New Jersey's sales tax rate and what it covers

New Jersey's statewide sales tax is 6.625 percent. This is the base rate applied to most goods and services you buy in the state. Some counties add a local tax on top of this — usually between 0.5 and 1.25 percent — so your total rate depends on where you make the purchase. A few items are taxed at different rates or not taxed at all, which is where the rules get specific.

The 6.625 percent applies to clothing, electronics, furniture, groceries at the register (with exceptions noted below), and most services. When you see a price tag in a New Jersey store, that amount does not include sales tax — the tax is added at checkout. Online purchases from out-of-state sellers follow the same rule: if the seller has a physical presence in New Jersey or meets federal thresholds for remote sales, they must collect and send the tax to the state.

Key Takeaways

  • New Jersey's base sales tax is 6.625 percent, plus a local county tax that ranges from 0.5 to 1.25 percent depending on where you shop.
  • Clothing and footwear under $110 per item are not taxed, but items over that threshold are taxed in full.
  • Groceries, prescription medications, and medical devices are not subject to sales tax.
  • Services like haircuts, repairs, and labor are usually taxed, but some professional services have exemptions.
  • The tax is collected by the seller and sent to New Jersey's Division of Taxation; you do not pay it separately.

What is not taxed in New Jersey

New Jersey exempts several categories from sales tax entirely. Groceries — food you buy to prepare at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared foods, restaurant meals, and items from a deli counter are taxed. If you buy a rotisserie chicken from the grocery store, it is taxed; if you buy raw chicken to cook at home, it is not.

Prescription medications and medical devices prescribed by a doctor are not taxed. Over-the-counter medications like aspirin or cold medicine are taxed. Diabetic testing supplies, hearing aids, and prosthetics are exempt when prescribed. Clothing and footwear under $110 per item are not taxed — this is one of New Jersey's most distinctive rules. A pair of shoes priced at $109 has no tax; the same shoes at $110 are taxed on the full amount.

Newspapers and periodicals are not taxed. Certain services — like professional medical care, legal advice, and accounting — are also exempt. The exemptions are narrow and specific; most services you pay for are taxed.

County and local tax variations

On top of the 6.625 percent state rate, your county adds its own tax. This local portion ranges from 0.5 percent in some areas to 1.25 percent in others. Bergen County, for example, adds 0.625 percent, bringing the total to 7.25 percent. Essex County adds 0.75 percent, for a total of 7.375 percent. Hudson County adds 1.25 percent, reaching 7.875 percent — one of the highest combined rates in the state.

The county tax applies to the same items as the state tax. If an item is exempt from state tax (like groceries or prescription drugs), it is also exempt from the county portion. You cannot avoid the local tax by shopping in a different county — the tax is based on where the sale happens, not where you live. If you buy something in Bergen County, you pay Bergen County's rate, even if you live in Morris County.

How sales tax is calculated and collected

The seller calculates and collects the tax at the point of sale. If you buy a $100 item in a county with a 7.25 percent total rate, the tax is $7.25, and you pay $107.25 total. The seller then sends this tax money to New Jersey's Division of Taxation, usually monthly or quarterly depending on the seller's volume.

For online purchases, the rule depends on the seller's connection to New Jersey. If the seller has a warehouse, office, or other physical location in the state, they must collect New Jersey sales tax. If they do not have a physical presence but meet federal thresholds for remote sales (generally $100,000 in sales or 200 transactions in a year), they must also collect the tax. If neither applies, you may owe use tax — a tax on items you buy out of state for use in New Jersey — though most individuals do not report this on their own.

Services and what gets taxed

Most services are subject to sales tax in New Jersey. Haircuts, car repairs, plumbing, electrical work, and appliance repair are all taxed. Labor charges are taxed even when the parts or materials are not. If a plumber charges you $200 for labor and $100 for a pipe, the $200 is taxed; the $100 may or may not be, depending on whether the pipe itself is a taxable item.

Some services are exempt. Medical services performed by a licensed physician or dentist are not taxed. Legal services are not taxed. Certain educational services are exempt. But most everyday services — cleaning, landscaping, pet grooming, car washing — are taxed. When you call a service provider for a quote, ask whether tax will be added, because it usually will be.

The $110 clothing threshold explained

New Jersey does not tax clothing and footwear under $110 per item. This rule applies to the price of a single item, not the total purchase. If you buy five shirts at $20 each, none are taxed. If you buy one coat for $150, the entire coat is taxed. Accessories like belts, hats, and gloves under $110 are also not taxed.

The threshold applies to the price before any discount. If a $120 jacket is on sale for $90, it is not taxed because the sale price is under $110. If a $100 shirt is on sale for $80, it is not taxed. The rule is straightforward at checkout: if the item's price is under $110, no tax; if it is $110 or more, tax applies to the full price.

Frequently Asked Questions

Do I pay sales tax on groceries?

No. Food you buy to prepare and eat at home — produce, meat, dairy, bread, canned goods — is not taxed. Prepared foods, restaurant meals, deli items, and food from a hot bar are taxed. If you are unsure whether something counts as a grocery, ask the cashier; they see this question often.

What happens if I buy something online from out of state?

If the seller has a physical location in New Jersey or meets federal remote sales thresholds, they must collect New Jersey sales tax at checkout. If they do not, no tax is collected at purchase. You may technically owe use tax on the item, but this is rarely enforced for individual purchases.

Are prescription glasses and contacts taxed?

Prescription eyeglasses and contact lenses are not taxed when they are prescribed by an eye doctor. Non-prescription sunglasses and reading glasses are taxed. Bring your prescription or a copy to the optician to ensure the exemption is applied correctly.

Does the $110 clothing rule apply to shoes?

Yes. Shoes and footwear under $110 are not taxed. This includes sneakers, boots, sandals, and dress shoes. Shoe accessories like insoles or shoe polish are taxed separately if they are sold as individual items.

Can I return an item and get the sales tax back?

When you return an item for a refund, the sales tax is refunded along with the purchase price. If you exchange an item for a different one, the tax adjusts based on the new item's price. Keep your receipt to show proof of the original purchase and tax paid.