tax on top of the 6.625% state rate. These local rates range from 0.125% to 0.5%, bringing the total sales tax in those counties to between 6.75% and 7.125%.

The counties with added local sales tax are Bergen, Hudson, Passaic, and Sussex. If you shop in one of these counties, your receipt will show the combined state and local rate. Counties without a local addition charge only the 6.625% state rate. You can check your county's rate by looking at a recent receipt or contacting your county tax assessor's office.

What is not taxed in New Jersey

New Jersey exempts several categories of items from sales tax. Groceries — food you buy to prepare at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed, but raw ingredients are not.

Prescription medications are also exempt from sales tax. Over-the-counter medicines like aspirin or cold medicine are taxed, but anything you need a prescription to buy is not. Clothing and footwear under $110 per item are exempt. A $100 shirt is not taxed; a $150 shirt is taxed on the full amount. This applies to each individual item, not to your total purchase.

Medical equipment prescribed by a doctor — such as wheelchairs, hearing aids, or diabetic supplies — is not taxed. Newspapers and magazines are also exempt. Diapers and feminine hygiene products became exempt from sales tax in New Jersey in 2022.

Items that are always taxed

Clothing accessories — belts, hats, scarves, gloves — are taxed regardless of price. Shoes are clothing and follow the $110 rule, but a belt does not. Jewelry is taxed. Cosmetics and toiletries like shampoo, toothpaste, and deodorant are taxed.

Restaurant meals, takeout food, and prepared foods from grocery store deli counters are all taxed. Alcohol and tobacco products are taxed at the sales tax rate, plus they have their own excise taxes on top. Gasoline is taxed at the pump. Haircuts and personal services are taxed. Hotel rooms are taxed.

How sales tax appears on your receipt

On a store receipt, the sales tax is listed as a separate line item below the subtotal. The receipt shows the subtotal (the price before tax), the tax amount, and the total you pay. If you buy multiple items, some taxed and some not, the receipt breaks this down — taxable items are added together, exempt items are added together, and tax is calculated only on the taxable subtotal.

If you buy a $100 shirt (taxed), a $50 pair of pants (taxed), and $30 in groceries (not taxed), your subtotal is $180. The tax is calculated on $150 (the clothing), which at 6.625% is $9.94. Your total is $189.94. The receipt should show this calculation clearly so you can verify it.

Sales tax on online and mail orders

New Jersey requires online retailers to collect and pay sales tax on orders shipped to New Jersey addresses, regardless of where the retailer is located. This rule applies to most major online sellers. If a retailer fails to collect tax at checkout, you may owe it when you file your state income tax return, though this is rarely enforced for individual purchases.

Mail orders and phone orders follow the same rule as online orders — tax is due on the purchase price. Some smaller retailers or out-of-state sellers may not collect New Jersey tax, but the legal obligation to pay it still exists. If you notice a retailer did not charge tax, you can report it to the New Jersey Division of Taxation.

Frequently Asked Questions

Do I pay sales tax on used items?

Sales tax applies to used items sold by retailers, but not to private sales between individuals. If you buy a used car from a dealership, you pay sales tax. If you buy one from a private seller, you do not pay sales tax to the seller, though you will pay registration fees to the state.

Is there sales tax on services?

Most services are not subject to sales tax in New Jersey. Haircuts, car repairs, plumbing, and legal fees are not taxed. However, some services bundled with products — like installation of carpet or appliances — may be taxed depending on how the invoice is written. Ask the service provider if you are unsure.

What if the receipt shows the wrong tax amount?

Check the receipt against the rate for your county. If your county has a local tax and the receipt shows only 6.625%, ask the cashier to correct it. If the math is wrong — for example, 6.625% of $100 should be $6.625, not $7 — bring it to the manager's attention. Most stores will refund the difference.

Do I pay sales tax when I return an item?

When you return a taxed item for a refund, the store refunds the tax along with the purchase price. If you exchange it for a different item of the same price, no new tax is charged. If you exchange it for a more expensive item, you pay tax only on the difference.

Are there any temporary sales tax holidays in New Jersey?

New Jersey does not have an annual sales tax holiday. Some states offer a back-to-school week or other periods with reduced tax, but New Jersey does not. The 6.625% rate applies year-round to taxable items.