How does New Jersey’s use tax work, and when is it applicable?

Use tax is designed to ensure fair taxation for goods and services where sales tax wasn’t collected. This applies to items purchased online, out of state, or abroad. For example, if you buy office supplies from an out-of-state vendor that doesn’t charge New Jersey sales tax, you’re required to pay the 6.625% use tax on those items.

Understanding use tax helps individuals and businesses remain compliant and avoid penalties.