New Jersey has a sales tax rate of 6.625%. The state adds no local sales tax on top of it. Urban Enterprise Zone businesses and qualifying Salem County retailers may charge a reduced rate of 3.3125% on certain sales, while certain transactions in Atlantic City and parts of Cape May County are subject to additional special taxes.
| State taxing authority | New Jersey Division of Taxation |
|---|---|
| New Jersey sales tax rate | 6.625% |
| Local tax rates | None; New Jersey has no city or county sales tax |
| Special reduced rate | 3.3125% in qualified Urban Enterprise Zones and Salem County |
| Economic nexus threshold | Gross revenue exceeding $100,000 or 200 separate transactions delivered into New Jersey |
| Website | nj.gov/treasury/taxation |
| Tax line | (609) 292-6400 |
Most tangible personal property is taxable, but broad categories like clothing and groceries are exempt.
A business that exceeds $100,000 in gross revenue or 200 separate transactions delivered into the state must register and collect sales tax, regardless of physical presence.
Most registered businesses file quarterly; high-volume sellers also owe monthly payments.
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New Jersey's rate doesn't change based on where the buyer is located. A sale shipped to Newark, Trenton, or Cape May is subject to the same 6.625% tax unless it qualifies for one of the state's special reduced rates.
The state skips the city-by-city rate table most states use. What matters instead is which special program, if any, applies to a given sale:
Confirm your zone status through the UEZ certification system before applying the reduced rate. The rate applies to certified vendors selling from a location in the zone.
Multiply the taxable sale amount by 6.625% for most transactions. A $100 taxable purchase carries $6.63 in sales tax. UEZ and Salem County sales at the reduced rate use 3.3125% instead.
New Jersey uses destination-based sourcing: tax is calculated based on where the buyer receives the product.
This matters less here than in states with local rate variation, since the statewide rate doesn't change by location.
However, special rules apply to certain transactions. For example, the UEZ reduced rate depends on where and how the sale is made, while the Atlantic City Luxury Tax applies to specific transactions within Atlantic City.
Yes. New Jersey has been a full member of the Streamlined Sales and Use Tax Governing Board since 2005. Remote sellers can register through the Streamlined registration system to cover the state and other member states in a single application, and can work with a certified service provider to handle filings.
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Nexus is the connection between a business and a state that creates a duty to collect that state's sales tax.
Before the 2018 Wayfair Supreme Court decision, states could only require businesses with a physical presence to collect. That ruling opened the door for states, including New Jersey, to base the requirement on sales volume alone.
The state recognizes several nexus types, though physical and economic nexus matter most for typical businesses. See Numeral's nexus guide for how this works across states generally.
| Nexus type | Threshold |
|---|---|
| Physical | Physical presence in New Jersey. This includes an office, warehouse, and stored inventory. |
| Economic | Over $100,000 in gross revenue or 200 or more separate transactions delivered into New Jersey in the current or prior calendar year |
| Marketplace | Marketplace facilitators must collect and remit on behalf of third-party sellers on their platform |
| Click-through/affiliate | Ties to an in-state business that solicits sales for an out-of-state seller may create nexus |
New Jersey’s remote seller law has been active since November 1, 2018. A remote seller must register, collect, and remit sales tax if it meets either of the following criteria in the current or prior calendar year:
A few details are easy to miss. The $100,000 threshold runs on gross revenue, not taxable revenue, so nontaxable retail sales still count toward it.
Sales made exclusively through a marketplace don't require the seller to collect tax directly, but a seller who sells through both a marketplace and their own site must count both channels toward the threshold.
Crossing either threshold starts a 30-calendar-day grace period to register and begin collecting. Sellers don't owe tax on the specific transaction that pushes them over the line, only on sales after that point.
A remote seller who sells solely through marketplaces and still exceeds the threshold must register, but can request non-reporting status using Form C-6205-ST, since the marketplace is already collecting the tax. Sellers who only make sales for resale, or only make nontaxable retail sales, don't need to register at all.
Most retail sales of tangible personal property are taxed in New Jersey. This includes specified digital products and a defined list of services. Broad exemptions cover clothing, groceries, and prescription drugs, making the state more generous than many on everyday consumer goods.
| Category | Taxable? | Notes |
|---|---|---|
| Tangible personal property | Yes | Most physical goods are taxable unless specifically exempt |
| Groceries | No | Food for home consumption is exempt |
| Clothing and footwear | No | Broad exemption, with exceptions below |
| Prescription drugs | No | Fully exempt |
| SaaS | Generally no | Exempt unless classified as an information service |
| Specified digital products | Varies | Taxable only if electronically delivered, not merely accessed |
| Services | Varies | Only enumerated services are taxable |
| Shipping | Varies | Taxable if the underlying sale is taxable |
New Jersey's list of taxable services is shorter than its list of exempt professional services, but a few common categories catch businesses off guard:
New Jersey's exemption is broad and carries no dollar cap, but it doesn't cover everything worn on the body. Fur clothing and accessories are taxable, along with sports equipment and protective gear. Protective equipment is exempt only when it’s necessary for day-to-day tasks and worn as part of a uniform. If bought for personal use, it’s taxable.
New Jersey draws a sharp line between digital products that are delivered and those that are merely accessed.
A specified digital product, such as a downloaded movie, song, or e-book, is taxable when electronically delivered to an address in the state. If no permanent copy is provided to the customer, the same content is exempt.
That delivery-versus-access line also shapes how New Jersey treats software. Pure SaaS is generally not taxable in NJ because the state treats it as a service rather than tangible property. Pure SaaS means a customer accesses software remotely without downloading it,
Prewritten software that is downloaded is generally taxable, although electronically delivered software may qualify for an exemption when used directly and exclusively in the purchaser’s business, trade, or occupation.
Businesses buying goods for resale use Form ST-3, the standard resale certificate. Out-of-state sellers not registered in the state use Form ST-3NR instead.
New Jersey also accepts the Streamlined Sales and Use Tax Certificate of Exemption (Form ST-SST), which purchasers can use to claim most New Jersey sales tax exemptions when the form is properly completed.
Sellers should keep resale and exemption certificates, along with supporting sales records, for at least four years. New Jersey doesn't require certificates to be renewed on a set schedule, but an incomplete certificate can be treated as invalid during an audit.
New Jersey issues a Certificate of Authority after a business completes Form NJ-REG. Registration happens online through the Division of Revenue and Enterprise Services, and there's no fee for sales tax registration.
Businesses need their FEIN or Social Security number, legal name, entity type, and address to register. The state requires NJ-REG at least 15 business days before a business begins taxable sales, so the Division gets enough time to send filing instructions.
This 15-day rule is separate from the 30-day grace period that applies to remote sellers after they cross the economic nexus threshold.
Remote sellers use the same NJ-REG system but select "Register as Remote Seller Only" rather than a standard business registration.
As a Streamlined member, New Jersey also lets remote sellers register through the Streamlined system to cover multiple states at once. Collection must start once the 30-day grace period after crossing the threshold ends.
Once registered, a business needs to determine whether each sale is taxable, apply the correct rate for the delivery location, collect the tax at checkout, and track what it collects for reporting.
Most sales use the flat 6.625% rate; UEZ, Salem County, and Atlantic City sales need extra attention to confirm the special rate applies.
Amazon, Etsy, and Walmart Marketplace collect and remit New Jersey sales tax on transactions made through their platforms.
Sellers don’t need to collect tax separately on these marketplace sales, but they should include marketplace and direct sales when determining whether they meet New Jersey’s economic nexus threshold.
Sellers that otherwise have a New Jersey sales tax collection obligation must collect tax on taxable sales made outside the marketplace.
New Jersey ties shipping taxability directly to the sale taxability. It makes no difference, even if a delivery charge is listed separately on the invoice. A taxable sale means a taxable delivery charge, and an exempt sale means an exempt one.
If a shipment includes both taxable and exempt items, the seller should allocate the delivery charge based on the relative sales price or weight of the taxable items. Only the portion allocated to taxable items is subject to tax. If the seller does not allocate the delivery charge, the entire charge is taxable.
Standard New Jersey Sales and Use Tax filers generally submit Form ST-50 quarterly, due on the 20th of the month after each quarter ends. Zero returns are still required in quarters with no sales or tax collected. Returns go through the NJ Tax Portal.
Businesses that collected over $30,000 in the prior calendar year also file a Monthly Voucher payment (formerly Form ST-51) for the first and/or second month of a quarter when the tax due for that month exceeds $500.
Certain businesses, including qualified UEZ businesses and businesses subject to the Atlantic City Luxury Tax, Cape May County Tourism Sales Tax, or Salem County reduced sales tax, file specialized returns instead of Form ST-50.
| Filing frequency | General requirement |
|---|---|
| Quarterly (ST-50) | Generally required for every registered business, every quarter, even with $0 due |
| Monthly (formerly ST-51) | Required for the first and/or second month of a quarter when prior-year NJ Sales and Use Tax collected exceeded $30,000 and tax due for that month exceeds $500 |
New Jersey moved to a new taxpayer portal in 2025, replacing its older filing system. Sales and Use Tax returns and payments all go through the NJ Tax Portal. UEZ businesses file a separate monthly return, Form UZ-50, through the same portal.
You can learn more about filing NJ sales tax online here.
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New Jersey charges two penalties for a late return. A late filing triggers a flat $100 charge per month or partial month, plus 5% of the underpayment per month, capped at 25%. If a return still isn't filed 30 days after a delinquency notice, the 5% penalty shifts to apply against the full tax liability instead of just the underpayment.
A separate 5% late payment penalty can apply even when the return itself was filed on time. Interest accrues at 3 points above the prime rate, compounded annually. Unpaid penalties and interest get folded into the balance at year's end, which raises the base for future interest.
New Jersey requires businesses to keep sales records, exemption and resale certificates, and returns and payment records for at least four years. The Division of Taxation can audit a business to verify reported sales, taxability calls, exemptions claimed, rates applied, and whether the right amount of tax was collected and remitted.
Businesses that disagree with an audit finding can appeal through the Division's administrative process, and from there to the New Jersey Tax Court. Details are available through the Division's official guidance.
New Jersey's flat rate simplifies calculation, but the compliance details still pile up: tracking gross versus taxable revenue for nexus, watching for UEZ and Atlantic City exceptions, and keeping the ST-50 and Monthly Voucher payment calendar straight.
Numeral's nexus monitoring tracks sales against the state's $100,000 and 200-transaction thresholds automatically, flagging the exact point a business crosses into an obligation.
Once nexus is triggered, Numeral manages NJ sales tax registration on your behalf.
For a smooth process, the filing and remittance product handles the ST-50 filings and any Monthly Voucher payments.
Numeral's exemption certificate management helps businesses manage resale and exemption certificates, keeping documentation organized and audit-ready.
An expert reviews every filing before submission. The review comes with a guarantee: if a filing error on Numeral's part causes penalties or interest, Numeral covers the cost. Get started with Numeral to put New Jersey sales tax compliance on autopilot.
6.625% statewide, with nothing extra tacked on by cities or counties. UEZ and qualifying Salem County transactions drop to 3.3125% for qualifying in-person sales.
Exceed $100,000 in gross revenue or 200 separate transactions into the state in the current or prior calendar year. Either threshold alone triggers the registration requirement.
Only specific services are taxable. This includes repair services, telecommunications, and landscaping. Legal, accounting, medical, and most other professional services are exempt.
Generally not. New Jersey treats pure SaaS as a service rather than tangible property, so it's exempt unless the offering counts as a taxable information service.
This depends on the way these products are delivered. Downloaded music and e-books are taxable, but if accessed only through streaming, it’s exempt from taxation.
Yes, NJ charges sales tax on shipping and delivery if the underlying sale is taxable. Listing the delivery charge separately on the invoice doesn't change that.
Yes, once you have physical or economic nexus in the state. Businesses register using Form NJ-REG at least 15 business days before making taxable sales.
Not on sales made through the marketplace, since the facilitator collects and remits the tax. Marketplace sales still count toward New Jersey’s economic nexus threshold. Sellers that otherwise have a New Jersey sales tax collection obligation must collect tax on taxable direct sales.
Standard New Jersey Sales and Use Tax filers generally file Form ST-50 quarterly. Businesses that collected more than $30,000 in New Jersey Sales and Use Tax during the prior calendar year must also make a Monthly Voucher payment for the first and/or second month of a quarter when the tax due for that month exceeds $500. Certain businesses have specialized filing requirements.
No, both are broadly exempt. Clothing's exemption doesn't extend to fur clothing, accessories, sports equipment, or protective gear bought for personal use.
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