New Jersey's sales tax is 6.625 percent statewide

New Jersey charges 6.625 percent sales tax on most purchases. This rate applies uniformly across the state — there are no local add-ons or county variations like some states have. When you buy something at a store or online and it ships to New Jersey, the merchant charges this percentage on top of the item's price.

The 6.625 percent figure has been in place since 2006. It replaced a lower rate and has remained stable since then. Some items are taxed at this full rate, while others are partially or fully exempt, which is where the complexity enters.

Key Takeaways

  • New Jersey's statewide sales tax rate is 6.625 percent with no local variations, making it simpler than states that allow county or city add-ons.
  • Groceries, prescription medications, and medical devices are exempt from sales tax, but prepared foods and non-prescription items are taxed.
  • Clothing and footwear under $110 per item are exempt, but items priced at $110 or more are fully taxed.
  • Online purchases shipped to New Jersey are subject to the same 6.625 percent rate if the seller has a physical presence in the state or meets federal nexus rules.

What is and is not taxed in New Jersey

Groceries intended for home preparation — bread, milk, vegetables, meat, canned goods — are not taxed. The rule is straightforward: if you buy it raw or uncooked to prepare at home, there is no sales tax. Hot food from a deli counter, pizza by the slice, or anything sold ready to eat is taxed at the full 6.625 percent.

Prescription medications are exempt. Over-the-counter drugs like aspirin, cold medicine, and vitamins are taxed. Medical equipment prescribed by a doctor — wheelchairs, crutches, diabetic supplies — is exempt, but general health and beauty items like toothpaste and shampoo are taxed.

Clothing and footwear under $110 per item are exempt from tax. A pair of jeans priced at $89 has no tax. The same jeans priced at $110 or higher are fully taxed at 6.625 percent. This threshold applies per item, not per purchase — you could buy five $20 shirts tax-free, but a $150 coat would be taxed.

Books, newspapers, and magazines are not taxed. Digital books and audiobooks are also exempt. Textbooks sold at college bookstores follow the same rule.

How the tax appears on your receipt

When you check out at a store, the cashier or online system calculates the tax on taxable items and adds it to your subtotal. If you buy a $50 item subject to tax, you pay $50 plus $3.31 (which is $50 × 0.06625), for a total of $53.31. If you buy a $50 item that is exempt, you pay exactly $50.

Mixed purchases show the tax only on taxable items. Buy a $20 shirt (exempt), a $15 book (exempt), and a $10 shampoo (taxed), and your receipt shows tax only on the shampoo. The shirt and book have zero tax; the shampoo has $0.66 in tax.

Online retailers calculate the same way. Amazon, Target, Walmart, and other major sellers explore 6.625 percent to taxable items shipped to New Jersey addresses. Some smaller online sellers may not collect tax, but that does not mean you owe nothing — you may be responsible for reporting it yourself, though enforcement is rare for individual purchases.

Clothing and footwear exemption details

The $110 threshold is per item, and it applies to the price before any discount. If a $120 jacket is on sale for $80, it is still taxed because the regular price is above $110. Conversely, a $100 pair of shoes marked down to $50 is not taxed because the item itself is under the threshold.

Accessories are treated differently. A belt, hat, or scarf under $110 is exempt. Gloves and socks are exempt. Jewelry is taxed regardless of price. Handbags and wallets are taxed. The rule focuses on items you wear on your body to cover or protect it, not items you carry or decorate with.

Sports and athletic footwear follows the same rule. Running shoes under $110 are exempt; running shoes at $110 or above are taxed. Work boots, dress shoes, sandals, and slippers all follow the same threshold.

Groceries and food exemptions

The grocery exemption covers raw ingredients and uncooked foods. Frozen vegetables, canned beans, pasta, rice, flour, sugar, eggs, milk, cheese, and raw meat are all exempt. Bakery items like bread and bagels from the grocery store bakery are exempt if they are not decorated or individually wrapped for when ready consumption.

The moment food is prepared or heated for eating, tax applies. A rotisserie chicken from the grocery store deli is taxed. A sandwich made to order is taxed. Donuts from a bakery counter are taxed. Soda and other beverages are taxed, whether cold or hot. Candy is taxed. Prepared salads and deli platters are taxed.

Alcohol is taxed at the standard 6.625 percent rate. Beer, wine, and liquor all fall under regular sales tax, not a special alcohol tax.

Prescription and medical exemptions

Prescription medications issued by a pharmacist with a doctor's prescription are exempt. This includes insulin, blood pressure medication, antibiotics, and any drug requiring a prescription. The exemption applies whether you buy it at a pharmacy, grocery store pharmacy, or mail order.

Medical devices prescribed by a doctor are exempt: wheelchairs, walkers, canes, crutches, hearing aids, diabetic test strips, lancets, and similar items. Eyeglasses and contact lenses are taxed. Sunglasses are taxed. Over-the-counter pain relievers, cold medicine, antacids, and allergy medication are taxed because they do not require a prescription.

Durable medical equipment like hospital beds, oxygen equipment, and CPAP machines may be exempt if prescribed, but the rules vary by specific item. Ask the seller whether the item qualifies before purchase, or check your receipt after to see if tax was applied.

Online purchases and out-of-state sellers

If you order from an online retailer that has a warehouse, office, or other physical location in New Jersey, that seller must collect 6.625 percent sales tax on your order. Amazon, Walmart, Target, and most major retailers have New Jersey operations and collect tax on all New Jersey orders.

Sellers without a physical presence in New Jersey are required to collect tax if they meet federal economic nexus thresholds — generally $100,000 in sales or 200 transactions to New Jersey in a year. Most online sellers of any size meet this threshold and collect tax. Small sellers may not, but this is becoming rare.

If a seller does not collect tax, you are technically responsible for reporting the purchase yourself on your state tax return, though this is rarely enforced for individual consumers. The safest assumption is that any purchase shipped to New Jersey will be taxed at 6.625 percent on taxable items.

Frequently Asked Questions

Does New Jersey have local sales taxes on top of the state rate?

No. New Jersey does not allow municipalities or counties to add their own sales tax. The 6.625 percent rate is the only sales tax you pay, regardless of which city or county you are in. This is different from states like California or Texas, where local taxes can add 1 to 2 percent or more.

Is clothing always tax-free in New Jersey?

Clothing and footwear under $110 per item are tax-free. Items priced at $110 or more are fully taxed at 6.625 percent. Accessories like belts and scarves under $110 are also exempt, but jewelry and handbags are always taxed regardless of price.

Do I pay sales tax on groceries?

Raw and uncooked groceries are not taxed. Bread, milk, vegetables, meat, and canned goods have no tax. Prepared foods like deli chicken, sandwiches, and bakery items are taxed. Soda, candy, and alcohol are also taxed.

What happens if I buy something online from another state?

If the seller has a physical presence in New Jersey or meets federal sales thresholds, they must collect 6.625 percent tax on your order. Most major online retailers do this automatically. If a small seller does not collect tax, you may be responsible for reporting it yourself, though enforcement is uncommon.

Are prescription medications always tax-free?

Yes, prescription medications are exempt from sales tax. Over-the-counter drugs like aspirin, cold medicine, and vitamins are taxed. Medical devices prescribed by a doctor are also exempt, but eyeglasses and contact lenses are taxed.