New Jersey Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in New Jersey?

What is taxable in New Jersey?

How do you register to collect sales tax in New Jersey?

What is the economic nexus threshold for New Jersey?

How to register for sales tax in New Jersey

Before you can collect sales tax, you need to register with the New Jersey Division of Taxation. Here is the step-by-step process.

1. Register online through the New Jersey Division of Taxation at njportal.com/taxation
2. Apply for a Certificate of Authority (CA) — registration is free
3. Provide your FEIN or SSN, business entity type, and New Jersey location details
4. A separate registration is required for each business location
5. Certificates are typically issued within 10-15 business days

How to collect sales tax in New Jersey

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in New Jersey.

1. Determine taxability — New Jersey exempts clothing, groceries, and certain other items
2. The rate is a uniform 6.625% statewide (3.3125% in Urban Enterprise Zones)
3. New Jersey is a destination-based state for sales tax sourcing
4. Charge the correct rate at the point of sale and itemize on receipts
5. Accept New Jersey resale certificates (Form ST-3) from qualifying buyers
6. Keep records of all transactions and exemptions for at least 4 years

How to file and remit sales tax in New Jersey

Filing your sales tax return on time is critical to avoid penalties. New Jersey requires electronic filing for most businesses.

1. File electronically through the New Jersey Division of Taxation online portal
2. Filing frequency is monthly or quarterly based on your tax liability
3. Monthly returns are due on the 20th of the following month; quarterly returns on the 20th of the month following the quarter
4. Report gross sales, exempt sales, and taxable sales
5. Pay electronically by the return due date
6. Retain all records for at least 4 years

What is exempt from New Jersey sales tax?

Not everything is subject to sales tax. New Jersey provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the New Jersey Division of Taxation.

• •Sales for resale with a valid New Jersey resale certificate (Form ST-3)
• •Clothing and footwear (all clothing is exempt regardless of price)
• •Grocery food for home consumption (unprepared food)
• •Prescription drugs and over-the-counter medications
• •Paper products and disposable paper goods for household use
• •Sales to the federal government and New Jersey state agencies
• •Qualifying nonprofits with an ST-5 exemption certificate

What is use tax in New Jersey?

New Jersey use tax applies at 6.625% when you purchase taxable goods from out-of-state vendors who do not collect New Jersey sales tax. Businesses report use tax on their regular sales tax return. Individual consumers report use tax on their NJ income tax return. Common triggers include online purchases, out-of-state equipment, and catalog orders.

Does New Jersey have marketplace facilitator rules?

New Jersey requires marketplace facilitators with $100,000 in New Jersey sales or 200 transactions to collect and remit sales tax on behalf of third-party sellers. Amazon, eBay, Etsy, and similar platforms collect New Jersey's 6.625% sales tax on marketplace transactions. Sellers using marketplace facilitators are not required to collect on marketplace sales.

What are the penalties for sales tax non-compliance in New Jersey?

New Jersey charges a late-filing penalty of 5% per month (up to 25%). Interest accrues at the prime rate plus 3%. A $100 penalty applies for each late-filed return. Failure to register or collect can result in a penalty of $10,000 per violation. Fraud penalties are 50% of the underpayment. Criminal penalties for willful evasion include fines and imprisonment.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: New Jersey Division of Taxation.