New Jersey's Sales Tax Rate

New Jersey has a 6.625% sales tax on most purchases. This is the statewide rate that applies when you buy taxable goods at a store, online, or through mail order. The rate is uniform across all counties and municipalities — it does not change based on where in the state you shop.

However, not everything you buy is taxed at this rate. Some items are taxed at different rates, some are not taxed at all, and some depend on how or where you purchase them. Understanding which items fall into each category can help you predict what you will actually pay at checkout.

Key Takeaways

  • New Jersey's statewide sales tax is 6.625% and applies to most retail purchases of tangible goods.
  • Groceries, prescription medications, and most clothing under $110 per item are not subject to sales tax.
  • Restaurant meals, prepared foods, and non-prescription drugs are taxed at the full 6.625% rate.
  • Services like haircuts, repairs, and professional consultations are generally not taxed, though some exceptions exist.
  • Online purchases from out-of-state sellers are subject to New Jersey sales tax if the seller has a physical presence in the state.

What Is and Isn't Taxed in New Jersey

New Jersey exempts certain categories of purchases from sales tax entirely. Unprepared food — groceries you cook at home — is not taxed. This includes raw vegetables, meat, dairy, bread, and canned goods. Prescription medications are also exempt. If a pharmacist fills a prescription, there is no sales tax, but over-the-counter medicines and vitamins are taxed.

Clothing and footwear under $110 per item are not taxed in New Jersey. This applies to the individual item price, not the total purchase. If you buy a $105 shirt and $108 pants, neither is taxed. If you buy a $115 coat, the full price is taxed. Accessories like belts, hats, and scarves are taxed regardless of price.

Items that are taxed include restaurant meals, takeout food, prepared deli items, and any food meant to be eaten when ready. Non-prescription drugs, cosmetics, and toiletries are taxed. Services like haircuts, dry cleaning, repairs, and professional consultations are generally not taxed, though labor charges on tangible goods (like repair parts) may be handled differently depending on the situation.

How the Tax Works on Your Receipt

When you make a purchase, the seller calculates the tax on the taxable portion of your order and adds it to your subtotal. If you buy a $50 shirt (taxed) and a $40 pair of pants (not taxed because under $110), the tax is calculated only on the $50 shirt: $50 × 0.06625 = $3.31. Your total would be $93.31.

Some stores use rounding rules for tax calculations. New Jersey allows sellers to round the tax to the nearest cent, which means the actual tax you pay may be a fraction of a cent higher or lower than the exact calculation. This is standard practice and legal.

If you are making a large purchase and want to know the exact tax before checkout, you can ask the cashier or use the store's calculator. Many stores also display the tax amount separately on the receipt so you can verify it.

Sales Tax on Online and Mail Orders

Online purchases from retailers that have a physical location, warehouse, or office in New Jersey are subject to New Jersey sales tax. This includes major retailers like Amazon (which has fulfillment centers in the state), Walmart, Target, and most national chains. The tax is added at checkout based on the delivery address.

If you order from a small out-of-state seller with no New Jersey presence, you may not see sales tax charged at purchase. However, New Jersey law requires you to report and pay tax on these purchases yourself when you file your state income tax return — this is called use tax and applies to the same rate as sales tax. In practice, most individual consumers do not report use tax, but the obligation exists.

Special Situations and Exceptions

Certain purchases have their own rules. Motor vehicles are subject to sales tax, but the rate and calculation depend on whether you are buying from a dealer or a private party. Gasoline and diesel fuel are taxed, but the tax is included in the pump price you see — it is not added at checkout. Electricity and natural gas for home use are not taxed.

If you are a business buying items for resale, you can provide a resale certificate to avoid paying sales tax on your purchase. The tax is then collected when the end customer buys the item. Nonprofits and government agencies may also be exempt from sales tax on certain purchases, depending on the item and their status.

Some items sold in New Jersey are subject to additional taxes beyond the standard sales tax. For example, cigarettes and alcohol have excise taxes on top of sales tax. These are separate from the 6.625% rate and are set by state law.

How to Calculate Your Total Before Checkout

To estimate what you will pay, identify which items in your cart are taxable. Add up the taxable items, multiply by 0.06625, and round to the nearest cent. Add that amount to your full subtotal (taxable and non-taxable items combined).

Example: You buy a $30 shirt (taxed), a $25 pair of jeans (taxed), and a $20 loaf of bread (not taxed). Taxable subtotal: $55. Tax: $55 × 0.06625 = $3.64. Total: $55 + $20 + $3.64 = $78.64.

If you are unsure whether an item is taxable, ask the cashier before you check out. Most stores can tell you when ready, and it takes only a moment.

Frequently Asked Questions

Is clothing always tax-free in New Jersey?

No. Clothing and footwear under $110 per item are tax-free, but items priced at $110 or more are taxed at 6.625%. Accessories like belts, scarves, and hats are always taxed, regardless of price. The $110 threshold applies to the individual item, not your total purchase.

Do I pay sales tax on groceries?

Unprepared groceries — items you cook or prepare at home — are not taxed. This includes raw meat, vegetables, bread, milk, and canned goods. Prepared foods, takeout, restaurant meals, and items from a deli counter are taxed at 6.625%.

What about prescription versus over-the-counter medicine?

Prescription medications filled by a pharmacist are not taxed. Over-the-counter medicines, vitamins, and supplements are taxed at 6.625%. The difference is whether a pharmacist's prescription was required, not whether the item is behind the counter.

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

If the seller has no physical presence in New Jersey, sales tax is usually not charged at checkout. However, New Jersey law requires you to pay use tax on these purchases at the same 6.625% rate when you file your state tax return. Most individual consumers do not report this, but the obligation exists under state law.

Is sales tax included in the price shown, or added at checkout?

Sales tax is added at checkout in New Jersey — the price on the shelf or online does not include it. The only exception is gasoline and diesel fuel, where the tax is included in the pump price you see.