New Jersey sales tax is a 6.625% tax on most goods and some services that you pay at the point of sale

When you buy something in New Jersey, the seller adds sales tax to your bill. The state rate is 6.625%, but some counties add an extra local tax on top of that, which can raise the total to 7% or higher depending on where you are. The tax applies to most physical items — clothing, groceries, electronics, furniture — but not to everything. Some goods and services are taxed differently or not taxed at all, and those rules can be confusing because they don't always follow what you'd expect.

The money collected goes to the state and local governments. You don't send in sales tax yourself; the business that sells you the item collects it and sends it to the state. That's why you see it added to your receipt at checkout.

Key Takeaways

  • New Jersey's base sales tax rate is 6.625%, but your county may add a local tax that raises the total to 7% or more.
  • Groceries, prescription medications, and most clothing under $110 per item are not subject to sales tax in New Jersey.
  • Restaurant meals, prepared foods, and most services (haircuts, repairs, professional fees) are taxed at the full rate.
  • The seller collects and remits the tax, so you don't file anything yourself — the tax appears on your receipt.

What is taxed and what is not

New Jersey has a long list of items that are exempt from sales tax. Unprepared groceries — raw meat, produce, bread, milk, eggs, canned goods — are not taxed. Prescription medications and medical devices like diabetic supplies are also exempt. Most clothing and footwear under $110 per item is not taxed, but items over that threshold are. Accessories like belts, hats, and gloves are taxed regardless of price.

Things that are taxed include restaurant meals and takeout food, prepared foods from grocery store delis, and most services. A haircut, car repair, plumbing work, and dental cleaning are all subject to sales tax. Gasoline is taxed. Electricity and natural gas for your home are taxed. Digital products like e-books, streaming subscriptions, and downloaded software are taxed as of 2024.

Some items fall into gray areas. A hot pizza slice from a pizzeria counter is taxed as prepared food, but a frozen pizza you buy from the grocery store shelf is not. A bottle of soda at a restaurant is taxed, but the same bottle from a grocery store is not. The rule is usually: if it's ready to eat or use immediately, it's taxed; if you're taking it home to prepare, it often is not.

County and local tax rates

The state rate of 6.625% is the floor. Most New Jersey counties add their own local sales tax on top of it. The total rate you pay depends on which county you're shopping in. For example, Bergen County adds 0.375%, bringing the total to 7%. Essex County also adds 0.375%. Some counties add less; others add more. A few areas have rates as high as 7.625%.

You can find your county's rate by looking up your zip code on the New Jersey Division of Taxation website, or by asking the cashier. The rate is printed on your receipt. If you shop near a county border, you might notice the tax changes depending on which side you're on.

Who collects and pays the tax

The business selling you the item is responsible for collecting sales tax and sending it to the state. They add it to your bill at checkout. You don't fill out forms or send money to the state yourself — that's the seller's job. If you're buying something online from a New Jersey business, they collect the tax. If you're buying from an out-of-state seller, the rules are more complicated and depend on whether that seller has a physical presence in New Jersey.

If you buy something and the seller doesn't charge you tax when they should have, you don't owe it later. The seller is responsible for the mistake, not you. However, if you're running a business and buying items for resale, you may be able to avoid paying sales tax by providing a resale certificate to the seller.

Sales tax on online purchases

Online retailers must collect New Jersey sales tax on orders shipped to addresses in New Jersey. This applies whether the seller is based in New Jersey or out of state. The tax rate that applies is the rate for the county where the item is being delivered, not where the seller is located.

If you order something online and it's shipped to you in New Jersey, you should see the sales tax added before you complete your purchase. If you don't see it, contact the seller — they may have made an error. You don't need to report or pay the tax yourself; the seller handles it.

Clothing and footwear rules

Most clothing and footwear under $110 per item is not taxed in New Jersey. This includes shirts, pants, dresses, shoes, socks, and hats. The $110 threshold applies to each individual item, not to your total purchase. If you buy a $105 shirt and a $115 jacket, the shirt is not taxed but the jacket is.

Some items that look like clothing are still taxed. Accessories like belts, scarves, gloves, and ties are taxed at any price. Athletic protective gear like helmets and knee pads is taxed. Costume pieces and theatrical clothing are taxed. The rule is: if it's something you wear as clothing to cover your body, it's usually exempt under $110; if it's an accessory or specialty item, it's taxed.

Groceries and food exemptions

Unprepared food — items you take home and cook or prepare yourself — is not taxed. This includes raw vegetables, fruits, meat, poultry, fish, dairy products, bread, cereal, canned goods, frozen vegetables, and pantry staples. Baby formula and baby food are also exempt.

Prepared food and food ready to eat is taxed. This includes restaurant meals, deli sandwiches, hot pizza, rotisserie chicken, prepared salads, and items from a grocery store hot bar. Beverages like soda, juice, and coffee are taxed whether you buy them at a restaurant or a convenience store. Alcohol and tobacco are taxed and also subject to additional state excise taxes.

Frequently Asked Questions

Do I pay sales tax on groceries in New Jersey?

No, most unprepared groceries are not taxed. Raw meat, produce, bread, milk, and canned goods are exempt. However, prepared foods like deli sandwiches, hot pizza, and items from a grocery store hot bar are taxed. Soda and other beverages are taxed even when bought at a grocery store.

What's the total sales tax rate where I live?

The state rate is 6.625%, but your county adds a local tax on top of that. The total ranges from about 6.625% to 7.625% depending on your county. Look up your zip code on the New Jersey Division of Taxation website, or check your receipt from a recent purchase to see the exact rate.

Do I have to pay sales tax on clothes?

Most clothing and footwear under $110 per item is not taxed. Items over $110 are taxed. Accessories like belts, scarves, and gloves are taxed at any price. The $110 limit applies to each individual item, not your total purchase.

Is sales tax added to online orders shipped to New Jersey?

Yes, online retailers must collect New Jersey sales tax on orders shipped to New Jersey addresses. The tax rate is based on the delivery address county, not the seller's location. You should see the tax added before you complete your purchase.

Who is responsible if a seller doesn't charge me sales tax?

The seller is responsible for collecting and remitting sales tax. If they don't charge you when they should, you don't owe it later — the error is on them. However, if you're running a business and buying for resale, you can provide a resale certificate to avoid paying tax.