New Jersey Sales Tax Guide 2025: Policies, Rates, Compliance

This New Jersey sales tax Guide offers a comprehensive look at the state’s tax laws, covering rates, exemptions, and filing processes. You can rely on this guide to help your business stay compliant with New Jersey's tax regulations.

Sales Tax in New Jersey

Sales tax in New Jersey was established in 1966 to support state revenue. Governed by New Jersey sales tax law, the Division of Taxation oversees compliance for both sales and use tax on goods and services, ensuring businesses follow the rules effectively.

New Jersey Sales Tax Rate

Jurisdiction	Sales tax rate
State tax	6.625%
Local tax	0.0%
Combined Tax	6.625%

Learn more and check out the city-based tax rates in New Jersey.

New Jersey Sales Tax Calculator

A New Jersey sales tax calculator helps retailers determine the total tax owed on taxable items by applying the state’s 6.625% sales tax rate, or reduced rates in Urban Enterprise Zones (3.5%) if applicable. This tool ensures accurate calculations, compliance with New Jersey sales tax law, and proper collection from customers.

Scenario: A retailer sells an item priced at $200 in an area where the standard 6.625% sales tax applies.

1. Determine the Tax Rate:
   1. The state sales tax rate is 6.625%.
2. Calculate the Sales Tax: 2. $200 × 6.625% = $13.25
3. Determine the Total Price Charged to the Customer: 3. $200 (item price) + $13.25 (sales tax) = $213.25

Urban Enterprise Zone Example: If the same sale occurs in an Urban Enterprise Zone with a 3.5% sales tax rate, the calculation is as follows:

• $200 × 3.5% = $7.00
• $200 + $7.00 = $207.00

By using a sales tax calculator, retailers can ensure they collect the correct amount of tax and stay compliant with New Jersey sales and use tax regulations.

FAQs on Sales Tax

What is the sales tax rate for New Jersey?

The sales tax rate in New Jersey is 6.625%, with some Urban Enterprise Zones offering reduced rates.

Is NJ sales tax 7%?

No, the NJ sales tax rate was reduced from 7% to 6.625% in 2018.

Where is 3.5 sales tax in NJ?

The 3.5% sales tax rate applies to certain Urban Enterprise Zones in New Jersey for eligible businesses.

What is New Jersey sales tax for shopping?

The New Jersey sales tax rate for shopping is generally 6.625%, with exemptions for items like unprepared food, clothing, and prescription medications.

How do I calculate NJ sales tax?

To calculate NJ sales tax, multiply the item's price by the state’s 6.625% sales tax rate or the applicable reduced rate, and add the result to the original price. Please check the "New Jersey Sales Tax Calculator" section above for a detailed example.

Sales Tax Nexus in New Jersey​

Type of Nexus	Threshold
Physical presence	Any physical presence
Economic nexus	$100,000 in gross sales or 200 transactions
Marketplace nexus	$100,000 in gross sales or 200 transactions

FAQs on Sales Tax Nexus

What is the sales tax on Nexus in New Jersey?

Businesses with nexus in New Jersey must collect and remit the state’s 6.625% sales tax or applicable local rates on taxable transactions.

What does nexus mean sales tax New Jersey?

In New Jersey, nexus refers to a business's physical or economic presence in the state, requiring it to collect and remit sales tax.

What is the Nexus threshold for sales tax in New Jersey?

The nexus threshold for New Jersey is $100,000 in gross revenue or 200 or more transactions with in-state customers annually.

What is the sales tax on Nexus in New Jersey? Businesses with nexus in New Jersey must collect and remit the state’s 6.625% sales tax or applicable local rates on taxable transactions.

What does nexus mean sales tax New Jersey? In New Jersey, nexus refers to a business's physical or economic presence in the state, requiring it to collect and remit sales tax.

What is the Nexus threshold for sales tax in New Jersey? The nexus threshold for New Jersey is $100,000 in gross revenue or 200 or more transactions with in-state customers annually.

New Jersey Sales Tax Exemptions​

New Jersey sales tax exemptions provide relief to businesses and individuals by excluding certain goods and services from taxable transactions. Common exemptions include tangible personal property purchased for resale, manufacturing equipment, and specific items like unprepared food and prescription medications.

Businesses must also monitor use tax obligations when they use taxable goods or services in-state without sales tax being collected, especially for remote sellers operating in New Jersey. These exemptions, combined with considerations like property taxes and corporate income tax, help reduce overall tax burdens and encourage economic activity within the state.

FAQs on Sales Tax Exemptions

What’s a New Jersey sales tax exemption certificate?

A New Jersey sales tax exemption certificate is a document that allows eligible buyers to purchase specific goods or services without paying sales tax.

What items are exempt from sales tax in New Jersey?

Items such as unprepared food, prescription medications, medical devices, and most clothing are exempt from sales tax in New Jersey. Check out a detailed list of what items are exempt from sales tax in New Jersey.

Does New Jersey have sales tax on clothing?

No, most clothing in New Jersey is exempt from sales tax, except for certain accessories and specialized items. Learn more about New Jersey clothing sales tax.

What services are exempt from sales tax in NJ?

Exempt services in New Jersey include medical, educational, and legal services, as well as some professional services that do not involve tangible personal property.

How to become tax exempt in NJ?

To become tax exempt in New Jersey, businesses or organizations must apply for a Certificate of Authority with the New Jersey Division of Taxation and provide documentation proving their exempt status.

What's the New Jersey Sales Tax Registration Process?

Here's a step-by-step guide to navigate the sales tax registration process in New York.

1. Determine Nexus Obligations. Assess whether your business has sales tax nexus in New Jersey, either through physical presence (e.g., office, employees, or inventory) or by exceeding the economic threshold of $100,000 in gross sales or 200 transactions annually.

2. Gather Required Information. Prepare the necessary business details for registration, including:

• Legal business name and address
• Federal Employer Identification Number (FEIN) or Social Security Number (SSN) for sole proprietors
• Business type (LLC, sole proprietorship, partnership, etc.)
• Description of products or services sold
• Start date for sales activities in New Jersey

3. Visit the New Jersey Division of Revenue and Enterprise Services Website. Go to the official New Jersey Division of Revenue and Enterprise Services website and access the Business Registration portal.

4. Complete the NJ Business Registration Application. Fill out the NJ-REG form (Business Registration Application) online. Indicate that your business will be collecting and remitting sales tax in New Jersey.

5. Register for a Certificate of Authority. During the registration process, request a Certificate of Authority, which allows you to collect and remit sales tax legally in the state.

6. Provide Business Details and Sales Tax Information. Enter detailed information about your business activities, such as whether you’re a remote seller, your anticipated sales volume, and the types of products or services you sell.

7. Submit the Application. Review your application for accuracy and submit it online. Ensure all required fields are completed to avoid delays in processing.

8. Receive Your Certificate of Authority. Once approved, you will receive your Certificate of Authority, which must be displayed prominently at your business location or made available for verification.

9. Set Up a Tax Collection System Implement a system, such as point-of-sale software, to collect the correct sales tax rate (6.625% or reduced rates in Urban Enterprise Zones) on taxable goods and services.

10. Understand Filing Obligations. Learn your assigned filing frequency—monthly, quarterly, or annually—based on your expected sales

How do I register for sales tax in New Jersey?

You can register for sales tax in New Jersey by completing the Business Registration Application (Form NJ-REG) online through the New Jersey Division of Revenue and Enterprise Services website.

Do I need to register for sales tax in New Jersey?

You need to register for sales tax in New Jersey if your business has a physical presence, employees, inventory, or meets economic nexus thresholds in the state.

Here's a New Jersey Guide for those starting a new business in the state.

New Jersey Sales Tax Filing

Filing New Jersey sales tax involves collecting sales tax from customers, filing returns, and remitting the tax to the New Jersey Division of Taxation. Businesses must file returns either monthly, quarterly, or annually, depending on their assigned filing frequency, using the state’s online filing system.

To file, you'll need your New Jersey Taxpayer Identification Number, sales records, and details of taxable and exempt sales. Payments are typically submitted electronically, and businesses must adhere to filing deadlines to avoid penalties.

What are the New Jersey filing requirements?

Businesses must register for a sales tax permit, collect sales tax on taxable transactions, and file returns based on their assigned frequency (monthly, quarterly, or annually).

What does New Jersey sales tax apply to?

New Jersey sales tax applies to the sale of tangible personal property, digital products, and certain services unless specifically exempt.

How often do you have to file sales tax in NJ?

Sales tax in New Jersey must be filed monthly, quarterly, or annually, depending on the business's sales volume and filing classification.

What is the penalty for filing sales taxes late in New Jersey?

The penalty for late filing is 5% of the tax due per month (up to 25%) plus interest, along with a possible $100 fee for failing to file on time.

New Jersey Sales Tax Due Date​

Filing Frequency	Due Date
Monthly	Every 20th day of the month(Ex. Due date for January is February 20)
Quarterly	Every 20th of the month following the quarter’s end. (Ex. Due date for Q1 (January 1 – March 31) is April 320)

What date is NJ sales tax due?

New Jersey sales tax is due on the 20th of the month following the end of the reporting period.

New Jersey Sales Tax Revenue Service

For any concerns about New Jersey sales tax registration, filing or general inquiries, you can reach out to them through the following

• Email - General Questions
• Telephone Assistance
• Website: https://www.nj.gov/treasury/taxation/

That wraps up New Jersey sales tax! Make compliance simple and efficient with Kintsugi—sign up or book a demo today to experience a streamlined sales tax management.