NJ Sales And Use Tax is a statewide levy on retail sales and certain services within New Jersey, applying to most goods and some services, with special rules about collection, remittance, exemptions, and compliance. This page provides a comprehensive overview of what is taxed, who is responsible, how rates are set, and essential filing steps for sellers and purchasers in New Jersey.
Scope & Who This Applies To
Applicable in the State of New Jersey, including all counties and municipalities. New Jersey does not allow additional local sales taxes, so the statewide rate applies uniformly.
Obligations fall on retailers (including remote sellers meeting nexus thresholds), service providers, and certain purchasers who acquire taxable items or services for use in New Jersey without paying sales tax at the time of purchase.
Both residents and nonresidents who use/take delivery of taxable goods within New Jersey must comply, including out-of-state businesses making sales to New Jersey customers.
The relevant tax period is typically the calendar year. Tax rates, filing thresholds, and exemptions may change annually. Always check the NJ Division of Taxation official site for the latest figures and current-year guidance.
Key Facts (At-a-Glance)
Item
Details
Tax Year
2025 (latest available on official sites; confirm annually)
Filing Status / Entity Type
Retailers, remote sellers with nexus, in-state purchasers of untaxed goods/services
Rate Structure
Statewide rate of 6.625% (as of 2025); no local sales tax allowed. Some exceptions and special areas apply.
Income Scope
Taxable sales of tangible personal property, specific digital products, certain services; exemptions for groceries, some clothing, prescription drugs, and others
Deductions & Credits
Exemption certificates, resale certificates, direct pay permits
Deadlines
Monthly, quarterly, or annual filing depending on volume; most returns due on or before the 20th day after the end of the period. (Check official forms and instructions for specifics.)
Late filing/payment: Penalties may include interest on unpaid tax and possible additional fines (refer to official schedule for current penalties; “sample/illustrative”: minimum $100/month penalty for missed returns)
How the Tax Is Calculated
Start with the gross receipts from all retail sales of taxable goods and services delivered or used in New Jersey.
Apply exclusions or deductions for sales that qualify for exemption (e.g., sales for resale, groceries, prescription drugs, eligible clothing, or use with an approved certificate).
For taxable receipts, multiply the amount by the statewide sales tax rate (currently 6.625%).
If you are a purchaser who did not pay sales tax at time of purchase for goods brought into New Jersey, calculate use tax at the same rate on the purchase price.
Sellers may be required to collect sales tax from customers at the point of sale and remit it periodically to the state.
Remote sellers and marketplace facilitators may have special rules for collecting/remitting depending on annual sales or transaction volume into New Jersey (“economic nexus” rules apply; confirm on the state portal).
No separate local taxes—only special rules for designated Urban Enterprise Zones and certain commodities (always consult official guidance for exceptions).
Rates, Thresholds & Examples
Bracket/Threshold
Rate
Filing Status
Notes
All taxable retail sales
6.625%
All sellers/purchasers
Standard statewide rate (2025)
Urban Enterprise Zone (UEZ)
Half rate: 3.3125%
Certified sellers in UEZs
Special application; see program eligibility
Remote sellers (nexus: $100,000 sales or 200 transactions/yr in NJ)
6.625%
Remote/marketplace facilitators
Economic nexus for remote sellers
Exempt goods/services
0%
All sellers/purchasers
Groceries, prescription drugs, certain clothing
Sample/Illustrative Example
See below
All retailers
Confirm annually
Representative Example (sample/illustrative): If a retailer sells $1,000 in taxable merchandise, state sales tax due = $66.25 (1,000 x 6.625%). Exempt sales are not included in the taxable base.
Sales for resale are generally exempt if the buyer provides a completed resale certificate.
Direct pay permit holders may self-assess and pay use tax on eligible purchases (not common for individuals).
Common exemptions include sales of prescription drugs, most groceries, certain clothing and footwear, and manufacturing equipment used in production.
Sellers must obtain and retain valid exemption certificates to substantiate exempt sales for audit purposes.
No broad credits exist for sales/use tax; credits for taxes paid to another state on goods brought into NJ may be available in limited cases (seek official guidance).
Documentation & Filing Steps
Collect all records of sales, receipts, and exemption certificates for the filing period. Keep supporting documentation for use tax liabilities on untaxed purchases.
Determine which sales and purchases are subject to NJ sales or use tax, deducting exempt items with proper documentation.
Complete the relevant filing forms online or by mail (e.g., ST-50, ST-51, SST). Download the forms and current instructions from the official forms page.
File returns and remit payments by the due date (usually the 20th of the following month). Registration and returns may be completed through New Jersey’s online filing portal.
Common Pitfalls & Compliance Notes
Missing or incomplete exemption certificates can result in denied exemptions and liability for unpaid tax plus penalties.
Failure to file returns or pay sales/use tax on time triggers penalties and interest. Returned payment or incorrect banking information may further delay processing.
Underreporting or misclassifying taxable vs exempt sales can lead to audits and additional tax due.
Maintain documentation for at least four years in case of state review or audit.
Sales tax is distinct from New Jersey’s Corporation Business Tax and Employer Withholding; each has different filing requirements and tax bases.
Unlike VAT (Value-Added Tax) regimes found internationally, sales tax is only imposed on sales to the final consumer rather than value-added at each stage.
Some states allow local sales taxes; New Jersey’s sales tax applies only at the state level except for designations like Urban Enterprise Zones.
Frequently Asked Questions
What goods and services are exempt from NJ Sales and Use Tax?
Most groceries, prescription drugs, and certain clothing are exempt.
How do remote sellers determine if they must collect NJ sales tax?
If total annual sales into New Jersey exceed $100,000 or 200 separate transactions, remote sellers must register and collect NJ sales tax (“economic nexus”).
What is the deadline for filing NJ sales and use tax returns?
Deadlines depend on your filing frequency (monthly, quarterly, annual), but for most businesses, returns are due by the 20th of the month following the end of the period.
NJ Sales And Use Tax applies to most retail sales and taxable services within the state. Filing and remittance responsibilities can apply both to traditional in-state retailers and remote sellers with economic nexus.
If you operate outside New Jersey, compare state-specific sales/use tax rules, thresholds, and registration requirements before making sales or purchases.
