New Jersey's standard sales tax rate is 6.625 percent
New Jersey charges 6.625 percent sales tax on most retail purchases. This is the rate you pay when you buy clothing, electronics, furniture, or most other goods at a store or online. The rate is uniform across the state — it does not change by county or municipality, which makes New Jersey different from many other states where local sales taxes stack on top of a state rate.
The 6.625 percent figure has been in place since 2006. It applies to the total sale price before any discounts or coupons are applied. If you buy an item for $100, you add $6.63 in sales tax, for a total of $106.63.
Key Takeaways
- New Jersey's sales tax rate is 6.625 percent statewide with no additional local taxes added on top.
- Groceries, prescription medications, and most clothing under $110 per item are exempt from sales tax.
- Restaurant meals, prepared foods, and non-prescription items are taxed at the full 6.625 percent rate.
- Online purchases from out-of-state sellers are subject to New Jersey sales tax if the seller has a physical presence or meets economic thresholds in the state.
What is exempt from New Jersey sales tax
Several categories of goods and services are not subject to the 6.625 percent tax. Groceries — unprepared food items you cook at home — are completely exempt. This includes bread, milk, vegetables, meat, and canned goods. The exemption does not explore to hot food, food eaten at the store, or items from a deli counter.
Prescription medications are exempt when dispensed by a licensed pharmacist with a valid prescription. Over-the-counter medications like pain relievers, cold medicine, and vitamins are taxed. Clothing and footwear under $110 per item are exempt, but items priced at $110 or more are fully taxed. A pair of shoes for $109 is tax-free; a pair for $110 is taxed on the full amount.
Medical equipment prescribed by a doctor — such as wheelchairs, hearing aids, or diabetic supplies — is also exempt. Items used in manufacturing or agriculture may be exempt depending on their use. If you are unsure whether a specific item is taxed, the New Jersey Division of Taxation website lists detailed exemptions by product category.
Items and services that are always taxed
Restaurant meals and prepared foods are taxed at 6.625 percent, whether you eat in or take out. This includes pizza, deli sandwiches, rotisserie chicken, and anything from a food service counter. Beverages like soda, coffee, and juice are taxed whether they are cold or hot.
Hotel rooms are taxed at 6 percent — a different rate than the standard sales tax. Haircuts, dry cleaning, and other personal services are taxed. Gasoline and diesel fuel are taxed, though the tax is built into the pump price you see displayed. Cigarettes and tobacco products are taxed at 6.625 percent plus an additional excise tax.
Digital goods like e-books, streaming subscriptions, and downloaded software are taxed. Admission to movies, concerts, sporting events, and amusement parks is taxed. Rental cars are taxed at 6 percent. If you purchase a service that includes both taxable and non-taxable components, the taxable portion is what gets the tax applied.
How online purchases are taxed
If you order from an online retailer that has a warehouse, office, or other physical location in New Jersey, that seller must collect and remit New Jersey sales tax on your purchase. This applies regardless of where the seller is based or where you live within the state.
If an online seller has no physical presence in New Jersey but meets certain sales thresholds — currently $100,000 in sales to New Jersey residents in the past 12 months, or 200 or more separate transactions — they are also required to collect New Jersey sales tax. Most large retailers like Amazon, Walmart, and Target meet these thresholds and collect tax on New Jersey orders.
Some smaller online sellers may not collect New Jersey sales tax at checkout. In those cases, you may owe use tax on the purchase when you file your New Jersey income tax return. Use tax is the same rate as sales tax and applies to goods you bring into the state or purchase from out-of-state sellers. Most individual taxpayers do not report use tax, but it is technically owed.
Sales tax on specific purchases
| Item or Service | Tax Rate | Notes |
|---|---|---|
| Groceries (unprepared) | Exempt | Bread, milk, vegetables, meat, canned goods |
| Restaurant meals | 6.625% | Includes takeout and prepared foods |
| Clothing under $110 | Exempt | Per item; $110 and above are taxed |
| Prescription medications | Exempt | With valid prescription only |
| Over-the-counter medications | 6.625% | Pain relievers, cold medicine, vitamins |
| Hotel rooms | 6% | Different rate than standard sales tax |
| Rental cars | 6% | Different rate than standard sales tax |
| Gasoline | 6.625% | Included in pump price |
| Movie or concert tickets | 6.625% | Admission to entertainment venues |
| Streaming services | 6.625% | Digital goods and subscriptions |
Understanding the $110 clothing threshold
New Jersey's clothing exemption applies only to items priced under $110 per piece. This means a single shirt, pair of pants, or pair of shoes is measured individually at the time of purchase. If you buy five shirts at $20 each, all five are exempt. If you buy one coat for $150, the entire $150 is taxed.
The $110 threshold applies to the item's price before any discounts or sales. If a $120 jacket is marked down to $95, it becomes exempt because the purchase price is now under $110. Accessories like belts, scarves, hats, and gloves are also exempt if under $110. Shoes and socks follow the same rule.
Sports equipment like sneakers, cleats, and athletic shoes are treated as clothing and are exempt if under $110. However, items that are not typically worn — such as sports equipment used in play (baseball gloves, helmets, pads) — may be taxed even if they are worn. When in doubt, ask the cashier or check the receipt to see if tax was applied.
Where to find current tax information
The New Jersey Division of Taxation maintains an official website with detailed information about what is and is not taxed. You can search by product category or contact them directly with questions about specific items. The division also publishes a sales tax guide for retailers that lists hundreds of products and their tax status.
If you are a business owner collecting sales tax, you must register with the New Jersey Division of Taxation and file returns on a schedule determined by your sales volume. Most businesses file monthly or quarterly. If you are a consumer, you do not need to register — the seller is responsible for collecting and remitting the tax.
Frequently Asked Questions
Is sales tax included in the price shown on the shelf?
No. The price on the shelf or online is the pre-tax price. Sales tax is added at checkout. A $50 item will cost $53.31 after tax is applied.
Do I pay sales tax on items I buy and ship out of state?
If you purchase an item in New Jersey and have it shipped out of state, you typically do not owe New Jersey sales tax. However, you may owe sales tax in the state where it is delivered. The tax rules depend on where the seller is located and where the item is shipped.
What happens if a store charges me the wrong sales tax?
Check your receipt. If you were overcharged, ask the store for a refund at the register. If the error was significant or the store refuses, you can contact the New Jersey Division of Taxation to file a complaint. Keep your receipt as proof.
Are used items subject to sales tax in New Jersey?
Used items sold by a retailer are taxed at 6.625 percent. Items sold between private individuals are not subject to sales tax. A used car sold by a dealership is taxed; a used car sold by a private owner is not.
Do I owe sales tax on items I buy from a garage sale or secondhand store?
Items sold by a business — including secondhand stores and thrift shops — are taxed. Items sold by a private individual at a garage sale are not. The tax status depends on who is selling, not on whether the item is new or used.