Total Range for 2025
| Base state sales tax rate | 6.63% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 6.63% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
Since there is no local imposed tax range across New Jersey the total sales tax is just 6.625%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
If you sell a product for $100 in a location with a sales tax rate of 6.625%, the sales tax amount would be $6.625 (100 x 6.6255%). You would collect a rounded up total $106.63 ($100 + $6.625) from the customer.
Nexus: Why may you need to collect sales tax in New Jersey?
If you’re selling goods and services in New Jersey, to determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in New Jersey, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within New Jersey exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
In New Jersey, the economic nexus threshold is based on either exceeding $100,000 in gross sales or having more than 200 separate transactions delivered to New Jersey customers within a calendar year.
By understanding these reasons and nexus rules, businesses can determine their responsibility to collect sales tax in New Jersey.
Services
- Generally, services themselves are not taxable in New Jersey. This includes professional services like haircuts, legal representation, and consulting fees.
- However, if a service is directly tied to the sale of tangible personal property, and the service charge is included in the sales price, the entire sale might be taxable.
Goods
- Most tangible personal property sold in New Jersey is taxable. This includes common items like furniture, sporting goods, etc.
- There are some exceptions for specific goods, such as: Certain unprepared food items, prescription drugs and medical devices and certain farm machinery and equipment
Freight/Shipping
- Separately stated shipping and transportation charges are generally not taxable in New Jersey. This means they must be clearly shown as a separate line item on your invoice, not included in the sales price of the product.
Clothing
- Most clothing and footwear intended for human use are exempt from New Jersey sales and use tax.
- However, certain items, such as accessories, equipment, fur clothing, and sports or recreational gear, are still subject to tax. Protective equipment is also taxable unless it is necessary for the daily work of the user.
Electronics
- Sales of any and all electronics are taxable in New Jersey
SaaS
- SaaS is considered a service and is not taxable in New Jersey
Digital Products
- Certain digital products are subject to New Jersey sales and use tax, including charges for installing, maintaining, servicing, or repairing these digital products.
Software
- Prewritten computer software delivered electronically is considered tangible personal property and therefore taxable.
How to register for sales tax in New Jersey
If you’ve determined you need to collect sales tax in New Jersey, registering for a Sales Tax Certificate is the next step. Here’s how you can do it:
- Online Registration:
- The New Jersey Division of Revenue and Enterprise Services (DORES) recommends online registration through their Business Registration System. It’s generally faster and more convenient.
- Here’s what you’ll need: Business name and address, contact information, Federal Employer Identification Number (EIN), business activity start date, projected monthly sales and taxable sales and a list of the products or services offered
- Paper Application:
- If online registration isn’t an option, you can also apply for a Sales Tax Certificate by mail using a paper application (Form REG-1).
- Download the New Jersey Business Registration Application (Form REG-1) from the DORES website.
- Complete the form following the instructions provided.
- Mail the completed application form along with any required documentation to the address listed on the form.
- If online registration isn’t an option, you can also apply for a Sales Tax Certificate by mail using a paper application (Form REG-1).
Whichever method you choose, make sure to have all the necessary information readily available to ensure a smooth registration process.
- Additional Notes:
- You may be required to file a surety bond along with your application, depending on your business type and projected sales tax liability.
- Once your application is approved, you’ll receive a Sales Tax Certificate with your registration number. You’ll need this number to collect and report sales tax.
For more detailed information and specific instructions, contact sales tax professionals like Yonda Tax or visit the New Jersey Division of Revenue and Enterprise Services website.
How to collect sales tax in New Jersey
Here’s how to collect sales tax in New Jersey:
- Determine the Sales Tax Rate:
The sales tax rate in New Jersey is a statewide flat rate of 6.625%. However, some localities in New Jersey may have additional sales tax rates on top of the base rate.
You can find the specific sales tax rate for the location where your business is located or where you’re delivering goods/services by using the New Jersey Department of Taxation’s Sales Tax Rate Look Up tool.
- Apply the Right Sales Tax Rate:
- Once you know the applicable tax rate, simply add it to the taxable sales price of your goods or services to determine the amount of sales tax to collect from the customer.
- Keep Records of Sales Tax Collected:
- It’s crucial to maintain accurate records of your sales and sales tax collected. These records are essential for filing sales tax returns and during any potential audits by the state.
- Report and Remit Sales Tax:
- New Jersey businesses are required to file sales tax returns and remit the collected tax on a regular basis. The specific filing frequency depends on your business’s total sales tax liability.
- Generally, businesses with lower sales tax liability will file quarterly, while those with higher liability may need to file monthly.
You can find detailed information on sales tax filing deadlines and remittance procedures on the New Jersey Division of Revenue and Enterprise Services website or by contacting them directly.
Additional Tips:
- Consider hiring a sales tax wingman to take care of calculations, filing, and remittance, saving you time and ensuring accuracy.
- Stay informed: Sales tax laws and regulations can change, so stay updated on any changes that might affect your business.
How to get a sales tax permit/license in New Jersey?
To obtain a sales tax permit in New Jersey, you need to register your business with the New Jersey Division of Revenue and Enterprise Services. This can be done online through the Division’s Business Registration Application (NJ-REG) portal.
During the registration process, you’ll be required to provide information such as your business name, address, Federal Employer Identification Number (FEIN) or Social Security Number (SSN), and details about your business activities. Once your application is processed, you will receive a Certificate of Authority, which authorizes you to collect sales tax on taxable sales in New Jersey.
When are New Jersey’s sales tax returns due?
In New Jersey, sales tax returns are due based on your assigned filing frequency:
- Monthly: Returns are due on the 20th day of the month following the reporting period. For example, the return for July is due by August 20th.
- Quarterly: Returns are due on the 20th day of the month following the end of the quarter. For example, the return for the first quarter (January-March) is due by April 20th.
- Annually: Annual returns, for businesses that qualify for this option, are due by January 20th of the following year.
If a due date falls on a weekend or holiday, the return is due the next business day. Filing on time is important to avoid penalties and interest.
Is anyone exempt from sales tax in New Jersey?
Yes, New Jersey provides several exemptions from sales tax. Key exemptions include:
- Certain Goods and Services:
- Most clothing and footwear designed for human use are exempt, though certain items like accessories, sports equipment, and protective gear may still be taxable.
- Most food items intended for home consumption are exempt from sales tax, with exceptions for prepared foods and certain beverages.
- Prescription medications and certain medical equipment, such as wheelchairs and prosthetics, are exempt.
- Sales for Resale:
- Items purchased for resale are exempt from sales tax when the buyer provides a valid resale certificate.
- Nonprofit Organizations:
- Purchases made by qualifying nonprofit organizations are generally exempt from sales tax, provided they present a valid exemption certificate.
- Government Entities:
- Purchases made by federal, state, and local government agencies are exempt from sales tax.
Do I Have to Collect Sales Tax from New Jersey Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
New Jersey has a marketplace facilitator law, meaning online marketplaces like Amazon, Walmart, etc., should collect sales tax on behalf of third-party marketplace sellers.
Like in many states, sales made via marketplaces still count toward your New Jersey economic nexus threshold.
If you’re over the economic nexus threshold in New Jersey and only sell to New Jersey buyers via marketplaces, then you need to register for a New Jersey sales tax permit. But you can request to be placed on a non-reporting basis so that you aren't required to file New Jersey sales tax returns.
