Items Exempt From New Jersey Sales Tax

New Jersey does not charge sales tax on groceries, prescription medications, medical equipment, and most clothing under $110 per item. The state also exempts newspapers, magazines, and certain services like haircuts and dry cleaning from the 6.625% sales tax rate. However, the rules have specific boundaries — a $110 shirt is tax-free, but a $111 shirt is not, and prepared foods are taxed even though raw groceries are not.

Understanding which items are exempt matters because it affects what you actually pay at checkout. Some exemptions are straightforward; others depend on how the item is classified or what condition it is in when you buy it.

Key Takeaways

  • Unprepared groceries, including meat, produce, dairy, and bread, are not taxed, but hot food, prepared meals, and food eaten on premises are taxed at the full rate.
  • Clothing and footwear under $110 per item are exempt, but items over that threshold are taxed on the full purchase price.
  • Prescription medications and most medical devices prescribed by a doctor are exempt, but over-the-counter vitamins, supplements, and cosmetics are taxed.
  • Services like haircuts, dry cleaning, and laundry are not taxed, but the materials used in those services may be taxed separately if you buy them yourself.
  • Newspapers and magazines sold as single copies or subscriptions are exempt, but books sold as merchandise are taxed.

Groceries and Food: What Is and Isn't Taxed

Raw, unprepared food is exempt from sales tax in New Jersey. This includes fresh produce, meat, poultry, fish, dairy products, eggs, bread, cereal, canned goods, frozen vegetables, and pantry staples like flour, sugar, and cooking oil. The exemption applies whether you buy one apple or a full cart of groceries.

Prepared and ready-to-eat foods are taxed. This means hot deli chicken, rotisserie items, prepared salads, sandwiches made at the store, pizza, baked goods from the bakery section (if they are still warm or sold as prepared items), and anything you eat on the premises is subject to the full 6.625% tax. Cold prepared foods — like a pre-made sandwich from a refrigerated case — are also taxed.

Beverages fall into two categories. Milk and milk-based drinks are exempt. Soda, juice, coffee, tea, and energy drinks are taxed. Alcohol is taxed separately under excise tax rules, not sales tax, so it does not follow the same exemption pattern.

Clothing and Footwear Under $110

New Jersey exempts clothing and footwear priced under $110 per item. A pair of jeans for $89 is tax-free. A winter coat for $109.99 is tax-free. A coat for $110.01 is taxed on the full amount. The threshold applies to each individual item, not to your total purchase.

The exemption covers shirts, pants, dresses, jackets, socks, underwear, hats, gloves, scarves, belts, and shoes. It also covers accessories that are worn on the body, such as ties and suspenders. Handbags, wallets, and backpacks are not clothing and are taxed regardless of price.

Items that are not clothing — such as sports equipment, protective gear worn for work (like hard hats or safety vests), and costumes — are taxed even if they cost less than $110. The item must be something you wear as everyday clothing to may have access to for the exemption.

Prescription Medications and Medical Equipment

Prescription medications are not taxed in New Jersey. This applies to any drug dispensed by a licensed pharmacist with a valid prescription from a doctor, dentist, or other licensed prescriber. Over-the-counter medications — including pain relievers, cold medicine, allergy medicine, antacids, and laxatives — are taxed at the full rate.

Medical equipment prescribed by a doctor is also exempt. This includes items like wheelchairs, crutches, walkers, hearing aids, diabetic testing supplies, and oxygen equipment. The equipment must be prescribed or recommended by a licensed healthcare provider. Items you buy on your own for general wellness — such as vitamins, supplements, heating pads, and blood pressure monitors — are taxed.

Cosmetics and personal care items are always taxed, even if they are used for medical reasons. Sunscreen, lip balm, moisturizer, and acne treatments are taxed. The distinction is whether the item requires a prescription and is used to treat a diagnosed medical condition.

Services That Are Not Taxed

Services are generally not subject to sales tax in New Jersey, even though the products used in those services may be. Haircuts, hair coloring, and salon services are not taxed. Dry cleaning, laundry, and pressing services are not taxed. Tailoring and alterations are not taxed.

Repair services — such as shoe repair, watch repair, and appliance repair — are not taxed. Labor charges for installation, assembly, or setup are not taxed. However, if you buy the materials separately (like fabric, thread, or cleaning supplies), those materials are taxed when you purchase them.

Some services that might seem like they should be exempt are actually taxed. Pest control, lawn care, and cleaning services are taxed. Parking fees and tolls are taxed. The rule is narrow: personal grooming and garment care services are exempt, but most other services are not.

Newspapers, Magazines, and Printed Materials

Newspapers and magazines are not taxed in New Jersey, whether you buy a single copy or a subscription. This applies to daily newspapers, weekly magazines, trade publications, and specialty publications. The exemption covers the physical copy and any subscription fees you pay.

Books sold as merchandise — including textbooks, novels, reference books, and children's books — are taxed. The distinction is that newspapers and magazines are periodicals (published on a regular schedule), while books are not. A cookbook is a book and is taxed. A cooking magazine is a magazine and is not taxed.

Digital subscriptions to newspapers and magazines are also not taxed. However, digital books and e-books are taxed. The rule follows the same logic: periodicals are exempt, but books are not, regardless of format.

Items That Are Always Taxed

Certain categories are always subject to sales tax in New Jersey. Alcohol and tobacco products are taxed (and also subject to additional excise taxes). Gasoline and diesel fuel are taxed. Household supplies, cleaning products, and toiletries are taxed. Electronics, appliances, and furniture are taxed.

Pet food and supplies are taxed. Toys and games are taxed. Sports equipment and exercise gear are taxed. Office supplies and school supplies are taxed. The general rule is that anything not specifically exempted is taxed at the standard rate of 6.625%, though some counties add a local tax on top of that.

Frequently Asked Questions

Is baby formula taxed in New Jersey?

No. Baby formula is considered a grocery item and is exempt from sales tax. This applies to all types of infant formula, whether powdered, liquid concentrate, or ready-to-feed. Diapers and other baby care products are taxed.

What about clothing for children — is there a different rule?

No. The $110 per-item threshold applies to children's clothing the same way it applies to adult clothing. A child's shirt under $110 is tax-free; one over $110 is taxed. There is no separate exemption for children.

If I buy a shirt for $109 and pants for $109, do I pay tax on the total?

No. Each item is evaluated separately. Both items are under $110, so neither is taxed. You pay tax only on items that individually exceed the $110 threshold.

Are vitamins and supplements taxed?

Yes. Vitamins, minerals, and dietary supplements are taxed, even if you take them for a medical reason. Only prescription medications are exempt. If your doctor prescribes a specific supplement as part of your treatment, it is still taxed unless it is dispensed by a pharmacist as a prescription item.

Is a haircut taxed if I get it at a salon versus a barbershop?

No. Haircuts are not taxed at either location. The exemption covers all personal grooming services, including haircuts, shaves, hair coloring, and styling, regardless of where you get the service.