New Jersey's Sales Tax Rate

New Jersey's statewide sales tax is 6.625 percent. This is the rate you pay on most purchases at checkout. Some counties add a local tax on top of the state rate, which means your total tax can be higher depending on where you shop.

The 6.625 percent figure has been in place since 2006. It applies to tangible goods — things you can touch and take home — and to certain services. Food bought at a grocery store is not taxed, but prepared food and restaurant meals are.

Key Takeaways

  • New Jersey's base sales tax is 6.625 percent, and some counties add an additional local tax that raises the total.
  • Unprepared food from grocery stores is not taxed, but restaurant meals, prepared deli items, and takeout are subject to sales tax.
  • Clothing and footwear under $110 per item are exempt from sales tax in New Jersey.
  • Your total tax rate depends on which county and municipality you are in, so the amount you pay can vary by location.
  • Services like haircuts, repairs, and professional fees are generally not taxed, but some specific services are.

County and Local Sales Tax Additions

Several New Jersey counties add a local sales tax on top of the 6.625 percent state rate. These additions range from 0.5 percent to 1.25 percent, depending on the county. Bergen County, for example, adds 1 percent, bringing the total to 7.625 percent. Hudson County adds 1.25 percent for a total of 7.875 percent.

Not all counties have a local addition. Some counties use only the state rate of 6.625 percent. To find your exact rate, you need to know which county and municipality you are in. The New Jersey Division of Taxation website lists the rates by location, or you can ask a cashier at checkout.

What Is and Isn't Taxed in New Jersey

Groceries are one of the biggest exemptions. Unprepared food you buy at a supermarket — bread, milk, vegetables, meat, cereal — is not taxed. However, prepared food is taxed. This includes deli counter items, hot food, restaurant meals, and takeout. The line is whether the food is ready to eat.

Clothing and footwear under $110 per item are exempt from sales tax. If a shirt costs $95, you pay no tax. If it costs $115, you pay tax on the full amount. This applies to regular clothing, not special items like athletic uniforms or costumes.

Prescription medications are not taxed. Over-the-counter medicines and vitamins are taxed. Medical equipment like wheelchairs and canes is generally not taxed if prescribed by a doctor.

Services That Are and Aren't Taxed

Most services are not subject to sales tax in New Jersey. Haircuts, dental work, car repairs, plumbing, and accounting services are not taxed. However, some specific services are. Telecommunications services — your phone and internet bill — are taxed. Parking fees and certain admission charges are also taxed.

If you buy a service and a product together, the tax treatment depends on what the main purpose is. For example, if a plumber charges you for labor and parts, the parts are taxed but the labor is not.

How Sales Tax Appears on Your Receipt

When you check out, the cashier or register shows the subtotal, then adds the sales tax, and gives you the total. The tax amount is listed separately so you can see exactly what you paid. Online purchases are handled differently — see the section below.

If you are buying multiple items, some taxed and some not, the register calculates tax only on the taxable items. For instance, if you buy a shirt and a loaf of bread, tax applies only to the shirt.

Sales Tax on Online and Out-of-State Purchases

If you order from an online retailer that has a physical presence in New Jersey — a warehouse, store, or office — the retailer must charge you New Jersey sales tax. Many large retailers now do this. If the retailer has no physical presence in New Jersey, they may not charge tax at checkout, though this varies by company and changes frequently.

You are not required to track these purchases and pay tax yourself on your personal tax return. The responsibility falls on the retailer. However, if you are a business owner buying inventory or materials, the rules are different and you may need to register for a reseller certificate.

Special Cases and Exemptions

Certain organizations are exempt from paying sales tax. Nonprofits, schools, and government agencies can buy items tax-free if they have the proper exemption certificate. Farmers buying equipment for agricultural use may also be exempt.

If you are a reseller — someone who buys goods to resell them — you do not pay sales tax on your purchases if you have a valid reseller certificate from the New Jersey Division of Taxation. You then collect tax from your customers instead.

Frequently Asked Questions

Do I pay sales tax on groceries in New Jersey?

Unprepared food from a grocery store is not taxed. This includes raw meat, vegetables, bread, milk, and cereal. Prepared food — deli items, hot food, and restaurant meals — is taxed at the full rate.

What is the sales tax rate in my county?

The base rate is 6.625 percent statewide. Some counties add 0.5 to 1.25 percent on top of that. The New Jersey Division of Taxation website has a rate lookup tool by municipality, or you can call your local tax assessor's office.

Are clothes taxed in New Jersey?

Clothing and footwear under $110 per item are not taxed. Items over $110 are taxed on the full price. This applies to regular clothing; special items like uniforms or costumes may have different rules.

Do I pay sales tax on services like haircuts or car repairs?

Most services are not taxed in New Jersey. Haircuts, repairs, dental work, and professional services are generally tax-free. Exceptions include telecommunications, parking, and certain admission charges.

Do online retailers charge me New Jersey sales tax?

If the retailer has a physical location in New Jersey, they must charge you sales tax. If they do not, they may or may not charge it depending on their policy. You are not responsible for tracking these purchases yourself.