New Jersey's sales tax rate and what it covers
New Jersey has a 6.625% sales tax on most goods and services. This is the statewide rate that applies when you buy something at a store, online, or from a service provider. The tax is added to your purchase at checkout — it is not included in the price tag.
Not everything is taxed at this rate. Some items are taxed lower, some are not taxed at all, and some services fall outside the sales tax system entirely. Understanding which category your purchase falls into helps you know what you will actually pay.
Key Takeaways
- New Jersey's statewide sales tax is 6.625%, applied to most retail purchases and many services.
- Groceries, prescription medications, and certain medical equipment are not subject to sales tax in New Jersey.
- Clothing and footwear under $110 per item are tax-free, but items over that threshold are taxed at the full rate.
- Some counties add a local tax on top of the state rate, bringing the total to 7% or higher in certain areas.
- Online purchases from out-of-state sellers are subject to New Jersey sales tax if the seller has a physical presence or meets federal nexus rules.
What is not taxed in New Jersey
Several categories of purchases are completely exempt from New Jersey sales tax. Groceries and food items intended for home consumption are not taxed — this includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed, but raw ingredients you buy to cook at home are not.
Prescription medications are not taxed in New Jersey, whether you buy them at a pharmacy or through mail order. Over-the-counter medications like aspirin or cold medicine are taxed as regular retail items. Medical equipment prescribed by a doctor — such as wheelchairs, crutches, or diabetic testing supplies — is also exempt.
Certain services are not subject to sales tax either. Labor and professional services like haircuts, dental work, legal advice, and home repairs are generally not taxed. However, if you buy a product as part of that service — such as hair dye at a salon or materials for a repair — the product itself may be taxed depending on the situation.
Clothing and footwear under $110
New Jersey has an unusual rule: clothing and footwear items under $110 per item are not taxed. This applies to individual pieces, so a pair of shoes costing $95 is tax-free, but a pair costing $115 is taxed on the full amount.
This threshold applies to the price before tax. If an item is priced at $109.99, it is not taxed. If it is priced at $110 or more, the entire purchase is subject to the 6.625% tax. Accessories like belts, hats, and gloves under $110 are also tax-free, but jewelry and watches are taxed regardless of price.
Local sales tax additions by county
While the statewide rate is 6.625%, some New Jersey counties add a local sales tax on top of that amount. The total rate you pay depends on where you make the purchase, not where you live.
| County | Local Tax Rate | Total Rate |
|---|---|---|
| Bergen, Essex, Hudson, Passaic, Union | 0.375% | 7.0% |
| Atlantic, Cape May, Cumberland, Gloucester, Mercer, Middlesex, Monmouth, Morris, Ocean, Salem, Somerset, Sussex, Warren | 0% | 6.625% |
When you shop in Newark or Jersey City, you pay 7%. When you shop in Atlantic City or Princeton, you pay 6.625%. Online purchases are taxed based on the seller's location or the delivery address, depending on the seller's tax setup.
How sales tax applies to online purchases
If you order something online from an out-of-state retailer and have it shipped to New Jersey, you owe New Jersey sales tax on that purchase. The retailer is required to collect and send the tax to the state if they have a physical presence in New Jersey — such as a warehouse, office, or store location.
Large online retailers like Amazon, Walmart, and Target collect New Jersey sales tax on orders shipped here because they have warehouses or distribution centers in the state. Smaller sellers without a physical presence in New Jersey may not collect the tax at checkout, but you are still legally responsible for paying it. In practice, most consumers do not pay this tax unless the retailer collects it.
The tax rate applied to your online order is based on the delivery address you provide. If you have the item shipped to a Bergen County address, the 7% rate applies. If you have it shipped to an Atlantic County address, the 6.625% rate applies.
Services and what gets taxed
Most services in New Jersey are not subject to sales tax. This includes labor charges for repairs, installation, consulting, and professional work. However, the products used in those services may be taxed separately.
For example, if you hire a plumber to fix a leak, the labor is not taxed. But if the plumber charges you for a new pipe or fitting, that material may be taxed depending on what it is and how it is billed. Some service providers bundle labor and materials into one price, which can affect how the tax is calculated.
Certain services are taxed as a special category. Telecommunications services (phone, internet, cable) are subject to sales tax. Parking fees, hotel rooms, and rental cars are also taxed. Gym memberships and entertainment events like movie tickets are generally not taxed, though some venues add a facility fee that may be taxable.
Frequently Asked Questions
Do I pay sales tax on used items?
Sales tax applies to used items sold by retailers, but not to private sales between individuals. If you buy a used car from a dealership, you pay sales tax. If you buy a used car from a private seller, you do not pay sales tax on the purchase itself, though you will pay registration fees to the state.
What about sales tax on groceries at a restaurant or deli?
Prepared foods and restaurant meals are taxed at the full 6.625% rate (plus any local tax). This includes deli sandwiches, hot foods, and anything meant to be eaten immediately. Raw groceries you buy to take home and cook are not taxed.
Are there any other items besides clothing under $110 that are tax-free?
Yes. Newspapers and magazines are not taxed. Certain medical devices like hearing aids and prosthetics are exempt. Seeds and plants for growing food are not taxed. The full list is long, and the state's tax department website has a detailed guide if you need to check a specific item.
Do I owe sales tax if I buy something out of state and bring it to New Jersey?
No. Sales tax is owed where the purchase is made, not where you live. If you buy something in Pennsylvania and bring it to New Jersey, you do not owe New Jersey sales tax on it. However, if you order it online and have it shipped to New Jersey, you owe New Jersey tax.