New Jersey's Sales Tax Rate and What It Covers

New Jersey charges a 6.625% sales tax on most goods you buy in the state. This is the statewide rate that applies at checkout when you purchase items at a store, online from a New Jersey seller, or through mail order. The rate is uniform across all counties and municipalities — there are no local add-ons like you might find in other states.

The tax applies to tangible personal property: clothing, electronics, furniture, groceries (with exceptions), household items, and most other goods. When you see a price tag, that amount does not include the sales tax — the tax is added at the register. A $100 item costs you $106.63 after tax.

Key Takeaways

  • New Jersey's sales tax rate is 6.625% statewide with no local variations, and it applies to most goods but not services.
  • Groceries, prescription medications, and medical equipment are exempt from sales tax, but prepared foods and candy are taxed.
  • Services like haircuts, repairs, and professional labor are not subject to sales tax in New Jersey.
  • Online purchases from out-of-state sellers may not have New Jersey tax added at checkout, but you may owe use tax on those items.

What Is Exempt From New Jersey Sales Tax

Several categories of items are exempt — meaning no sales tax is charged. The most common exemptions are unprepared groceries (bread, milk, vegetables, raw meat), prescription medications, and medical devices like wheelchairs or hearing aids. If you buy these items, you pay only the sticker price.

Services are also exempt. A haircut, car repair, plumbing work, or dental cleaning is not taxed. You pay the service provider's fee with no sales tax added. However, if that service includes a physical product — like a haircut plus a bottle of shampoo — the shampoo is taxed but the labor is not.

The line between taxed and exempt can be confusing for prepared foods. A sandwich from a deli counter is taxed. A loaf of bread from the shelf is not. Candy and soda are taxed. Fresh fruit is not. When in doubt at checkout, ask the cashier — they have the rules built into their register.

The Difference Between Sales Tax and Use Tax

If you buy something online from a seller outside New Jersey and no sales tax is charged at checkout, you may owe use tax on that purchase. Use tax is New Jersey's way of collecting tax on items you bring into the state or have shipped here, even if the seller did not charge it.

In practice, most people do not pay use tax on individual purchases. It is meant to be reported on your state income tax return if you made significant out-of-state purchases during the year. However, many large online retailers now collect New Jersey sales tax automatically at checkout, which means you pay the tax upfront and owe nothing more.

If you are unsure whether a purchase should have had tax added, check your receipt. If tax was not charged and the item is taxable in New Jersey, you can note it on your tax return. The threshold for reporting use tax varies, so speak with a tax professional if you made large out-of-state purchases.

Who Collects and Remits the Sales Tax

The seller — the store, online retailer, or business — collects sales tax from you at the point of sale and then sends it to the New Jersey Division of Taxation. The seller is responsible for calculating the correct amount, collecting it, and filing returns with the state, usually monthly or quarterly depending on their sales volume.

As a buyer, you do not file anything or send money to the state for sales tax. The seller handles the entire process. Your role is straightforward to pay the tax amount shown on your receipt. If a seller fails to charge tax when they should have, that is the seller's violation, not yours.

Sales Tax on Specific Purchases

Some purchases raise common questions. Clothing is taxed in New Jersey — there is no clothing exemption. A pair of shoes, a winter coat, or a t-shirt all have sales tax added. Gasoline is taxed at the pump. Alcohol — beer, wine, and liquor — is taxed at the point of sale, though it also has excise taxes that are separate from sales tax.

Digital goods like e-books, music downloads, and streaming subscriptions are generally not taxed in New Jersey, though the rules are still evolving. Restaurant meals and takeout food are taxed. Utilities like electricity and water are not subject to sales tax. If you are unsure about a specific item, the Division of Taxation website has a searchable list of taxable and exempt items.

How to Find Your Sales Tax Receipt and Understand It

Your receipt shows the subtotal (the price before tax), the sales tax amount, and the total you paid. The tax is calculated by multiplying the subtotal by 0.06625. If you bought $100 in taxable items, the tax is $6.63, making your total $106.63.

Keep receipts for large purchases, especially if you might return items. When you return a taxed item, the store refunds both the price and the tax. If you return a $100 item that cost $106.63 total, you get back the full $106.63. Some stores issue store credit instead of a refund — in that case, you can use the credit to buy other items, and sales tax applies to those new purchases as well.

Frequently Asked Questions

Do I pay sales tax on items I buy online from New Jersey stores?

Yes. If you buy from a New Jersey retailer online, they charge you 6.625% sales tax at checkout. The tax applies whether you pick up the item in-store or have it shipped to you in New Jersey.

What if I buy something online from a store in another state?

If the out-of-state seller does not charge New Jersey sales tax at checkout, you may owe use tax on that purchase. Many large retailers now collect the tax automatically, so check your receipt. If no tax was charged and the item is taxable in New Jersey, you can report it on your state income tax return.

Are groceries always tax-free?

Unprepared groceries like bread, milk, vegetables, and raw meat are tax-free. Prepared foods — deli sandwiches, rotisserie chicken, hot pizza — are taxed. Candy and soda are also taxed. When in doubt, ask the cashier before you check out.

Do I pay sales tax on a haircut or car repair?

No. Services like haircuts, repairs, and professional labor are not subject to sales tax in New Jersey. You pay only the service fee. However, if the service includes a product — like a haircut plus a bottle of shampoo — the product is taxed.

Can I get a refund of sales tax I already paid?

If you return a taxed item to the store, you get back the full amount you paid, including the tax. If you bought an item and later learned it should have been exempt, contact the store with your receipt. Refunds for tax errors are handled on a case-by-case basis.