New Jersey's current sales tax rate

New Jersey charges a 6.625% sales tax on most retail purchases. This is the statewide rate that applies when you buy goods at a store, online, or through mail order.

Some counties add a local tax on top of the state rate. Bergen County, Hudson County, and Linden each add 0.5%, bringing their total to 7.125%. If you live or shop in one of these areas, you pay the higher rate at checkout.

Key Takeaways

  • New Jersey's base sales tax is 6.625%, but Bergen County, Hudson County, and Linden add an extra 0.5% for a total of 7.125%.
  • Groceries, prescription medications, and most clothing under $110 per item are exempt from sales tax in New Jersey.
  • Prepared food, restaurant meals, and takeout are taxed at the full rate, but unprepared groceries are not.
  • Online purchases from out-of-state sellers are subject to New Jersey sales tax if the seller has a physical presence in the state or meets federal reporting thresholds.

What is and isn't taxed in New Jersey

New Jersey exempts certain items from sales tax entirely. Unprepared food — groceries you cook at home — is not taxed. This includes raw meat, vegetables, bread, milk, and canned goods. The moment food is prepared for immediate consumption, the tax applies: a sandwich from a deli counter, a rotisserie chicken, or a coffee all get taxed.

Prescription medications are exempt when filled with a valid prescription. Over-the-counter medicines like aspirin or cold medicine are taxed. Clothing and footwear under $110 per item are also exempt — a $100 shirt is not taxed, but a $150 jacket is taxed on the full amount.

Services are generally not taxed in New Jersey, with some exceptions. A haircut, plumbing repair, or car wash has no sales tax. However, certain services bundled with goods — like installation of a water heater or alteration of clothing — may be taxed depending on how the invoice is written.

How sales tax works on online purchases

If you order from an out-of-state online retailer, New Jersey sales tax still applies if that retailer has a physical presence in the state — a warehouse, office, or affiliate. Major retailers like Amazon, Walmart, and Target collect New Jersey tax on orders shipped to the state because they operate distribution centers here.

Smaller sellers without a New Jersey location may not collect the tax at checkout. You are technically responsible for paying use tax — the equivalent of sales tax — on those purchases when you file your state income tax return. In practice, most individual taxpayers do not report this, but the obligation exists.

Sales tax on specific categories

Restaurant meals and takeout are taxed at the full 6.625% (or 7.125% in high-tax counties). This includes fast food, delivery orders, and food from a deli counter. The only exception is if you order groceries for home delivery through a service like Amazon Fresh or Instacart — those are not taxed because the items themselves are not taxed.

Alcohol and tobacco are taxed at the regular sales tax rate, plus they carry their own state excise taxes. A bottle of wine pays 6.625% sales tax plus the state excise tax. Gasoline is not subject to sales tax but has its own per-gallon tax.

Digital products — e-books, streaming subscriptions, downloaded music, and software — are taxed in New Jersey. A Kindle book or a monthly Netflix subscription is subject to sales tax. These charges appear on your receipt or billing statement just as physical purchases do.

Who collects and pays the tax

The retailer or seller collects sales tax from you at the point of sale and sends it to the New Jersey Division of Taxation. You do not file a separate form or send payment yourself for normal purchases — the tax is included in your receipt total.

Businesses that sell taxable goods must register with the state and file sales tax returns monthly or quarterly, depending on their sales volume. If you are self-employed or run a small business, you will need to register and handle these filings yourself. The New Jersey Division of Taxation maintains a list of registered sellers and provides filing deadlines throughout the year.

County-by-county tax variations

Beyond Bergen, Hudson, and Linden, most New Jersey counties charge only the base 6.625% rate. However, tax rates can shift if you cross county lines during a shopping trip. A purchase in Bergen County costs more than the same purchase in an adjacent county without the local addition.

When you shop online, the tax rate applied depends on the delivery address you provide, not where the seller is located. If you have items shipped to a Bergen County address, you pay 7.125% even if the retailer is based elsewhere in the state.

Frequently Asked Questions

Do I pay sales tax on clothes in New Jersey?

Clothing and footwear under $110 per item are not taxed. A $100 pair of jeans is tax-free, but a $150 winter coat is taxed on the full $150. If you buy multiple items in one transaction, each item is evaluated separately at its individual price.

Is prepared food taxed differently than groceries?

Yes. Unprepared groceries — raw ingredients you cook at home — are not taxed. Prepared food, including deli items, restaurant meals, and takeout, is taxed at 6.625% (or 7.125% in high-tax counties). A rotisserie chicken from the grocery store is taxed; a raw chicken is not.

What about prescription versus over-the-counter drugs?

Prescription medications filled with a valid prescription are exempt from sales tax. Over-the-counter medications like ibuprofen, cold medicine, or antacids are taxed at the regular rate. The difference is whether a pharmacist filled it under a doctor's order.

Do I owe tax on items I buy from out-of-state websites?

If the seller has a physical location in New Jersey or meets federal reporting thresholds, they collect New Jersey tax at checkout. If they do not, you technically owe use tax on your state income tax return, though most individuals do not report it. Large retailers almost always collect the tax because they operate warehouses in the state.

How do I know what county tax rate applies to my purchase?

Your delivery address determines the tax rate. If you live in Bergen, Hudson, or Linden, you pay 7.125%. Everywhere else in New Jersey, you pay 6.625%. Online retailers calculate this automatically based on the zip code you enter at checkout.