New Jersey's current sales tax rate

New Jersey has a 6.625% sales tax on most purchases. This is the statewide rate that applies across all counties. Unlike some states, New Jersey does not allow counties or municipalities to add their own local sales tax on top of the state rate, so the rate you pay is the same whether you shop in Newark or Cape May.

The 6.625% rate has been in place since 2006. It applies to the sale price of taxable items at the register — the price tag you see is before tax, so your final cost will be higher.

Key Takeaways

  • New Jersey's statewide sales tax is 6.625% and does not vary by county or city.
  • Groceries, prescription medications, and most clothing under $110 are exempt from sales tax.
  • Restaurant meals, prepared foods, and non-prescription items are taxed at the full 6.625% rate.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax in New Jersey.

What is exempt from New Jersey sales tax

Several categories of items are not taxed in New Jersey. Groceries — unprepared food you buy to cook at home — are tax-free. This includes produce, meat, dairy, bread, and canned goods. However, prepared foods, hot foods, and anything you eat in a restaurant or buy ready-to-eat are taxed.

Prescription medications are exempt when you fill them with a valid prescription. Over-the-counter medicines like pain relievers, cold medicine, and vitamins are taxed. Clothing and footwear under $110 per item are also exempt — a pair of jeans for $80 is tax-free, but a winter coat for $150 is taxed on the full amount.

Medical equipment prescribed by a doctor, such as wheelchairs, crutches, and hearing aids, is exempt. Newspapers and magazines are not taxed. Services — haircuts, car repairs, plumbing, accounting — are generally not subject to sales tax, though some specific services may have their own rules.

Items that are always taxed

Restaurant meals and prepared foods are taxed at 6.625%, whether you eat in or take out. This includes deli sandwiches, rotisserie chicken, pizza by the slice, and anything from a food counter. Beverages like soda, juice, and coffee are taxed. Alcohol — beer, wine, and liquor — is taxed at the sales tax rate plus an additional excise tax.

Clothing over $110 per item is taxed on the full price. A $200 jacket is taxed on all $200. Electronics, appliances, furniture, and household goods are taxed. Gas and diesel fuel at the pump are taxed. Haircuts, manicures, and other personal services are taxed.

How sales tax appears on your receipt

When you check out, the cashier rings up the taxable items and calculates 6.625% of that subtotal. The tax amount appears as a separate line on your receipt before the final total. If you buy a mix of taxable and exempt items — say, groceries and a magazine — only the taxable items are taxed.

Online purchases from New Jersey retailers are taxed the same way as in-store purchases. If you order from an out-of-state retailer and have it shipped to New Jersey, the retailer may or may not charge you sales tax depending on whether they have a physical presence in the state and their own policies. Some out-of-state retailers do not charge New Jersey sales tax, though New Jersey residents are technically responsible for reporting and paying "use tax" on untaxed purchases — in practice, this is rarely enforced for individual shoppers.

Sales tax on specific purchases

Some purchases confuse shoppers because the rules are specific. Candy and snacks are taxed, but unprepared groceries are not — so a bag of raw almonds from the grocery store is tax-free, but a candy bar is taxed. Soft drinks and energy drinks are taxed, but milk and juice are not. Hot prepared foods are taxed, but cold prepared foods may not be — a cold sandwich from a deli counter is often tax-free, while a hot rotisserie chicken is taxed.

Clothing for children follows the same $110 rule as adult clothing. A child's shirt for $40 is tax-free; a child's coat for $150 is taxed. School supplies like notebooks, pens, and folders are taxed. Books are not taxed, but e-books and digital content are taxed.

Understanding the difference between price and total

The price you see on a shelf tag or online listing does not include sales tax. If an item costs $10, you will pay $10.66 at the register (plus any additional taxes like excise tax on alcohol). This is different from some states that include tax in the displayed price. Budget for the full amount including tax when you shop.

When you see a sale advertised as "20% off," the discount applies to the pre-tax price. If a $50 item is 20% off, it becomes $40, and then 6.625% tax is added to that $40.

Frequently Asked Questions

Is clothing always tax-free in New Jersey?

No. Clothing and footwear under $110 per item are tax-free, but anything $110 or more is taxed on the full price. A $109 pair of shoes is tax-free; a $110 pair is taxed. The $110 threshold applies per item, not per purchase.

Do I pay sales tax on groceries?

Unprepared groceries — raw vegetables, meat, dairy, bread, canned goods — are not taxed. Prepared foods, hot foods, and anything ready to eat are taxed. A rotisserie chicken from the grocery store deli is taxed; a raw chicken from the meat counter is not.

What about online shopping — do I pay New Jersey sales tax?

If you order from a New Jersey retailer or a large national retailer with a New Jersey presence, sales tax is usually charged. Smaller out-of-state retailers may not charge it. The tax rules depend on the retailer's location and size, not where you live.

Is there sales tax on prescription drugs?

No. Prescription medications filled with a valid prescription are exempt. Over-the-counter medicines like aspirin, cold medicine, and vitamins are taxed at 6.625%.

Do services like haircuts have sales tax?

Yes. Personal services including haircuts, manicures, massages, and car repairs are taxed at 6.625%. The tax applies to the service charge, not to any products used during the service.