Yes, New Jersey has a sales tax of 6.625 percent

New Jersey charges a sales tax of 6.625 percent on most retail purchases. This is the statewide rate that applies when you buy taxable goods at a store, online, or through mail order. Some counties and municipalities do not add a local sales tax on top of this — New Jersey is one of the few states where the state rate is the only sales tax you pay in most places.

The 6.625 percent rate has been in place since 2006. It applies to tangible goods — things you can touch and take home — but not to services. A haircut, a plumbing repair, or a doctor's visit is not taxed. A shirt, a phone, or a lamp is taxed at checkout.

Key Takeaways

  • New Jersey's statewide sales tax is 6.625 percent with no additional local tax in most areas.
  • Sales tax applies to physical goods but not to services like haircuts, repairs, or medical care.
  • Groceries, prescription medications, and certain clothing items are exempt from sales tax.
  • Online purchases from out-of-state sellers are subject to New Jersey sales tax if shipped to a New Jersey address.
  • Tax-exempt organizations like nonprofits and government agencies do not pay sales tax on purchases.

What items are exempt from New Jersey sales tax

New Jersey exempts several categories of goods from the 6.625 percent rate. Groceries and food for home consumption are not taxed — this includes bread, milk, vegetables, and meat from a supermarket. Prepared food and restaurant meals are taxed, but raw ingredients you cook at home are not.

Prescription medications are also exempt. Over-the-counter drugs like aspirin or cold medicine are taxed, but anything you need a prescription to buy is not. Medical devices prescribed by a doctor — such as diabetic testing supplies or hearing aids — are generally exempt as well.

Clothing and footwear under $110 per item are exempt from sales tax. A shirt that costs $50 is not taxed. A coat that costs $150 is taxed on the full amount. This rule applies to each individual item, so you could buy five $100 shirts tax-free, but a $110 jacket would be taxed.

A few other items are exempt: newspapers and magazines, certain energy sources for home heating, and items purchased by tax-exempt organizations like nonprofits and government agencies.

How sales tax works on online and out-of-state purchases

If you order something online from an out-of-state seller and it ships to a New Jersey address, you owe New Jersey sales tax on that purchase. Large online retailers like Amazon collect this tax at checkout. Smaller sellers may not, and in that case you are technically responsible for paying the tax yourself — though enforcement is limited for individual purchases.

The rule is the same whether you order from a website, by phone, or by mail: if the item is taxable and it comes to New Jersey, the 6.625 percent tax applies. The seller's location does not matter. What matters is where the item is shipped.

If you buy something while traveling outside New Jersey and bring it home, you do not owe New Jersey sales tax on it. Sales tax is paid where you make the purchase, not where you live.

Who does not have to pay sales tax

Tax-exempt organizations — nonprofits, schools, hospitals, and government agencies — do not pay sales tax on their purchases. They provide a tax-exempt certificate to the seller instead of paying at checkout. A local food bank, a public school, or a city government can buy goods without the 6.625 percent charge.

Resellers who buy goods to resell them also do not pay sales tax on those purchases. A retail store buying inventory from a wholesaler does not pay tax; the tax is collected when the store sells the item to a customer. The reseller provides a resale certificate to the wholesaler.

Individual consumers do not have a blanket exemption. You pay sales tax on taxable purchases unless the item itself is in an exempt category — like groceries or prescription drugs.

Sales tax on specific types of purchases

Motor vehicles are subject to sales tax in New Jersey, but the tax is collected when you register the vehicle with the Motor Vehicle Commission, not at the dealership. The rate is 6.625 percent of the purchase price.

Gasoline and diesel fuel are taxed, but the tax is built into the pump price — you do not see it listed separately. The rate is the same 6.625 percent.

Utilities like electricity, natural gas, and water are taxed at a lower rate of 5.525 percent, not the full 6.625 percent. This reduced rate has been in place to help with heating and cooling costs.

Alcohol and tobacco are taxed at the standard 6.625 percent rate, plus they carry additional state excise taxes on top of that. Beer, wine, and spirits all have their own per-unit taxes in addition to sales tax.

How to understand your receipt

When you buy something in a New Jersey store, the sales tax should appear as a separate line on your receipt. The subtotal is the price before tax, and the tax amount is 6.625 percent of that subtotal (or less if the item is exempt or in a reduced-tax category). The total is the subtotal plus tax.

If you buy multiple items, some taxed and some exempt, the store calculates tax only on the taxable items. A receipt with groceries and a magazine might show tax on only the magazine, or no tax at all if both items are exempt.

Online receipts work the same way. The tax line should show the 6.625 percent charge if the item is taxable and shipping to New Jersey. If you do not see a tax line and the item is taxable, contact the seller to ask whether tax was included in the price or forgotten.

Frequently Asked Questions

Do I pay sales tax on clothes at all stores in New Jersey?

You pay sales tax on clothing items that cost more than $110 each. Items under $110 are exempt. This applies at all stores — department stores, outlet stores, and online retailers shipping to New Jersey. The exemption is based on the price of each individual item, not your total purchase.

Is sales tax charged on Amazon orders shipped to New Jersey?

Yes. Amazon collects New Jersey sales tax on taxable items shipped to a New Jersey address. Groceries, prescription drugs, and clothing under $110 are still exempt even when ordered online. The tax appears as a separate line on your order confirmation.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of sale. Use tax is a tax you owe on items you buy out of state and bring into New Jersey without paying sales tax. In practice, most people do not pay use tax on individual purchases, though it technically applies to large purchases or business inventory.

Do I pay sales tax on a haircut or other services?

No. Services like haircuts, repairs, cleaning, and medical care are not subject to sales tax in New Jersey. You pay only the price quoted. This applies to all service businesses — salons, plumbers, mechanics, and doctors.

Can I get a refund of sales tax I already paid?

Individual consumers cannot get a refund of sales tax paid on personal purchases. Tax-exempt organizations can avoid paying tax by providing a certificate at the time of purchase. If you paid tax on an item that should have been exempt, contact the store for a refund of the tax amount.