New Jersey sales tax: Rates, rules and compliance for your business

Published Friday 7 November 2025

Table of contents

• New Jersey sales tax rate
• New Jersey sales tax rates by county
• Sales tax exemptions in New Jersey
• How to register for New Jersey sales tax permits
• Online sales tax rules for New Jersey businesses
• Use tax vs. sales tax in New Jersey
• Simplify your New Jersey sales tax management
• FAQs on New Jersey sales tax

Key takeaways

• Register for a New Jersey Sales Tax Certificate of Authority before selling any taxable goods or services in the state, as this permit is legally required to collect sales tax from customers.

• Apply the standard 6.625% sales tax rate statewide, but check if your business qualifies for Urban Enterprise Zone (UEZ) certification to charge the reduced 3.3125% rate in eligible areas like Camden, Trenton, and Newark.

• Collect New Jersey sales tax on online sales if you exceed economic nexus thresholds of either $100,000 in revenue or 200+ transactions to New Jersey customers during the current or prior calendar year.

• Maintain proper documentation for tax-exempt sales by requiring valid ST-5 certificates from nonprofits and keeping detailed records for at least three years to ensure audit compliance.

New Jersey sales tax rate

As of April 2025, New Jersey's state sales tax rate is 6.625% statewide. This uniform rate applies across all counties and cities.

Urban Enterprise Zones (UEZs) let eligible businesses charge half the state sales tax, with a reduced rate of 3.3125%. These zones encourage business growth in urban areas by offering tax incentives.

Key UEZ locations include:

• Camden: 3.3125% for qualifying businesses
• Trenton: 3.3125% for qualifying businesses
• Newark: 3.3125% for qualifying businesses

If you buy a taxable item for $100 in a standard zone, you pay $6.63 in sales tax. If you buy the same item from a business in a UEZ, you pay $3.31.

How to calculate New Jersey sales tax

New Jersey sales tax calculation determines the exact tax amount to charge customers on taxable purchases.

Calculation steps:

1. Identify purchase price: Note the item cost (include shipping if applicable)
2. Apply tax rate: Multiply by 0.06625 (standard rate) or 0.033125 (UEZ rate)
3. Add to total: Purchase price + sales tax = final amount

Example: $250 item × 0.06625 = $16.56 sales taxTotal charge: $250 + $16.56 = $266.56

New Jersey sales tax is a uniform rate across the state, but some businesses in UEZ areas can charge reduced rates. Use a New Jersey sales tax calculator to check rates for luxury items, UEZs, and other special cases.

Need help calculating sales tax in New Jersey?

Use Avalara's New Jersey sales tax calculator to find accurate rates by location and stay compliant with state requirements.

New Jersey sales tax rates by county

New Jersey county sales tax rates are uniform at 6.625%. New Jersey does not allow local sales tax, so this rate applies in every county.

Some categories have exceptions to the standard rate:

Atlantic City and Cape May County charge extra taxes on some luxury items and services.

UEZ reduced rates: Certified businesses in these counties charge 3.3125%:

• Salem County
• Essex County
• Camden County

Here are sales tax rates for some of the most popular counties in New Jersey:

Check if your business is in a UEZ by searching the New Jersey Urban Enterprise Zone Authority. If you qualify, apply for certification to charge the lower UEZ sales tax rate.

Sales tax exemptions in New Jersey

New Jersey sales tax exemptions cover certain goods and services that are not taxed. Knowing these exemptions helps you avoid overpaying and stay compliant.

Major exemption categories:

• Clothing and footwear: Everyday apparel such as shirts, pants, dresses, and shoes are tax-exempt. Accessories, including jewelry, handbags, and sports equipment, are taxable.
• Unprepared food: Groceries such as fruits, vegetables, meats, and dairy products are not taxed. Prepared foods from restaurants or delis are taxable.
• Medical items: Prescription medications and some medical supplies are exempt if prescribed by a licensed practitioner.

Exempt organizations

Organizational exemptions let nonprofits, government agencies, and schools buy items without paying sales tax. You must provide the right documentation to qualify.

Qualification steps:

1. Register for exemption: Apply to the New Jersey Division of Taxation for a certificate of exemption
2. Present documentation: Show valid ST-5 certificate at time of purchase
3. Maintain records: Keep certificates and transaction records for auditing purposes

Only state-recognized organizations with valid ST-5 certificates qualify for tax-exempt purchases.

Proper documentation

Nonprofits in New Jersey must keep the right documents to prove their tax-exempt status. Proper documentation should include:

• Completed and signed exemption certificates, such as ST-3, ST-4, or ST-5
• Records of each exempt sale, including dates, items sold, and buyer details
• Documents kept for at least three years in case of a state audit

If a nonprofit does not provide a valid exemption certificate at the time of sale, you must charge sales tax. You are responsible for keeping accurate records.

How to register for New Jersey sales tax permits

If you sell taxable goods or services in New Jersey, you must register with the state to collect sales tax. You need a Certificate of Authority to charge sales tax to your customers.

You can register your business online through the New Jersey Division of Revenue and Enterprise Services. After you register, the state will send your tax filing schedule and compliance details. You need this permit to operate legally in New Jersey.

Online sales tax rules for New Jersey businesses

Online shopping is more common than ever. If you sell to New Jersey customers from another state, you may need to collect New Jersey sales tax. This rule started after the Wayfair Supreme Court decision.

Economic nexus in New Jersey

Economic nexus in New Jersey means out-of-state sellers must collect and send sales tax if they pass certain sales thresholds. This rule applies across all counties because New Jersey uses a single statewide rate.

Nexus thresholds (either trigger requirement):

• Revenue threshold: $100,000+ in New Jersey sales revenue
• Transaction threshold:200 or more separate transactions to New Jersey customers during the current or prior calendar year

You only need to follow one set of rules for the whole state.

Check with the NJ Division of Taxation for additional information and what applies to online sales in the state.

Marketplace facilitators

Platforms like Amazon, Etsy, and eBay are marketplace facilitators. They collect sales tax for all marketplace transactions on behalf of third-party sellers.

If you sell through your own website or direct channels, you must handle New Jersey sales tax yourself. If you use a platform like Etsy or eBay, the platform collects sales tax for you.

If you sell remotely, check the New Jersey Division of Taxation remote seller FAQs and use a New Jersey state tax calculator to estimate your taxes.

Use tax vs. sales tax in New Jersey

Use tax and sales tax both make sure New Jersey collects tax on taxable purchases, but they apply in different situations.

Sales tax: Collected by sellers on purchases made within New Jersey at the time of sale.

Use tax: Paid directly by buyers when sales tax wasn't collected but should have been.

When use tax applies:

• Out-of-state purchases: Items shipped to New Jersey without tax charged
• Online orders: Purchases where no sales tax was collected
• Lower-rate states: Purchases from states with tax rates below New Jersey's 6.625%

If you buy taxable goods in New Jersey and are not charged sales tax, you must report and pay use tax.

Simplify your New Jersey sales tax management

Sales tax compliance can be simple. The right tools automate calculations, track exemptions, and help you report accurately.

handles New Jersey sales tax automatically. You can calculate rates, track exempt transactions, and generate reports to stay compliant. Let Xero handle the tax details so you can focus on your business.

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FAQs about New Jersey sales tax

Here are common questions and answers small business owners might have about sales tax in New Jersey.

Do I need a sales tax permit to sell in New Jersey?

Yes. All businesses selling taxable goods or services in New Jersey must obtain a Sales Tax Certificate of Authority before collecting tax. Register online through the New Jersey Division of Revenue and Enterprise Services.

Are digital products taxable in New Jersey?

Yes. Most digital items, such as eBooks, movies, music downloads, and prewritten software, are specified digital products and are taxed in New Jersey if delivered electronically.

Is shipping taxable in New Jersey?

Shipping charges are taxable if they are part of the sale and not listed separately. If the shipping cost is separate or the item is tax-exempt, the shipping fee is also exempt.

Do freelancers or service-based businesses need to charge sales tax?

Not usually. Most professional and personal services are not taxed in New Jersey. Services like repairing, installing, or maintaining tangible property, such as auto repair, are taxable.

How often do I need to file sales tax returns?

Filing frequency depends on how much sales tax you collect each month. New Jersey sets your filing schedule based on your estimated annual taxes.

Filing schedules:

• Monthly filing: Businesses collecting $500+ per month in sales tax
• Quarterly filing: Businesses collecting under $500 per month in sales tax

The Division of Taxation will tell you your filing schedule after you register.