New Jersey has a sales tax of 6.625 percent on most purchases

New Jersey charges a sales tax of 6.625 percent on the sale of most goods and some services. This is the statewide rate that applies across all counties. Some counties add a local tax on top of the state rate, bringing the total to as high as 7.625 percent in certain areas. The tax is collected by the seller at the point of sale and sent to the New Jersey Division of Taxation.

The rate has been 6.625 percent since 2006. Before that, it was 6 percent. Unlike income tax, which varies by how much you earn, sales tax is the same percentage regardless of what you buy — with important exceptions for certain items and categories.

Key Takeaways

  • New Jersey's statewide sales tax is 6.625 percent, though some counties add local tax that can raise the total to 7.625 percent.
  • Groceries, prescription medications, and most medical equipment are exempt from sales tax in New Jersey.
  • Clothing and footwear under $110 per item are not taxed, but items over that threshold are taxed in full.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax unless they are bundled with taxable goods.

What is exempt from New Jersey sales tax

New Jersey does not tax groceries — this includes items like milk, bread, vegetables, meat, and canned goods. Prepared food and restaurant meals are taxed, but raw ingredients you buy to cook at home are not. This is one of the largest exemptions and affects most households.

Prescription medications are also exempt. Over-the-counter drugs like aspirin or cold medicine are taxed, but anything you need a prescription to buy is not. Medical devices prescribed by a doctor — such as diabetic testing supplies, hearing aids, or mobility aids — are typically exempt as well, though the rules can be specific to the device.

Clothing and footwear under $110 per item escape the tax. A pair of shoes for $85 is not taxed. A winter coat for $109 is not taxed. But a coat for $115 is taxed on the full amount. This threshold applies per item, not per purchase, so you could buy five $100 items tax-free in one transaction.

Items and services that are taxed

Prepared food is taxed at the full rate. This includes restaurant meals, takeout, food from a deli counter, and hot food from a grocery store. Cold prepared food — like a sandwich from a supermarket cooler — may or may not be taxed depending on how it is packaged and labeled.

Services are generally not taxed in New Jersey, with narrow exceptions. A haircut, car repair, plumbing job, or accountant's fee is not subject to sales tax. However, if a service is bundled with a taxable product — for example, if a salon sells you shampoo and charges for a wash — the shampoo portion is taxed. Repairs to tangible goods (fixing a watch, repairing a phone screen) are not taxed, but the parts used in the repair may be.

Digital goods and subscriptions are taxed. This includes e-books, streaming services, downloaded music, and software licenses. Streaming video, music, and gaming subscriptions all carry the 6.625 percent tax.

How county taxes add to the state rate

Seven New Jersey counties add a local sales tax on top of the statewide 6.625 percent. Bergen, Hudson, and Passaic counties each add 0.625 percent, bringing their total to 7.25 percent. Essex and Union counties add 0.75 percent, for a total of 7.375 percent. Linden (within Union County) and Newark (within Essex County) add an additional 0.25 percent local tax, reaching 7.625 percent.

The remaining counties in New Jersey have no local sales tax, so the rate stays at 6.625 percent. If you live near a county border, the tax rate depends on where the sale takes place, not where you live. A purchase made in Bergen County is taxed at Bergen's rate, even if you live in a neighboring county with a lower rate.

Sales tax on clothing and the $110 threshold

New Jersey's clothing exemption is one of the most generous in the country, but it has a specific boundary. Items under $110 are not taxed. Items $110 and above are taxed in full. This applies to shoes, shirts, pants, jackets, hats, gloves, and most other wearable items.

The threshold is per item, not per purchase. If you buy ten $100 shirts, none are taxed. If you buy one $150 jacket, the entire $150 is taxed. Accessories like belts, scarves, and jewelry are treated as clothing and follow the same rule. Underwear, socks, and hosiery are also exempt under $110.

Work uniforms and protective gear follow the same rule. A $95 work shirt is not taxed. A $125 safety vest is taxed. This applies whether you buy the items for personal use or for work.

How to understand your receipt and verify the tax

Your receipt should show the subtotal before tax, the tax amount, and the final total. The tax is calculated on the subtotal, not on individual items (except in cases where some items are exempt). If you bought groceries and a magazine, the tax applies only to the magazine.

To verify the math: multiply the taxable subtotal by 0.06625 (for the statewide rate) or by the appropriate rate for your county. The result should match the tax shown on your receipt. If the numbers do not match, ask the cashier or manager to review the receipt.

If you believe you were charged tax on an exempt item — such as groceries or prescription medication — keep your receipt and contact the store. Most errors are corrected at the point of sale or through a refund request. If a pattern of incorrect taxation occurs, you can file a complaint with the New Jersey Division of Taxation.

Frequently Asked Questions

Do I pay sales tax on groceries in New Jersey?

No. Raw groceries — milk, bread, vegetables, meat, and canned goods — are not taxed. Prepared food, hot food, and restaurant meals are taxed at the full rate. The distinction is whether the food is ready to eat or requires preparation at home.

Is clothing always tax-free in New Jersey?

Clothing under $110 per item is tax-free. Items $110 and above are taxed in full. This applies to shoes, jackets, shirts, and most wearable items. The threshold is per item, so a $95 shirt and a $150 coat in the same purchase are treated differently.

What is the sales tax rate where I live?

The statewide rate is 6.625 percent. Bergen, Hudson, and Passaic counties add 0.625 percent for a total of 7.25 percent. Essex and Union counties add 0.75 percent for a total of 7.375 percent. Newark and Linden add an additional 0.25 percent for a total of 7.625 percent. All other counties use the statewide rate only.

Are prescription medications taxed in New Jersey?

No. Prescription medications are exempt from sales tax. Over-the-counter drugs like aspirin or cough syrup are taxed. Medical devices prescribed by a doctor — such as diabetic supplies or hearing aids — are typically exempt, though the rules depend on the specific device.

Do I pay sales tax on streaming services or digital downloads?

Yes. Streaming video, music, and gaming subscriptions are subject to the full sales tax rate. Downloaded e-books, music, and software are also taxed. This applies whether you subscribe monthly or purchase individual items.