New Jersey: Sales Tax Handbook
New Jersey Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
2016 New Jersey Sales Tax Handbook
New Jersey Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
New Jersey's Sales Tax By The Numbers:
New Jersey has a higher-than-average sales tax, including when compared to states that allow localities to collect sales taxes (New Jersey does not).
Rankings by Average State + Local Sales Tax:
Ranked 21st highest by combined state + local sales tax
Ranked 26th highest by per capita revenue from state + local sales taxes ($915 per capita)
Rankings by State Sales Tax Only:
Ranked 2nd highest by state sales tax rate
Ranked 16th highest by per capita revenue from the statewide sales tax ($952 per capita)
Printable PDF New Jersey Sales Tax Datasheet
New Jersey has a statewide sales tax rate of 7.00%, which has been in place since 1966.
Unlike many other states, New Jersey doesn't allow municipal governments to collect a local option sales tax. Therefore, sales tax rates will be the same across the entire state.
This page provides an overview of the sales tax rates and laws in New Jersey. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the New Jersey Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in New Jersey?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how New Jersey taxes five types of commonly-exempted goods:
For more details on what types of goods are specifically exempt from the New Jersey sales tax see New Jersey sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in New Jersey? Taxation of vehicle purchases in particular are discussed in the page about New Jersey's sales tax on cars.
Are services subject to sales tax in New Jersey?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In New Jersey, specified services are taxable.
About the New Jersey Sales Tax
The state of New Jersey has relatively simple sales tax rate, and utilizes a flat state tax rate. However, unlike many other states, New Jersey does not impose any local taxes.
Is the New Jersey Sales Tax Destination-Based or Origin-Based?
New Jersey is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within New Jersey from a New Jersey vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.
Is New Jersey a Streamlined Sales Tax State?
New Jersey is a member of the Streamlined Sales and Use Tax Agreement, which means that the New Jersey Department of the Treasury has taken significant steps to simplify New Jersey's sales tax rules and administration process.
Contact the New Jersey Department of the Treasury
The New Jersey Sales Tax is administered by the New Jersey Department of the Treasury. You can learn more by visiting the sales tax information website at www.state.nj.us.
Phone numbers for the Sales Tax division of the Department of the Treasury are as follows:
- Local Phone: (609) 826-4400
- Toll-Free Phone: (800) 323-4400
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your New Jersey sales taxes, we recommend the following books:
Simplify New Jersey sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
New Jersey Sales Tax Rates by Zip Code:
Need an updated list of New Jersey sales tax rates for your business? Download our New Jersey sales tax database!