New Jersey Sales Tax Rate and What It Covers

New Jersey's sales tax is 6.625 percent, one of the lowest in the country. It applies to most goods you buy in stores, but not to groceries, prescription medications, or clothing under $110 per item. The tax is added at checkout and goes to the state, not to individual cities or counties — New Jersey does not allow local sales tax on top of the state rate.

What counts as a "good" versus a "service" matters. You pay sales tax on a new refrigerator or a pair of shoes, but not on a haircut, a plumbing repair, or a lawyer's hourly fee. The line is not always obvious: you pay tax on a restaurant meal, but not on groceries you take home to cook.

Key Takeaways

  • New Jersey's sales tax rate is 6.625 percent statewide, with no additional local tax added on top.
  • Groceries, prescription drugs, and clothing items under $110 are exempt from sales tax.
  • Sales tax applies to most goods but not to services like repairs, haircuts, or professional fees.
  • Online purchases from out-of-state sellers may or may not include New Jersey sales tax depending on the seller's registration status.
  • Certain items like diapers, feminine hygiene products, and mobility aids for people with disabilities are tax-exempt.

Items That Are Exempt From Sales Tax

Beyond groceries and prescription drugs, New Jersey exempts several categories. Clothing and footwear under $110 per item are tax-free — this means a $109 shirt is exempt, but a $111 shirt is taxed. The exemption applies to the item itself, not the total purchase, so you could buy ten $100 jackets tax-free.

Diapers, feminine hygiene products, and incontinence supplies are exempt. Mobility aids for people with disabilities — canes, walkers, wheelchairs, and hearing aids — are also tax-free. Prescription eyeglasses and contact lenses are exempt, but non-prescription sunglasses are not.

Items sold for resale by a business do not carry sales tax if the seller has a resale certificate. A restaurant buying flour from a supplier does not pay sales tax on it, because the flour will be resold as part of a meal (which is taxed). A homeowner buying the same flour at a grocery store pays no tax because groceries are exempt.

How Sales Tax Is Calculated at Checkout

The 6.625 percent rate is applied to the subtotal of taxable items. If you buy a $50 shirt and a $30 pair of shoes, both taxable, the subtotal is $80. The tax is $80 × 0.06625 = $5.30, for a total of $85.30. If you buy a $50 shirt (taxable) and $30 in groceries (exempt), the tax applies only to the $50, giving you $50 × 0.06625 = $3.31 in tax.

The cashier's register or the online checkout system calculates this automatically. You do not need to do the math yourself. The tax shown at checkout is what you owe; there are no additional taxes added later.

Sales Tax on Online and Out-of-State Purchases

If you order from an online retailer that has a physical location or employees in New Jersey, they must charge you New Jersey sales tax. If the seller has no presence in the state, they may not charge tax — but New Jersey law says you owe "use tax" on that purchase, which is the same rate as sales tax. In practice, most people do not pay use tax on individual purchases, and the state does not pursue individuals for small amounts.

Large online retailers like Amazon, Walmart, and Target charge New Jersey sales tax on orders shipped to New Jersey addresses because they have warehouses or operations in the state. Smaller sellers without a New Jersey presence may not charge tax. If you are unsure, check the checkout page before you complete the order.

Who Collects and Where the Money Goes

The business selling you the item collects the sales tax and sends it to the New Jersey Division of Taxation. Retailers file sales tax returns monthly or quarterly depending on their size. The state uses this money for general operating expenses — schools, roads, public safety, and other services.

You do not file anything related to sales tax as a consumer. The seller handles all reporting. Your receipt shows the tax amount for your records, but you do not claim it on your personal tax return.

Special Sales Tax Rules and Situations

New Jersey has a "back-to-school" sales tax holiday in August, when clothing and shoes under $110 and school supplies are exempt for a set period. The exact dates change each year, so check the Division of Taxation website if you are shopping during late August.

Certain nonprofits and government agencies do not pay sales tax on purchases. A school district buying desks or a registered charity buying office supplies can provide a tax-exempt certificate to avoid the tax. This does not explore to individual shoppers.

If you buy something and later return it, the tax is refunded along with the purchase price. If you exchange an item for another of equal value, no new tax is charged. If you exchange for something more expensive, you pay tax only on the difference.

Frequently Asked Questions

Do I pay sales tax on groceries in New Jersey?

No. Most food items for home consumption are exempt, including bread, milk, vegetables, meat, and canned goods. Hot prepared foods from a deli counter or restaurant are taxed. The rule is whether the food is ready to eat or requires preparation at home.

Are clothes always tax-free in New Jersey?

Clothing and footwear under $110 per item are tax-free. A single item priced at $110 or more is taxed. Accessories like belts, hats, and gloves under $110 are also exempt. Swimwear and athletic wear count as clothing for this purpose.

What happens if I buy something online from a seller outside New Jersey?

If the seller has no physical presence in New Jersey, they may not charge sales tax. You technically owe use tax on the purchase, but this is rarely enforced for individual consumers. Large retailers with warehouses in New Jersey will charge tax regardless of where they are headquartered.

Is sales tax added to restaurant meals?

Yes. Restaurant meals, takeout food, and prepared foods from delis are all subject to the 6.625 percent sales tax. Groceries you buy to cook at home are not taxed, but anything sold ready to eat is taxed.

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

If you return an item within the store's return window, the tax is refunded along with the purchase price. You cannot claim a refund for tax on items you keep. Tourists and out-of-state visitors do not receive special sales tax refunds in New Jersey.