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New Jersey Sales Tax

On this page you will find handy sales and use tax information about New Jersey.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to New Jersey that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.625%
Range of Local Rates

0%
Local Rates Apply to Use Tax

N/A
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

7/1/2014
ECONOMIC NEXUS

11/1/2018 – see state notice
MARKETPLACE NEXUS

11/1/2018
Sales Tax Holidays
Annual Back to School Sales Tax Holiday

August 24-September 2, 2024

During the holiday period, retail sales of the following products are exempt from sales and use tax if they are sold to an individual purchaser for non-business use during the exemption period:

  • computers with a sales price of less than $3,000 per item;

  • school computer supplies with a sales price of less than $1,000 per item;

  • school supplies;

  • school art supplies;

  • school instructional materials; and

  • sport or recreational equipment.
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

August 21, 2017 - November 21, 2017

Go to New Jersey Amnesty Page
AMNESTY INCLUSION PERIODS

The taxpayer must file any required returns for the two quarters between January 1, 2017 and June 30, 2017. All prior periods will be considered closed.

TAX TYPES AND CONDITIONS

The amnesty program applies to out-of-state sellers with click-through agreements with businesses in New Jersey. More details.
AMNESTY BENEFITS

All penalties will be waived.

Status

Inactive

Amnesty Filing Dates

September 17, 2014 - November 17, 2014

Go to New Jersey Amnesty Page
AMNESTY INCLUSION PERIODS

Tax periods 2005 through 2013.

TAX TYPES AND CONDITIONS

All tax types.
AMNESTY BENEFITS

Reduced or eliminated penalties, no collection cost and no recovery fees.

Status

Inactive

Amnesty Filing Dates

November 15, 2018 - January 15, 2019

Go to New Jersey Amnesty Page
AMNESTY INCLUSION PERIODS

State tax liabilities for returns due on or after February 1, 2009 and prior to September 1, 2017

TAX TYPES AND CONDITIONS

Most taxes administered by the Division of Taxation, such as the corporation business tax, personal income tax, and sales and use tax. More details.
AMNESTY BENEFITS

50% of interest and all penalties waived.

Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

2 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

New Jersey Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: most food sold as grocery items, most clothing and footwear, disposable paper products for household use, prescription drugs, over-the-counter drugs

 

Entity types of exemptions: organizations for exclusively religious, charitable, scientific, testing for public safety, literary or educational purposes; organizations for the prevention of cruelty to children or animals; volunteer fire company, rescue, ambulance, first aid, or emergency company or squad; Veterans’ organizations; or an association of parents and teachers of an elementary or secondary public or private school. Government Entities, includes the State of New Jersey and its agencies, instrumentalities, public authorities, public corporations (including those formed with another state), and political subdivisions; and to U.S. Federal government agencies, departments, and instrumentalities

 

New Jersey Exemption Certificate Forms

 

New Jersey Resale Form ST-3NR Resale Certificate for Non-New Jersey Sellers: For use only by out-of-state sellers not required to be registered in New Jersey
State Links
State Tax Web Page

New Jersey Division of Taxation
Rate Look-Up Page

New Jersey Sales Tax Rate Look-Up
Registration Link

Register for New Jersey Sales Tax
History & Fun Facts
HISTORY

  • New Jersey’s Sales and Use Tax Act which imposed a sales and use tax became effective July 1, 1966. Effective October 1, 2005, New Jersey enacted legislation to conform with the Streamlined Sales and Use Tax Agreement.
  • New Jersey established Urban Enterprise Zones in several economically distressed cities in the state. To encourage economic development, qualified businesses that have obtained a UZ-2 certificate can charge sales tax at half the regular rate on sales of tangible personal property.
FUN FACTS
  • Articles of clothing and footwear are generally exempt from New Jersey sales tax. However, the exemption does not extend to fur clothing, accessories or equipment, sports or recreational equipment, or protective equipment (unless it is necessary for the daily work of the user).
  • New Jersey wants to know why you’re purchasing pumpkins. Depending upon the use, whether it’s for consuming as a food item or decorations for fall, the taxability will change.

New Jersey Enacts Voluntary Disclosure Initiative for Certain Out-of-State Sellers

The New Jersey Division of Taxation announced a voluntary disclosure program for out-of-state sellers with click-through agreements with businesses in New Jersey to run from August 21, 2017 to November 21, 2017.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

New Jersey Releases Audit Procedure Manual

The New Jersey Division of Taxation released a manual of audit procedures providing general audit guidance for the Division’s Audit Branches and taxpayers . It will be updated periodically to reflect changes.

New Jersey Enacts Legislation to Reduce State Sales Tax Rate

Effective January 1, 2018, New Jersey’s state sales and use tax rate is reduced. The enacted legislation includes transition rules for contracts that cover periods crossing the tax rate changes.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

New Jersey Adopts New Regulations on Software and Software-Related Services

New Jersey has adopted amendments and new rules to clarify the application of sales and use tax on software and software-related services.

New Jersey Enacts Tax Payment Amnesty Program

The New Jersey Division of Taxation provided businesses and individuals with unpaid tax liabilities the chance to clear their accounts.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

New Jersey Enacts Click-Through Nexus Legislation

New Jersey becomes the 14th state that has enacted legislation creating a sales and use tax click-through nexus provision.

New Jersey Discusses Taxability of Cloud Computing

New Jersey has issued a bulletin addressing the application of sales and use tax to the sale of cloud computing. Cloud computing falls under one of three categories: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure…

New Jersey Amends Rules to Conform to SST Provisions

New Jersey has amended various sales and use tax rules to conform to the provisions of the Streamlined Sales and Use Tax (SST) Agreement. The amendments include clarifying exemption certificate issuance and acceptance procedures, retention of records, adding a definition…

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Charges for Software as a Service Not Taxable in New Jersey

A company’s charges for software as a service (SaaS) are not subject to New Jersey sales and use tax as long as the software is only accessed by the user and there is no transfer or delivery of the software…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.