New Jersey's current sales tax rate

New Jersey has a statewide sales tax rate of 6.625 percent. This rate applies to most retail purchases of tangible goods — items you can touch and take home. The rate is uniform across all counties and municipalities; there are no local add-ons or variations based on where you shop within the state.

The 6.625 percent figure has been in place since 2006. It replaced the previous rate of 6 percent after the state legislature voted to increase it. Unlike some states that adjust their sales tax annually or by region, New Jersey maintains this single statewide rate for all taxable transactions.

Key Takeaways

  • New Jersey's sales tax is 6.625 percent on all taxable purchases, with no county or local variations.
  • Groceries, prescription medications, and most clothing under $110 per item are exempt from sales tax.
  • Services — haircuts, repairs, labor — are generally not subject to sales tax unless they are bundled with a taxable product.
  • The tax is collected by the retailer at the point of sale and sent to the New Jersey Division of Taxation.

What is and is not taxed in New Jersey

Food purchased for home consumption is not taxed in New Jersey. This includes bread, milk, vegetables, meat, frozen dinners, and beverages. However, prepared food — items sold hot or ready-to-eat from a restaurant, deli counter, or food cart — is taxed at the full 6.625 percent rate.

Clothing and footwear under $110 per item are exempt from sales tax. If a single piece of clothing costs $110 or more, the entire purchase is taxed. Accessories like belts, hats, and scarves are taxed regardless of price. Clothing for animals is also taxed.

Prescription medications are exempt. Over-the-counter drugs, vitamins, and health supplements are taxed. Medical equipment like wheelchairs, crutches, and hearing aids may be exempt depending on the specific item; ask the retailer or check with the New Jersey Division of Taxation if you are unsure.

Services — labor for repairs, haircuts, plumbing, electrical work — are generally not subject to sales tax. The exception is when a service is bundled with a taxable product. For example, if a salon sells you shampoo and charges for applying it, the shampoo is taxed but the labor is not.

How sales tax is calculated at checkout

The retailer calculates sales tax on the pre-tax subtotal of your purchase. If you buy items totaling $50, the tax is $50 × 0.06625 = $3.31, making your total $53.31. Tax is rounded to the nearest cent; if the calculation produces a fraction of a cent, it rounds up or down depending on standard rounding rules.

The retailer is responsible for collecting the tax from you and remitting it to the New Jersey Division of Taxation. You do not file sales tax yourself as a consumer — it is handled at the point of sale. If you believe you were charged tax on an exempt item, contact the retailer for a refund.

Tax-exempt purchases and who qualifies

Certain organizations and individuals can make tax-exempt purchases in New Jersey. Nonprofits, schools, hospitals, and government agencies can buy goods without paying sales tax if they provide the retailer with a valid resale certificate or tax-exempt certificate. These organizations must register with the New Jersey Division of Taxation to receive a certificate number.

Individual consumers do not receive blanket tax-exempt status. You pay sales tax on all taxable purchases regardless of income or circumstance. The only exception is the clothing and food exemptions already described, which apply to everyone equally.

Online purchases and sales tax

Online retailers are required to collect and remit New Jersey sales tax on purchases shipped to addresses in New Jersey. This applies whether the retailer is based in New Jersey or out of state. You pay the same 6.625 percent rate on online orders as you would in a physical store.

Some older online retailers may not yet be collecting New Jersey sales tax. If you notice a purchase was not taxed, the retailer may not have registered with the state. You are not responsible for paying tax yourself in this situation — the obligation falls on the seller. However, the retailer may eventually be audited and required to collect retroactively.

Special sales tax situations

Motor vehicles are subject to sales tax in New Jersey, but the rate and calculation differ from standard retail tax. Vehicle sales tax is handled through the Motor Vehicle Commission and is based on the purchase price. The rate is 6.625 percent, but the process involves title and registration rather than a simple checkout transaction.

Gasoline and diesel fuel are subject to New Jersey sales tax plus a separate fuel tax. The combined rate is higher than the standard 6.625 percent. Utilities — electricity, natural gas, water — are not subject to sales tax in New Jersey.

Rental of tangible goods — cars, equipment, tools — is generally taxed as if you were purchasing the item. The rental company collects tax on the rental fee. Some short-term rentals have different rules; check with the rental company if you are unsure.

Frequently Asked Questions

Do I pay sales tax on items I buy online from out-of-state retailers?

Yes. If the retailer ships to New Jersey, they must collect 6.625 percent sales tax on your order. This applies to most major online retailers. Older or very small sellers may not yet be collecting it, but the legal requirement is the same regardless.

Are restaurant meals and takeout taxed differently?

No. Both dine-in meals and takeout are taxed at 6.625 percent. The tax applies to prepared food regardless of whether you eat it at the restaurant or take it home. Groceries you buy to cook at home are not taxed.

What happens if a clothing item costs exactly $110?

Items priced at $110 or more are taxed. A $110 item is at the threshold and is therefore subject to the full 6.625 percent sales tax. Only items under $110 are exempt.

Can I get a refund if I was charged sales tax on an exempt item?

Yes. Contact the retailer with your receipt and explain that the item should have been exempt. Most retailers will issue a refund for the tax charged. Keep your receipt as proof of purchase.

Is there a sales tax on services like haircuts or car repairs?

No. Labor and services are not taxed in New Jersey. However, if you buy a product as part of the service — such as hair dye at a salon or parts at a repair shop — the product itself is taxed.