New Jersey's sales tax rate and what it covers
New Jersey has a statewide sales tax of 6.625 percent. This is the rate that applies to most taxable purchases across the state. Some counties add a local tax on top of the state rate, which means your total sales tax can be higher depending on where you buy.
The state rate of 6.625 percent has been in place since 2006. When you buy something at a store or online and it ships to New Jersey, you pay this base rate plus any local additions. The final amount you see on your receipt depends on the county and sometimes the municipality where the sale happens.
Key Takeaways
- New Jersey's statewide sales tax is 6.625 percent, and most counties add a local tax on top of that amount.
- Your total sales tax rate ranges from 6.625 percent to 7.625 percent depending on which county you are in.
- Groceries, prescription medications, and clothing under $110 per item are not subject to sales tax in New Jersey.
- Online purchases and mail orders are taxed the same way as in-store purchases when they ship to a New Jersey address.
County and local sales tax additions
Most New Jersey counties add a local sales tax on top of the state rate. These additions range from 0 to 1 percent depending on the county. Bergen County, Essex County, Hudson County, and Union County each add 1 percent, bringing the total rate to 7.625 percent in those areas. Other counties add 0.5 percent or no additional tax at all.
The county where the sale takes place determines which local rate applies, not the county where you live. If you buy something in Bergen County, you pay Bergen County's rate even if you live elsewhere. The same applies to online purchases—the tax is based on the delivery address.
| County | Local Tax Rate | Total Sales Tax |
|---|---|---|
| Bergen, Essex, Hudson, Union | 1.0% | 7.625% |
| Atlantic, Cape May, Cumberland, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Warren | 0.5% | 7.125% |
| Gloucester | 0% | 6.625% |
What is not taxed in New Jersey
New Jersey exempts certain items from sales tax. Groceries and food items for home consumption are not taxed, though prepared foods and restaurant meals are. Prescription medications are also exempt. Clothing and footwear under $110 per item are not subject to tax; items priced at $110 or more are taxed on the full amount.
Medical equipment like wheelchairs, crutches, and hearing aids are exempt. Newspapers and magazines are not taxed. Certain services are also exempt, including haircuts, dry cleaning, and repairs to clothing or shoes. The exemptions can be detailed, so if you are unsure whether a specific item is taxed, the New Jersey Division of Taxation website lists the full rules.
How sales tax works on online and mail orders
When you order something online or by mail and it ships to New Jersey, sales tax is calculated based on your delivery address. If the seller collects tax, they use the rate for the county where the package arrives. This applies whether you order from a New Jersey business or an out-of-state one.
Some online sellers do not collect New Jersey sales tax at checkout. In those cases, you may be responsible for reporting the purchase on your own tax return, though this is rarely enforced for individual purchases. Most major retailers now collect the tax automatically, so you will see it added to your order total.
Sales tax on vehicles and special purchases
Motor vehicles are subject to sales tax in New Jersey, calculated on the purchase price. The rate depends on the county where you register the vehicle. When you buy a car from a dealer, the tax is usually collected at the time of sale and included in your final bill.
Used vehicles are also taxed. If you buy a used car from a private seller, you still owe sales tax when you register it with the Motor Vehicle Commission. The tax is based on the sale price you report, and you pay it as part of the registration process.
How to find your exact local rate
To find the exact sales tax rate for a specific location, you can use the New Jersey Division of Taxation's online rate finder on their website. Enter the municipality or zip code, and it will show you the combined state and local rate for that area. This is useful if you are buying something in a county different from where you live.
Retailers are required to display the sales tax rate on receipts. If you notice a discrepancy between what you expected and what you were charged, check your receipt to see which county rate was applied. If the rate seems wrong, contact the retailer or the Division of Taxation for clarification.
Frequently Asked Questions
Do I pay sales tax on groceries in New Jersey?
No. Groceries and food items for home consumption are exempt from sales tax. This includes items like bread, milk, vegetables, and meat. However, prepared foods, restaurant meals, and items like candy and soda are taxed.
Is clothing always tax-free in New Jersey?
Clothing and footwear under $110 per item are tax-free. If a single item costs $110 or more, the entire purchase is taxed. For example, a $105 jacket is not taxed, but a $115 jacket is taxed on the full $115.
What is the sales tax rate in my county?
The rate depends on which county you are in. Most counties add 0.5 to 1 percent to the state rate of 6.625 percent, bringing the total to between 7.125 and 7.625 percent. Use the New Jersey Division of Taxation's online rate finder to check your specific location.
Do I pay sales tax on prescription medications?
No. Prescription medications are exempt from sales tax in New Jersey. Over-the-counter medications and vitamins are taxed as regular retail items.
How is sales tax calculated on online purchases?
Sales tax on online orders is based on the delivery address. The seller uses the sales tax rate for the county where the package arrives. Most major online retailers collect this tax automatically at checkout.