Yes, New Jersey has a sales tax of 6.625 percent
New Jersey charges a 6.625 percent sales tax on most retail purchases. This is the statewide rate that applies in all counties. Some counties add a local tax on top of the state rate, bringing the total to as high as 7.625 percent depending on where you shop.
The tax is collected by the seller at the point of sale and sent to the New Jersey Division of Taxation. You will see it added to your receipt when you buy most goods and many services.
Key Takeaways
- New Jersey's statewide sales tax is 6.625 percent, and some counties add an additional local tax of up to 1 percent.
- Groceries, prescription medications, and certain medical equipment are exempt from sales tax in New Jersey.
- Clothing and footwear under $110 per item are exempt, but items over that threshold are taxed.
- Services like haircuts, repairs, and labor are generally taxed, though some professional services have different rules.
How the local tax works on top of the state rate
While the state rate is uniform at 6.625 percent, 13 counties in New Jersey add their own local sales tax. This local portion ranges from 0.5 percent to 1 percent, depending on the county. Bergen, Essex, Hudson, and Union counties each add 1 percent, making the total rate 7.625 percent in those areas.
Other counties like Atlantic, Camden, and Passaic add 0.5 percent, bringing their total to 7.125 percent. The remaining counties have no local addition and stay at the statewide 6.625 percent. The total rate you pay depends entirely on which county you are shopping in, not where you live.
What is exempt from New Jersey sales tax
Groceries are the largest category exempt from sales tax in New Jersey. This includes items like milk, bread, meat, vegetables, and canned goods. However, prepared foods, candy, and items bought at restaurants or delis are taxed.
Prescription medications and certain medical devices are also exempt. Diabetic testing supplies, hearing aids, and prosthetic devices do not carry sales tax. Clothing and footwear under $110 per item are exempt as well, but a single item priced at $110 or more is taxed on the full amount.
Some services fall outside the sales tax system. Legal services, accounting, and certain professional consultations are not taxed. However, services like haircuts, car repairs, and appliance repairs are subject to sales tax.
Items that are always taxed
Prepared food and beverages are taxed, whether you buy them at a restaurant, coffee shop, or deli counter. Alcohol and tobacco products carry sales tax plus additional excise taxes. Gasoline, diesel, and other motor fuels have their own tax structure separate from sales tax.
Household goods, electronics, furniture, and most other retail items are taxed at the full rate. Services like haircuts, plumbing, electrical work, and car repairs are taxed. Gym memberships and entertainment tickets are also subject to sales tax.
How to find the exact rate for your county
The New Jersey Division of Taxation maintains a list of all county rates on its website. You can search by county name to find the exact combined state and local rate. The rates do not change frequently, but it is worth checking if you are shopping near a county border or planning a large purchase.
When you shop online from a New Jersey address, the seller should charge you the sales tax rate for your county. If you are unsure whether a specific item is taxed, the store's cashier or customer service can tell you before you buy.
The $110 clothing threshold explained
New Jersey's clothing exemption applies only to items under $110. If a shirt costs $85, it is not taxed. If the same shirt costs $115, the entire $115 is subject to tax—there is no partial exemption.
This rule applies to individual items, not to your total purchase. If you buy five $20 shirts, none of them are taxed. If you buy one $150 coat, the full price is taxed. Accessories like belts, hats, and scarves under $110 are also exempt, but shoes are treated as clothing for this purpose.
Frequently Asked Questions
Do I pay sales tax on online purchases from out-of-state sellers?
Most large online retailers now collect New Jersey sales tax on orders shipped to New Jersey addresses, even if the company is based elsewhere. Smaller sellers may not, but you are responsible for reporting the tax owed on your state income tax return if they do not collect it.
Is there sales tax on used items or secondhand goods?
Sales tax applies to used goods sold by businesses, including used cars and used furniture from stores. Items sold between private individuals do not have sales tax, but you cannot always tell the difference at a flea market or online marketplace.
What about tax on services like haircuts or car repairs?
Yes, labor and services are taxed in New Jersey. A haircut, oil change, plumbing repair, or appliance fix all carry sales tax on the full bill, including both parts and labor.
Are there any other taxes besides sales tax I should know about?
New Jersey has income tax, property tax, and excise taxes on gasoline, alcohol, and tobacco. Sales tax is separate from these. Some items like cigarettes carry both sales tax and a per-pack excise tax.
Can I get a sales tax refund if I overpaid?
If a store charged you tax on an exempt item by mistake, ask for a refund at the register or customer service desk. Keep your receipt. For larger errors, contact the store's management or the New Jersey Division of Taxation.