New Jersey's Sales Tax Rate

New Jersey has a 6.625% sales tax on most retail purchases. This is the statewide rate that applies in all counties. Unlike some 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% is the only sales tax you pay at checkout.

The rate has been 6.625% since 2006. It applies to tangible goods — things you can touch and take home — when you buy them at a store, online, or through mail order. Services are generally not taxed in New Jersey, with specific exceptions listed below.

Key Takeaways

  • New Jersey's statewide sales tax is 6.625% with no additional local taxes added by counties or cities.
  • The tax applies to most physical goods but not to services, groceries, or prescription medications.
  • Clothing and footwear under $110 per item are exempt from sales tax.
  • Online purchases from out-of-state sellers are subject to New Jersey sales tax if the seller has a physical presence in the state.

What Is and Isn't Taxed in New Jersey

Food you buy at a grocery store is not taxed, including fresh produce, meat, dairy, and bread. However, prepared foods — items from a deli counter, restaurant, or food truck — are taxed at the full 6.625% rate. The line between "prepared" and "unprepared" matters: a rotisserie chicken from a grocery store is taxed, but raw chicken is not.

Prescription medications are exempt from sales tax. Over-the-counter medications like pain relievers, cold medicine, and vitamins are taxed. Medical equipment such as wheelchairs, crutches, and glucose monitors is also taxed.

Clothing and footwear under $110 per item are exempt from sales tax. If a single item costs $110 or more, the entire purchase is taxed. A pair of shoes priced at $109.99 is tax-free; a pair at $110 or higher is taxed. This applies to children's clothing as well.

Services — haircuts, plumbing repairs, car maintenance, legal advice — are generally not taxed. However, some services do carry sales tax: dry cleaning, laundry services, and certain telecommunications services are taxed at 6.625%.

How Sales Tax Works on Online and Out-of-State Purchases

If you order from an online retailer that has a physical location, warehouse, or office in New Jersey, you owe New Jersey sales tax on that purchase. This includes major retailers like Amazon (which has fulfillment centers in the state) and most national chains. The retailer collects the tax at checkout.

If you order from a seller with no physical presence in New Jersey, the retailer is not required to collect New Jersey sales tax at the time of purchase. However, New Jersey law requires you to pay "use tax" — which is 6.625% — on those purchases yourself when you file your state income tax return. In practice, most individual shoppers do not report this, but it is technically owed.

Mail-order purchases follow the same rule: if the company has a New Jersey location, tax is collected; if not, use tax applies but is rarely enforced for individual consumers.

Who Collects and Pays the Sales Tax

The retailer or seller collects sales tax from you at the point of sale and holds it temporarily. They then remit it to the New Jersey Division of Taxation. The retailer is responsible for calculating the correct amount, filing returns (usually monthly or quarterly depending on sales volume), and paying what they owe.

As a consumer, you do not file sales tax directly — the retailer handles it. Your only responsibility is to pay the tax when you check out. If a retailer fails to collect or remit sales tax, that is a violation they face, not you.

Sales Tax Exemptions for Specific Groups

Certain organizations can buy goods without paying sales tax if they have a valid resale certificate or tax exemption certificate. These include registered nonprofits, religious organizations, and businesses buying goods they will resell. A resale certificate tells the retailer that the buyer intends to resell the item, so the tax is deferred until the final consumer buys it.

If you work for a nonprofit or tax-exempt organization, you cannot use the organization's exemption for personal purchases. The exemption applies only to purchases the organization makes for its own operations or inventory.

Frequently Asked Questions

Do I pay sales tax on items I buy online from New Jersey retailers?

Yes, if the retailer has any physical presence in New Jersey — a store, warehouse, or office — they must collect 6.625% sales tax on your order. This applies whether you pick up in-store or have it shipped to you.

Is there a sales tax on used items or secondhand goods?

Sales tax does not apply to private sales between individuals. If you buy a used car, furniture, or clothing from a private person, there is no sales tax. If you buy used items from a business or thrift store, sales tax applies at 6.625%.

What counts as clothing that is exempt under the $110 rule?

Clothing and footwear designed to be worn on the body are exempt if under $110 per item. This includes shirts, pants, dresses, socks, shoes, hats, and gloves. Accessories like belts, scarves, and jewelry are taxed. Sports equipment like skis or roller skates is taxed even though you wear it.

Do I owe sales tax on a service like a haircut or car repair?

Most services are not taxed in New Jersey. Haircuts, plumbing, car repairs, and medical services have no sales tax. Exceptions include dry cleaning, laundry, and some telecommunications services, which are taxed at 6.625%.

What is the difference between sales tax and use tax?

Sales tax is collected by the retailer when you buy something. Use tax is a tax you owe on purchases where sales tax was not collected — typically out-of-state online orders. Both rates are 6.625%. You are supposed to report use tax on your state income tax return, though enforcement for individual consumers is rare.