New Jersey's statewide sales tax rate is 6.625 percent
New Jersey has a single statewide sales tax rate of 6.625 percent that applies to most taxable purchases. This rate is made up of a 6 percent state tax plus a 0.625 percent tax that funds the state's Earned Income Tax Credit program. Unlike many states, New Jersey does not allow counties or municipalities to add their own local sales tax on top of the state rate.
The 6.625 percent rate applies to tangible goods — items you can touch and take home — when you buy them at a store, online, or through mail order. It also applies to certain services. However, New Jersey exempts many common purchases from sales tax entirely, which means you pay nothing extra on those items.
Key Takeaways
- New Jersey's sales tax rate is 6.625 percent statewide, with no additional county or local taxes added on top.
- Groceries, prescription medications, and most clothing under $110 per item are exempt from sales tax in New Jersey.
- Restaurant meals, prepared foods, and non-prescription drugs are subject to the full 6.625 percent sales tax.
- The sales tax rate has remained at 6.625 percent since 2006 and applies uniformly across all 21 counties.
What items are exempt from New Jersey sales tax
New Jersey exempts groceries and food items intended for home consumption from sales tax. This includes bread, milk, vegetables, meat, and other items you buy to cook at home. However, prepared foods — items sold hot or ready to eat — are taxed. This means a sandwich from a deli counter is taxed, but a loaf of bread from the shelf is not.
Prescription medications are also exempt from sales tax in New Jersey. You do not pay sales tax when you fill a prescription at a pharmacy. Over-the-counter medications and health products like vitamins, pain relievers, and cold medicine are subject to the full 6.625 percent tax.
Clothing and footwear under $110 per item are exempt from sales tax. If a shirt costs $85, you pay no sales tax. If it costs $115, you pay sales tax on the entire amount. This threshold applies per item, not per purchase, so you could buy multiple items under $110 each and pay no tax on any of them.
Items that are always taxed in New Jersey
Restaurant meals and prepared foods are taxed at 6.625 percent, whether you eat in the restaurant or take the food home. This includes pizza, sandwiches, coffee, and any food sold ready to eat. Alcoholic beverages are also taxed at the standard rate when purchased at a restaurant or bar.
Gasoline, diesel fuel, and other motor fuels are subject to sales tax plus an additional motor fuels tax. The motor fuels tax varies but is separate from the 6.625 percent sales tax rate. Cigarettes and tobacco products are taxed at the sales tax rate plus an additional excise tax specific to tobacco.
Services like haircuts, dry cleaning, car repairs, and plumbing are taxed at 6.625 percent. Rental of tangible goods — such as renting a car, equipment, or tools — is also taxable. Digital products and subscriptions, including streaming services and software, are subject to sales tax in New Jersey.
How sales tax is calculated on your purchase
When you buy a taxable item in New Jersey, the store calculates the sales tax by multiplying the purchase price by 0.06625. If you buy an item for $50, the sales tax is $3.31, making your total $53.31. Most stores round the tax to the nearest cent, so the actual amount you pay may be slightly different depending on how the store's system rounds.
When you buy multiple items, the store typically calculates tax on each taxable item separately, then adds those taxes together. If you buy a $40 shirt (taxable), a $20 loaf of bread (exempt), and a $15 coffee (taxable), you pay tax only on the shirt and coffee: $2.65 plus $0.99, for a total tax of $3.64.
Online and mail order purchases from New Jersey retailers
If you order from a New Jersey retailer — whether online, by phone, or by mail — you pay New Jersey sales tax on taxable items. The retailer collects the tax at the time of purchase and sends it to the state.
If you order from a retailer outside New Jersey, the tax rules depend on whether that retailer has a physical presence or significant sales activity in New Jersey. Many large national retailers now collect New Jersey sales tax on orders shipped to New Jersey addresses, even if the retailer is based elsewhere. Smaller retailers may not collect the tax, though New Jersey residents are technically responsible for paying a "use tax" on untaxed purchases — in practice, this is rarely enforced for individual purchases.
Sales tax on specific product categories
| Product Category | Sales Tax Status |
|---|---|
| Groceries (unprepared) | Exempt |
| Restaurant meals and prepared foods | Taxed at 6.625% |
| Prescription medications | Exempt |
| Over-the-counter medications | Taxed at 6.625% |
| Clothing under $110 per item | Exempt |
| Clothing $110 and over per item | Taxed at 6.625% |
| Gasoline and diesel fuel | Taxed at 6.625% plus motor fuels tax |
| Cigarettes and tobacco | Taxed at 6.625% plus excise tax |
| Haircuts and personal services | Taxed at 6.625% |
| Streaming services and digital products | Taxed at 6.625% |
Frequently Asked Questions
Does New Jersey have different sales tax rates in different counties?
No. New Jersey has a single statewide sales tax rate of 6.625 percent that applies uniformly across all 21 counties. There are no local or county sales taxes added on top of the state rate, and no county has a different rate than any other.
Do I pay sales tax on clothing at thrift stores or secondhand shops?
Yes, if the item is under $110 per item, it is exempt from sales tax at any store — including thrift stores, consignment shops, and secondhand retailers. The exemption applies to the item itself, not where you buy it. If a used coat costs $95, you pay no sales tax regardless of where you purchase it.
Is there sales tax on groceries if I order them for delivery?
Groceries are exempt from sales tax whether you pick them up in person or order them for delivery. The exemption applies to unprepared food items intended for home consumption. However, if you order prepared foods — like a rotisserie chicken or prepared salad from a grocery store deli — those items are taxed.
What is the difference between sales tax and use tax in New Jersey?
Sales tax is collected by the retailer when you buy something. Use tax is a tax on items you buy outside New Jersey and bring into the state, or items you order from out-of-state retailers that do not collect New Jersey sales tax. Technically, New Jersey residents owe use tax on these purchases, but it is rarely enforced for individual consumers.
Has New Jersey's sales tax rate changed recently?
The current rate of 6.625 percent has been in place since 2006. The rate consists of a 6 percent state tax plus 0.625 percent for the Earned Income Tax Credit program. There have been no changes to the overall rate in recent years, though individual tax components have been adjusted in the past.