New Jersey sales tax looks simple: one statewide rate and no local add-ons. The questions come with the details. Is your service taxable? Do you file when you had no sales? Do you owe tax on what you buy online? This guide covers the rate, what is and is not taxable, how to register, when to file, and the rules for online and out-of-state sellers. It is based on the New Jersey Division of Taxation and its Sales Tax Guide (S&U-4).
NJ sales tax rate in 2026
| Rate | Applies to |
|---|---|
| 6.625% | Standard statewide rate on taxable sales. There are no county or city sales taxes on top. |
| 3.3125% | Certified sellers in an Urban Enterprise Zone (UEZ), on qualifying in-person sales of tangible goods |
| 3.3125% | Qualifying sellers located in Salem County, on in-person retail sales of tangible goods |
| 6.625% use tax | Taxable purchases used in New Jersey on which no sales tax, or a lower tax, was paid |
The reduced UEZ and Salem County rates have strict conditions. The seller needs a UEZ certificate (or a Salem County location). The buyer must order in person, and the goods must be picked up at, or delivered from, the seller’s location in the zone. Motor vehicles, services, prepared food, and internet or phone sales are among the sales that never get the reduced rate.
To add tax to a price or take it out of a total, use the NJ sales tax calculator at the end of this article. On a $100 sale, 6.625% is $6.63. On a $100 tax-included total, the tax is $6.21, not $6.63.
What is taxable in New Jersey
New Jersey taxes the retail sale of tangible personal property, specified digital products (such as downloaded music, e-books and prewritten software delivered electronically) and certain services, unless the law exempts them.
Common taxable and exempt items
| Generally taxable | Generally exempt |
|---|---|
| Most physical goods: furniture, electronics, tools, toys | Most food sold as groceries |
| Prepared food: heated food, meals, food sold with utensils, sandwiches | Bakery items sold as such, unless sold with utensils |
| Candy and soft drinks | Most clothing and footwear |
| Alcoholic beverages | Prescription and over-the-counter drugs |
| Digital products: e-books, downloaded music, software | Disposable paper products for household use |
| Clothing accessories such as jewelry and handbags, and sports equipment | Sales for resale, with a valid resale certificate |
Services
This is where most small businesses go wrong. New Jersey taxes most services performed on tangible property (repairs, installation, maintenance, cleaning of goods) plus specific services listed in the law. Examples from the Division’s guide:
| Taxable services | Exempt services |
|---|---|
| Landscaping and lawn mowing | Accounting and bookkeeping |
| Janitorial and cleaning services | Legal and architectural services |
| Appliance and computer repair | Advertising services |
| Catering | Barber shop and beauty parlor services |
| Photography and photocopying | Moving services |
| Storage charges | Credit repair services |
| Investigation and detective services | Pet sitting at the owner’s home |
Delivery charges on taxable items are taxable too. When a shipment mixes taxable and exempt goods, only the share of the delivery charge that relates to the taxable goods is taxed.
The lists in S&U-4 are not complete. If your product or service is not clearly covered, check with the Division of Taxation or ask us before you start charging, or not charging.
Registering to collect sales tax
Any business operating in New Jersey registers with the state for tax purposes by filing Form NJ-REG, the Business Registration Application, at least 15 business days before it starts doing business. LLCs and corporations also make a public records filing to form the entity. Registration is done online through the NJ Division of Revenue, and our NJ business registration service can handle it for you.
Once registered:
- Charge tax separately. Sales tax must be stated separately on every invoice, receipt or sales slip.
- Collect exemption certificates. When a customer buys for resale or for an exempt use, get a fully completed certificate. The most common are the Resale Certificate (Form ST-3), the Exempt Use Certificate (ST-4) and the Exempt Organization Certificate (ST-5). Keep each one for at least four years after the last sale it covers.
- Record the tax as a liability, not income. The tax you collect belongs to the state until you remit it.
Filing NJ sales tax: forms and due dates
Every registered seller files Form ST-50, the quarterly return, for every quarter, even when no sales were made. Returns and payments are filed electronically and are due by the 20th of the month after the quarter:
| Quarter | Months | ST-50 due |
|---|---|---|
| Q1 | January–March | April 20 |
| Q2 | April–June | July 20 |
| Q3 | July–September | October 20 |
| Q4 | October–December | January 20 |
Monthly payments. A business that collected more than $30,000 of New Jersey sales tax in the prior year also pays monthly. For the first and second month of each quarter it pays by the 20th of the next month if it collected more than $500 that month, using the monthly remittance voucher (Form ST-51). The quarterly ST-50 then reconciles the quarter. That is the Division’s filing chart. When a due date falls on a weekend or holiday, it moves to the next business day.
Filing late or not filing leads to penalties and interest that grow the longer a return stays open. Missed quarters are best filed as soon as possible.
Use tax: what your business owes on its own purchases
Use tax is the other half of the system. It is due when you buy something taxable for use in New Jersey and the seller did not charge New Jersey tax, which often happens with online, phone and out-of-state purchases. The rate is the same 6.625%, and it is calculated on the purchase price including shipping. If you paid a lower sales tax to another state, you owe the difference.
The Division’s own example: a $3,000 item plus $50 shipping, bought from an out-of-state seller who charged no tax, means $202.06 of use tax. Businesses report use tax on their sales tax return; businesses not registered for sales tax report it separately.
Online and out-of-state sellers
Under New Jersey’s remote seller rules, a business without a physical presence in New Jersey must register and collect New Jersey sales tax if, in the current or prior calendar year, it has:
- more than $100,000 of gross revenue from sales delivered into New Jersey, or
- 200 or more separate sales into New Jersey.
Sales through a marketplace facilitator such as Amazon, Etsy or eBay are generally taxed and remitted by the marketplace. Sales on your own website are your responsibility. Selling only through marketplaces usually means you do not collect yourself, but you should still keep the marketplace reports with your records.
For foreign-owned LLCs selling to U.S. customers, the same rules apply. The state cares where the goods are delivered, not where the owner lives.
Common mistakes
- Skipping zero returns. A quarter with no sales still needs an ST-50.
- Treating a taxable service as exempt. Landscaping, cleaning and repair businesses are often surprised.
- Multiplying a tax-included total by 6.625% instead of backing the tax out, which overstates the tax.
- Accepting incomplete resale certificates. Only a fully completed certificate protects you.
- Recording collected tax as revenue in the books. The ST-50 and the books then never agree.
- Forgetting use tax on equipment and supplies bought online without tax.
Getting it filed
Sales tax is a routine filing that becomes expensive when it slips. Our NJ sales tax filing service prepares the ST-50 and monthly payments from reconciled books and files them before the 20th. Our monthly bookkeeping keeps sales tax payable separate from revenue all year. If you have missed quarters, we prepare the missing returns and the catch-up bookkeeping behind them. Most of our sales tax clients are New Jersey small businesses such as restaurants, retailers and service companies.
