New Jersey has a sales tax, and it applies to most goods you buy
Yes, New Jersey charges sales tax on most purchases. The state sales tax rate is 6.625%, and it applies when you buy tangible goods — things you can touch and take home. The tax is added at the register, so the final price you pay is higher than the sticker price.
Some counties in New Jersey add an additional local tax on top of the state rate. This means your total sales tax can range from 6.625% to 7.625% depending on where you shop. The county tax applies in Bergen, Hudson, Passaic, and Sussex counties.
Sales tax does not explore to services — only to physical items. A haircut, a car repair, or a plumbing visit is not taxed. But the shampoo you buy at a salon or the parts used in that repair are taxed.
Key Takeaways
- New Jersey's state sales tax is 6.625%, and some counties add up to 1% more, bringing the total to as high as 7.625%.
- Sales tax applies to goods you buy in stores and online, but not to services like haircuts, repairs, or medical care.
- Groceries, prescription medications, and certain medical equipment are exempt from sales tax in New Jersey.
- When you buy something online from an out-of-state seller, New Jersey may still charge sales tax if the seller has a physical presence in the state.
What is exempt from New Jersey sales tax
New Jersey exempts several categories of items from sales tax. Groceries — food you cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared foods, candy, and drinks are taxed.
Prescription medications are exempt. Over-the-counter medicines like aspirin and cold remedies are taxed, but prescription drugs filled by a pharmacist are not. Medical equipment such as wheelchairs, crutches, and diabetic testing supplies are also exempt.
Clothing and footwear under $110 per item are exempt from sales tax in New Jersey. If a single piece of clothing costs $110 or more, the full price is taxed. This applies to coats, pants, shirts, shoes, and accessories like belts and hats.
County sales tax rates in New Jersey
Most of New Jersey charges only the state rate of 6.625%. However, four counties have added a local sales tax:
| County | Total Sales Tax Rate |
|---|---|
| Bergen | 7.625% |
| Hudson | 7.625% |
| Passaic | 7.625% |
| Sussex | 7.625% |
| All other counties | 6.625% |
The local tax in these four counties funds county services and infrastructure. When you shop in Bergen, Hudson, Passaic, or Sussex, you will pay 1% more in sales tax than you would in other parts of the state.
How sales tax works on online purchases
If you buy something online from a retailer that has a physical store, warehouse, or office in New Jersey, the retailer must charge you New Jersey sales tax — even if the item ships from out of state. This applies to large retailers like Amazon, Walmart, and Target.
If you buy from a small out-of-state seller with no presence in New Jersey, they may not charge you sales tax at checkout. However, New Jersey law requires you to pay use tax on that purchase when you file your state income tax return. Use tax is the same rate as sales tax and covers items you bought out of state but use in New Jersey. Most people do not report use tax, but it is technically owed.
What happens if you do not pay sales tax
Sales tax is collected by the retailer and sent to the state, so you do not write a check for it yourself. The tax is built into the price you pay at the register or online. You cannot avoid it by paying cash or using a different payment method — the tax applies the same way.
If a retailer fails to collect or send sales tax to the state, that is the retailer's legal problem, not yours. You are not responsible for tracking whether a business paid the tax it collected from you.
Sales tax on specific items you might question
Restaurant meals and takeout are taxed at the full rate. Whether you eat in the restaurant or take food home, sales tax applies. This includes coffee, sandwiches, and pizza.
Gasoline is taxed, but the tax is included in the per-gallon price you see on the pump. You do not see it added separately.
Alcohol — beer, wine, and liquor — is taxed at the regular sales tax rate when you buy it at a store. Alcohol served at a bar or restaurant is also taxed.
Cigarettes and vaping products are taxed at the sales tax rate, plus New Jersey charges an additional excise tax on these items.
Frequently Asked Questions
Do I pay sales tax on clothing in New Jersey?
Clothing and shoes under $110 per item are exempt from sales tax. If a single piece costs $110 or more, you pay tax on the full amount. Accessories like belts, scarves, and hats under $110 are also exempt.
Is there sales tax on groceries?
Food you cook at home — bread, milk, vegetables, meat, and canned goods — is not taxed. Prepared foods, candy, soda, and hot drinks are taxed. The difference is whether the food is ready to eat or requires preparation.
What is the difference between sales tax and use tax?
Sales tax is charged when you buy something in New Jersey. Use tax is owed on items you buy out of state but use in New Jersey. They are the same rate, but use tax is your responsibility to report on your tax return if the seller did not charge it.
Do I pay sales tax on prescription drugs?
Prescription medications are exempt from sales tax in New Jersey. Over-the-counter medicines like aspirin and cough syrup are taxed. Ask your pharmacist if you are unsure whether a specific medication is prescription or over-the-counter.
Is sales tax added to the price shown on the shelf?
Yes. The price on the shelf or online does not include sales tax. The tax is added at checkout, so your final bill will be higher than the sticker price.