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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 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.

Vacutainers Taxable in New Jersey

New Jersey sales and use tax regulations disqualified a laboratory’s purchases of vacutainers (sealed test tubes used to collect blood or other specimen samples) from exemption because they did not qualify as “nonreturnable containers” or “other wrapping supplies” as indicated…

New Jersey Notice on Taxability of Storage Space Updated

Charges for furnishing of space for storage of tangible personal property by a person engaged in the business of furnishing space became taxable effective October 1, 2006. Additionally, charges for the service of storing all tangible personal property not held…

New Jersey Provides Revised Information on Taxability of Information Services

As a revision to its notice regarding the taxability of information services, which became taxable effective October 1, 2006, the state modified its position with respect to businesses operating as an application service provider (ASP) which provides access to software…

New Jersey Taxes Information Services

Effective October 1, 2006, information services will be subject to sales and use tax in New Jersey. An information service is defined as service which provides information of any kind other than “personal or individual information which is not incorporated…

Taxability of Custom Software in New Jersey

In New Jersey, software which is created, written, and designed for a specific customer is considered “custom” software. As such, the purchase of custom software is considered a non-taxable professional service and, therefore, not subject to sales tax like pre-written…

New Jersey Delivery Charges Subject to Sales Tax

Effective October 1, 2006, delivery charges are subject to sales and use tax, regardless of whether they are separately stated on the invoice or included within the sales price. Prior to this law change, separately-stated delivery charges were not taxable.…

New Jersey Imposes Gross Receipts Tax on Fur Clothing

Effective July 1, 2006, a 6% gross receipts tax is imposed on all persons making retail sales of fur clothing within New Jersey. Sales subject to the Fur Clothing Gross Receipts Tax consists of all clothing and accessories that are…

New Jersey Sales Tax Rate To Increase

Effective July 15, 2006, the State of New Jersey will increase its sales tax rate by one-percent, from 6% to 7%, as a result of recent budget negotiations. It is expected that half the revenue realized from this increase will…

New Jersey Cigarette Sales Act Enacted.

The Cigarette Sales Act was signed into law as Chapter 85, Pamphlet Law 2005 on May 4, 2005. It requires that all cigarette sales be made “face-to-face” unless the seller has (1) met the terms of the federal Jenkins Act,…

New Jersey Discusses Fur Clothing and Footwear Exemption

In a press release, the New Jersey Department of Taxation discussed the newly enacted fur clothing and footwear exemption. These items were made exempt as part of the ongoing effort to conform to the provisions of the Streamlined Sales Tax…

New Jersey Conforms to Streamlined Agreement, Gains Associate Member Status.

On July 2, 2005, the New Jersey Division of Taxation approved Chapter 126, Assembly Bill 3473, which will place New Jersey in conformance with the Streamlined Sales and Use Tax Agreement on October 1, 2005, when the bill takes effect.…

New Jersey Releases Notice on VOIP Taxability.

The New Jersey Division of Taxation ruled that fees for Voice Over Internet Protocol (VOIP) services that were charged to in-state customer service addresses were subject to sales tax. The state’s tax code imposes a tax on receipts from every…

Zero-Emission Motor Vehicle leases exempt from New Jersey sales and use tax.

Effective May 1, 2004, sales and leases of vehicles certified as zero-emission vehicles pursuant to the California Air Resources Board are exempt from New Jersey’s sales and use taxes. The exemption does not apply to partial zero-emission vehicles, such as…

Cosmetic surgery subject to New Jersey tax.

As of September 1, 2004, the 6% gross receipts tax will be imposed on certain cosmetic medical procedures intended to improve someone’s appearance, but not to prevent or treat a medical condition. Specific procedures include, but are not limited to,…

New Jersey extends and reduces fee.

New Jersey imposes an Outdoor Advertising Fee on the gross amounts collected by a seller for space on a billboard or other outdoor advertising signage. The fee will remain at 6% until July 1, 2006, when the fee is reduced…

New Jersey revised outdoor advertising fee.

Gross amounts collected by retail sellers of billboard advertising space are subject to a 6% Outdoor Advertising Fee as of July 1, 2004. Taxpayers should report and remit the Fee quarterly on Form OA-100 and may also include exemptions from…

New Jersey offers exemptions for relocating businesses.

In an effort to encourage business growth, New Jersey is offering various tax credits and exemptions to businesses expanding their operations in the state. Specifically these tax benefits will apply to corporate headquarters expansions and to corporations involved in the…

Dental whitening products sold by dentists subject to New Jersey sales tax.

Because dental whitening gel is considered tangible personal property, dentists who sell the gel to their patients should collect and remit sales tax. Dentists should provide a Resale Certificate, Form ST-3, to their vendors when purchasing the whitening gel for…

New Jersey sale exempt as bulk sale.

A company’s transfer of their business assets was exempt from sales and use tax. The bulk sale or transfer of any part of the whole of a transferee’s business’s assets, other than in the ordinary course of business, is deemed…

Launderer’s chemicals taxable in New Jersey.

A linen supply company that provides laundry services to many hotels, casinos, restaurants, and nursing homes in Atlantic City contested that the chemicals and detergents they use in providing their services should be exempt.

New Jersey food and cleaning services.

Although a company acted as an agent for two hospitals, for the purchase of cleaning supplies and paper goods, it did not qualify for a derivative exemption because the relationships it had with the hospitals were not master-servant in nature.…

New Jersey businesses allowed to advertise taxes paid.

The New Jersey Division of Taxation has recently implemented legislation allowing businesses to advertise a vendor’s payment of New Jersey sales tax for the customer in particular transactions. The advertisement must indicate that the vendor paid the tax for the…

New Jersey direct payment program ends.

Natural Gas customers in New Jersey will no longer be able to participate in the Direct Payment Permit Program, as it expires December 31, 2002. Beginning January 1, 2003, all retail sales of natural gas delivered in New Jersey must…