New Jersey: Sales Tax Handbook
How to file your sales taxes in New Jersey
Once your business has a New Jersey sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the New Jersey government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In New Jersey
If the seller has an in-state location in the state of New Jersey, they are legally required to collect sales tax at 7%, as New Jersey doesn't have any local taxes, just a statewide sales tax.
If the seller's location is out of state, then the collection of sales tax is still done in the same way. The seller would still be required to charge 7%.
Sales Tax Collection Discounts In New Jersey
While many states allow merchants to keep a small percentage of the sales tax they collect as a collection discount, or compensation for the work put in collecting the tax on behalf of the state, New Jersey does not currently allow this.
Your New Jersey Sales Tax Filing Requirements
To file a sales tax return in New Jersey, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
The state of New Jersey provides all taxpayers with three choices for filing their taxes. One option is to file online by using the New Jersey Division of Taxation. This online system can also be utilized to remit the payment. The online system Autofile can be utilized to both file and pay your business's taxes online. the final option is filing manually through the mail, using form ST-50.
Tax payers should be aware of a late filing penalty. For each month, or fraction of a month, that it is late, a 5% penalty is owed. The maximum compounded penalty percentage is 25%. For each late month, an additional one hundred dollars may also be charged. The penalty for a late payment is also 5%. Interest is calculated annually at 3% higher than the primary rate for each individual month. All unpaid penalties and interest is compounded, and owed at the end of each calendar year.
The state of New Jersey requires that every seller who owns a sales tax permit to file a sales tax return on the required day, even if it is a "zeroes-out" tax return, and there is nothing to report.
Your New Jersey Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period. For a list of this year's actual due dates, see our calendar of New Jersey sales tax filing due dates.
Where To File Your New Jersey Sales Tax Return:
Filing Your New Jersey Sales Tax Returns Online
New Jersey supports electronic filing of sales tax returns, which is often much faster than filing via mail.Electronic sales tax filing is required for all taxpayers.
New Jersey allows businesses to make sales tax payments electronically via the internet.Electronic payments are required for taxpayers whose tax liability for the prior year year was a minimum of ten thousand dollars.
You can process your required sales tax filings and payments online using the official New Jersey On-line Services Filing and Payment Services website, which can be found here . You should have received credentials to access your New Jersey On-line Services Filing and Payment Services account when you applied for your New Jersey sales tax license.
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.
Back to New Jersey Sales Tax Handbook Top