New Jersey's current sales tax rate

New Jersey has a 6.625% state sales tax on most purchases. This is the rate you pay on taxable goods and services across the state, and it applies the same way whether you shop in Newark, Atlantic City, or any other municipality.

The 6.625% figure is the state rate alone. Some counties and municipalities in New Jersey add their own local sales tax on top of the state rate, which means your total tax can be higher depending on where you make the purchase. The combined rate — state plus local — is what you actually pay at checkout.

Key Takeaways

  • New Jersey's state sales tax is 6.625%, applied to most taxable goods and services statewide.
  • Local county and municipal taxes stack on top of the state rate, so your total tax varies by location.
  • Groceries, prescription medications, and certain medical equipment are exempt from sales tax in New Jersey.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax, though some exceptions exist.
  • You can find your exact local rate by entering your address on the New Jersey Division of Taxation website or asking a retailer.

How local taxes add to the state rate

New Jersey allows counties and municipalities to impose their own sales tax on top of the state's 6.625%. These local rates vary significantly across the state. Some areas add as little as 0.5%, while others add 1% or more, bringing the total combined rate to between 7.125% and 7.625% in most places.

The combined rate is what matters when you pay. If you buy something in a county with a 1% local tax, you pay 7.625% total (6.625% state plus 1% local). If you cross into a county with a 0.5% local tax, the rate drops to 7.125%. The retailer collects the full combined amount and remits it to the state and local tax authorities.

You can find your exact local rate by visiting the New Jersey Division of Taxation website and entering your address, or by asking a cashier at any store in your area.

What is and is not taxed in New Jersey

Not everything you buy is subject to sales tax in New Jersey. Groceries — food you prepare at home — are exempt. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food, restaurant meals, and food you eat on premises are taxed.

Prescription medications are not taxed. Over-the-counter medicines like pain relievers and cold remedies are also exempt. Certain medical equipment and devices, including diabetic supplies and mobility aids, are exempt as well, though the rules can be specific to the item.

Services are generally not taxed in New Jersey. A haircut, car repair, plumbing work, or accountant's fee is not subject to sales tax. However, some services that involve tangible goods — like installation or delivery — may be taxed depending on how the charge is structured.

Clothing and footwear are not taxed in New Jersey, which is one of the few states with this exemption. This applies to most apparel, though some items like athletic protective gear may fall outside the exemption depending on their classification.

Items that are always taxed

Tangible goods like electronics, furniture, appliances, and tools are taxed at the full combined rate. Clothing is exempt, but accessories like belts, hats, and bags are generally taxed unless they are considered part of an outfit or protective wear.

Alcohol and tobacco products are taxed at the sales tax rate, plus they may be subject to additional state excise taxes. Gasoline is taxed, though the tax is usually included in the pump price you see. Digital goods and software downloads are taxed in New Jersey.

How to find your exact local sales tax rate

The New Jersey Division of Taxation maintains a searchable database on its website where you can enter your street address and see the exact combined sales tax rate for that location. This is the most reliable way to know what you will pay, since rates can differ between neighboring municipalities.

You can also call the Division of Taxation directly or visit a local retailer and ask what the combined rate is in that area. Many stores display the rate on receipts or can tell you when ready.

Sales tax on online and out-of-state purchases

If you buy something online from a retailer that has a physical presence in New Jersey, the retailer must collect and remit New Jersey sales tax, including your local rate. If you buy from an out-of-state retailer with no New Jersey location, the retailer may not collect tax at checkout — but you may owe use tax on that purchase when you file your state income tax return.

Use tax is a tax on goods you bring into New Jersey from out of state. It is meant to prevent people from avoiding sales tax by shopping across state lines. The rate is the same as the sales tax rate for your location. Most individual purchases do not trigger a use tax bill, but the obligation exists if you make large or frequent out-of-state purchases.

Frequently Asked Questions

Is clothing taxed in New Jersey?

No. Most clothing and footwear are exempt from sales tax in New Jersey. This includes shirts, pants, shoes, and jackets. Some items like athletic protective gear or specialty clothing may be taxed depending on how they are classified, but everyday apparel is not subject to tax.

Are groceries taxed?

Groceries you buy to prepare at home are not taxed. This includes produce, meat, dairy, bread, and canned goods. However, prepared food, restaurant meals, and food you eat on premises are taxed at the full combined rate.

What is the difference between sales tax and use tax?

Sales tax is collected by a retailer when you buy something. Use tax is a tax you owe on goods you bring into New Jersey from out of state if the retailer did not collect sales tax. Both are taxed at the same rate for your location. Most people do not owe use tax on individual purchases, but the obligation exists for large or frequent out-of-state buys.

Do I pay sales tax on services like haircuts or car repairs?

No. Most services in New Jersey are not subject to sales tax. This includes haircuts, repairs, professional fees, and labor. However, if a service includes a tangible product — like parts in a repair — the product portion may be taxed depending on how the bill is itemized.

Where do I find my exact local sales tax rate?

Visit the New Jersey Division of Taxation website and use their address lookup tool, or call the division directly. You can also ask a cashier at any store in your area. Rates vary by municipality, so entering your specific address gives you the most accurate combined rate.