New Jersey Sales Tax Rates and What They Apply To

New Jersey's current sales tax rate

New Jersey has a 6.625% sales tax on most goods and services. This is the statewide rate that applies in all counties. Unlike some states, New Jersey does not allow counties or municipalities to add their own local sales tax on top of the state rate, so the rate is the same whether you shop in Newark, Atlantic City, or any other city in the state.

The 6.625% rate has been in place since 2006. Before that, the state rate was 6%, and it increased by 0.625 percentage points as part of a budget adjustment. When you see a price tag in a New Jersey store, the final amount you pay at checkout will be the listed price plus 6.625% in sales tax.

Key Takeaways

• New Jersey's statewide sales tax is 6.625%, and this rate applies uniformly across all counties and cities.
• Groceries, prescription medications, and most clothing items under $110 are exempt from sales tax in New Jersey.
• Restaurant meals, prepared foods, and non-prescription drugs are subject to the full 6.625% sales tax.
• Digital goods like e-books, streaming services, and downloaded software are taxed at the standard rate.

What is exempt from sales tax in New Jersey

New Jersey exempts several categories of items from sales tax. Unprepared groceries — items you buy raw and cook at home — are not taxed. This includes fresh produce, meat, dairy, eggs, bread, and canned goods. However, the moment food is prepared for when ready consumption, it becomes taxable. A rotisserie chicken from the grocery store deli counter is taxed; a raw chicken breast is not.

Prescription medications are exempt when you present a valid prescription. Over-the-counter drugs like aspirin, cold medicine, and antacids are taxed. Clothing and footwear under $110 per item are also exempt. A $100 pair of shoes is not taxed; a $150 pair is. The exemption applies to the individual item, not your total purchase, so you could buy five $100 shirts tax-free but pay tax on a $120 jacket.

Medical equipment prescribed by a doctor — such as wheelchairs, crutches, and diabetic testing supplies — is exempt. Items used in manufacturing or agriculture, and certain business equipment, also avoid sales tax, though these exemptions are narrower and depend on how the item is used.

What is taxed at the full 6.625% rate

Restaurant meals and prepared foods are always taxed, regardless of whether you eat in or take out. This includes pizza, deli sandwiches, hot food from a buffet, and coffee from a café. The tax applies to the full price of the meal.

Digital goods and services are taxed at the standard rate. E-books, streaming subscriptions (music, video, gaming), downloaded software, and digital newspapers all incur sales tax. A physical book is not taxed, but the same book as an e-book is. Gasoline and fuel are taxed at 6.625%. Alcohol and tobacco are taxed at the sales tax rate, though they also carry separate excise taxes on top of that.

Haircuts, dry cleaning, car repairs, and other services are taxed. Furniture, electronics, appliances, and clothing above the $110 threshold are all subject to the full rate. If you are unsure whether a specific item is taxed, the retailer's register will calculate it at checkout.

How sales tax is calculated on your purchase

Sales tax in New Jersey is calculated on the subtotal of taxable items only. If you buy a $50 shirt (taxable), a $20 prescription (exempt), and a $30 prepared sandwich (taxable), the tax applies only to the $80 in taxable items. The calculation is $80 × 0.06625 = $5.30 in tax, for a total of $105.30.

Retailers are required to show the tax amount separately on your receipt so you can see exactly what you paid. Online retailers that ship to New Jersey must also collect and remit sales tax, even if the company is based outside the state. This applies whether you shop through a website, a mobile app, or a marketplace like Amazon or eBay.

Sales tax on online and out-of-state purchases

If you order from an online retailer and have it shipped to a New Jersey address, you owe New Jersey sales tax on that purchase. Large online retailers — those with significant sales volume or a physical presence in the state — are required to collect the tax at checkout. Smaller retailers may not collect it, but New Jersey residents are technically responsible for paying the tax themselves through a use tax form on their state income tax return, though this is rarely enforced for individual purchases.

If you travel out of state and buy something there, you do not owe New Jersey sales tax on that purchase. However, if you have it shipped to New Jersey later, the retailer should charge New Jersey tax. The key is the destination address, not where you were when you ordered.

Special sales tax situations in New Jersey

New Jersey has a sales tax holiday in early September, typically lasting one week, during which most clothing and footwear items are exempt from tax regardless of price. The exact dates change each year and are announced by the New Jersey Department of Revenue. During this period, even a $500 designer coat would not be taxed.

Certain nonprofits and government agencies can make tax-exempt purchases by providing a resale certificate or exemption certificate. Businesses that buy goods for resale can also avoid paying sales tax on those purchases by providing documentation to the seller. If you are a business owner, you will need a New Jersey sales tax identification number to make tax-exempt purchases.

Frequently Asked Questions

Is sales tax the same everywhere in New Jersey?

Yes. New Jersey's sales tax rate is 6.625% statewide. There are no local or county variations. Whether you shop in Bergen County, Essex County, or any other part of the state, the rate is identical.

Do I pay sales tax on clothes at the mall?

Only if the item costs $110 or more. A $100 shirt is tax-free; a $120 shirt is taxed. The limit applies per item, so you can buy multiple items under $110 without tax, but each item over $110 is taxed separately.

What about sales tax on groceries?

Unprepared groceries — raw meat, fresh vegetables, bread, milk, canned goods — are not taxed. Prepared foods like rotisserie chicken, deli sandwiches, and hot soup are taxed. The difference is whether the food is ready to eat.

Do I owe sales tax on items I buy online from out-of-state sellers?

If the item is shipped to a New Jersey address, you owe New Jersey sales tax. Large retailers must collect it at checkout. Smaller sellers may not, but you are technically responsible for paying it yourself, though this is rarely enforced for individual purchases.

Is gasoline taxed in New Jersey?

Yes. Gasoline is subject to the 6.625% sales tax, plus a separate fuel tax. The total tax on fuel is higher than the sales tax alone, but the sales tax component is included in the pump price.