New Jersey's Sales Tax Rate

New Jersey charges a 6.625% sales tax on most retail purchases. This is the statewide rate that applies to goods and services across the state. Unlike some states, New Jersey does not allow cities or counties to add their own local sales tax on top of the state rate — the 6.625% is what you pay everywhere in the state.

The rate has been 6.625% since 2006. It applies when you buy clothing, electronics, furniture, groceries (with some exceptions), and most other items at checkout. Some purchases are taxed at a lower rate or not taxed at all, depending on what you are buying and why.

Key Takeaways

  • New Jersey's statewide sales tax is 6.625%, and there are no additional local taxes added on top of this rate.
  • Clothing and footwear under $110 per item are not subject to sales tax in New Jersey.
  • Groceries and prescription medications are generally not taxed, but prepared foods and non-prescription drugs are.
  • Services like haircuts, repairs, and professional fees are usually not taxed unless they are bundled with taxable goods.

What Is and Isn't Taxed in New Jersey

Clothing and footwear are largely exempt from sales tax in New Jersey, but only if each item costs less than $110. A pair of shoes for $85 is not taxed. A winter coat for $200 is taxed on the full amount. This applies to accessories like belts, hats, and gloves as long as they stay under the $110 threshold per item.

Groceries intended for home consumption are not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared foods — items from a deli counter, bakery items sold by weight, or anything meant to be eaten right away — are taxed at the full 6.625% rate. A sandwich from a grocery store deli is taxed; a loaf of bread is not.

Prescription medications are not taxed. Over-the-counter drugs like pain relievers, cold medicine, and vitamins are taxed. Medical devices like glucose monitors and hearing aids are not taxed if they have a prescription or medical documentation.

Services and Labor

Most services are not subject to sales tax in New Jersey. A haircut, dental work, car repair, plumbing, or accounting service is not taxed. However, if a service includes the sale of tangible goods — such as a salon that sells you shampoo along with a haircut, or a repair shop that charges you for parts and labor together — the goods portion may be taxed.

Labor charges for installation, assembly, or repair are generally not taxed on their own. If you hire someone to install flooring, you pay sales tax on the flooring materials but not on the labor. Some exceptions exist for specific trades, so check with the vendor if you are unsure whether labor will be taxed.

Online and Out-of-State Purchases

If you buy something online from a retailer that has a physical location or warehouse in New Jersey, sales tax is added at checkout. If you buy from an out-of-state retailer with no New Jersey presence, tax may not be charged at the time of purchase. However, New Jersey law requires you to pay a "use tax" on those purchases — essentially the same 6.625% rate — when you file your state income tax return.

In practice, most large online retailers now collect New Jersey sales tax regardless of where they are based, so you will see the tax applied at checkout. Smaller retailers may not, and the burden falls on you to report and pay the use tax yourself.

Digital Products and Streaming

Digital products like e-books, downloaded music, and streaming subscriptions are generally not taxed in New Jersey. Software licenses and digital downloads fall into this category. However, if you buy a physical product — a CD, a printed book, or a DVD — it is taxed.

Streaming services like Netflix, Spotify, and gaming subscriptions are not subject to sales tax. This applies whether you are a New Jersey resident or not, as long as the service is digital-only.

Tax-Free Holidays and Special Periods

New Jersey does not have an annual sales tax holiday for back-to-school shopping or other seasonal events. The state occasionally runs temporary tax exemptions for specific items or circumstances, but these are not regular or predictable. Check the New Jersey Division of Taxation website or contact a local tax office if you think a current exemption might explore to your purchase.

Some nonprofits and government agencies are exempt from sales tax when they make purchases for their operations, but this does not affect what you pay as a consumer.

How Sales Tax Appears on Your Receipt

When you check out at a store, the sales tax is calculated on the taxable items only. If you buy a $50 shirt (under $110, so not taxed), a $30 pair of shoes (under $110, so not taxed), and a $20 electronics item (taxed), the tax is applied only to the $20. Your receipt will show the subtotal, the tax amount, and the total due.

Online receipts work the same way. The tax line will show 6.625% applied to taxable items. If you are unsure why something was or was not taxed, the receipt should break down which items were subject to tax.

Frequently Asked Questions

Do I pay sales tax on groceries in New Jersey?

Most groceries are not taxed, including fresh produce, meat, dairy, and packaged foods meant to be prepared at home. Prepared foods from a deli, bakery items sold by weight, and hot foods are taxed. If you are unsure whether a specific item is taxed, ask the cashier before checkout.

Is clothing always tax-free in New Jersey?

Clothing and footwear under $110 per item are tax-free. Items over $110 are taxed on the full price. This applies to each piece individually, so a $120 jacket is taxed, but a $100 jacket and a $50 pair of pants are both tax-free.

Do I owe use tax on items I buy online from out-of-state sellers?

Yes, technically you owe use tax on out-of-state purchases at the same 6.625% rate. However, most large retailers now collect this tax at checkout. For smaller sellers that do not, you are required to report and pay the tax when you file your state income tax return, though enforcement is limited.

Are haircuts and salon services taxed in New Jersey?

No, haircuts and most salon services are not taxed. If the salon sells you a product like shampoo or styling cream along with the service, the product portion may be taxed, but the service itself is not.

What is the difference between sales tax and use tax?

Sales tax is charged when you buy something in New Jersey. Use tax is charged on items you buy elsewhere and bring into New Jersey for use. Both are 6.625%. Most people pay sales tax at checkout and never deal with use tax directly, but it exists to prevent people from avoiding tax by shopping out of state.