Elizabeth Sales Tax Guide 2025 (New Jersey)

Navigating sales tax compliance in Elizabeth, New Jersey, can be challenging for businesses of all sizes. Understanding the local regulations, New Jersey sales tax rates, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance and integrations for businesses, helping you focus on growth without the headache of managing complex tax rules. In this guide, we'll break down everything you need to know about sales tax in Elizabeth for 2025.

Elizabeth Sales Tax Rate (New Jersey)

As of 2025, Elizabeth, New Jersey, imposes a combined sales tax rate of 6.62% on most goods and services. Notably, parts of Elizabeth are designated as Urban Enterprise Zones, where eligible businesses can charge a reduced sales tax rate of 3.3125% to encourage economic development.

Jurisdiction	Sales tax rate
State Tax	6.62%
County Tax	0.00%
City Tax	0.00%
Special Tax	0.00%
Combined Tax	6.62%

(Note: Sales tax rates are subject to change. Check the New Jersey Department of Revenue’s website for the latest updates.)

Elizabeth Sales Tax Calculator

As a business owner in Elizabeth, NJ, you must understand how to accurately calculate, collect, and manage sales and use tax registration to stay compliant with state regulations. Whether you're selling retail goods, providing taxable services, or operating in an Urban Enterprise Zone (UEZ), getting the numbers right is crucial.

Step 1: Know the Sales Tax Rate in Elizabeth, NJ

The sales tax rate for Elizabeth, NJ, is 6.625% for most businesses. However, if your business is in an Urban Enterprise Zone (UEZ) and qualifies for the program, a reduced tax rate of 3.3125% applies to certain sales.

• Standard Sales Tax Rate: 6.625%
• UEZ Reduced Sales Tax Rate: 3.3125% (if eligible)

Step 2: Determine If Your Products or Services Are Taxable

Not all sales are taxed in New Jersey. Some products and services are exempt from sales tax, while others require full or reduced taxation.

• Taxable: Electronics, furniture, clothing (if not exempt), restaurant meals, general merchandise, and certain services.
• Exempt: Most groceries, prescription medications, medical devices, and some clothing items.

For a full list of tax-exempt products, refer to the New Jersey Division of Taxation website (here).

Step 3: Calculate Sales Tax Based on Your Business Location

You own a clothing boutique in Elizabeth and sell a designer handbag for $250:

1. Multiply the item price by the tax rate: 250 × 6.625% = 16.56
2. Add the tax to the sale price: 250 + 16.56 = 266.56

Final Price: $266.56

Final Tips for Elizabeth Business Owners

• Use the correct tax rate: 6.625% for most businesses, 3.3125% if you're in a UEZ.
• Ensure you're charging tax only on taxable items: Some items (like groceries) are exempt.
• File sales tax on time: The state requires monthly, quarterly, or annual filings depending on sales volume.
• Consider using automated tools: Point-of-sale (POS) systems, such as Square, QuickBooks, or Shopify, can help calculate and track sales tax.

FAQ on Sales Tax in Elizabeth NJ

What is the Sales Tax in Elizabeth NJ?

The sales tax rate in Elizabeth, NJ, is 6.625%, but businesses in the Urban Enterprise Zone (UEZ) may charge a reduced rate of 3.3125% on eligible sales.

How much is Sales Tax in Elizabeth NJ?

Most purchases in Elizabeth are taxed at 6.625%, except for certain UEZ businesses that qualify for the lower 3.3125% rate.

Elizabeth Sales Tax Filing Steps