New Jersey is simpler than most states on rate: one statewide rate applies everywhere. The harder questions are what is taxable, what is not, and what happens when you buy from an out-of-state seller who charges you nothing.
This guide sets out the rate, the exemptions and taxable items as the Division of Taxation lists them, the reduced rate in Urban Enterprise Zones and Salem County, the few places with an extra local levy, use tax, and who has to collect. It uses the Division's own pages and bulletins read on 2 November 2026. The Division's Sales Tax Guide (bulletin S&U-4) is the revision dated July 2022, so for any item you are unsure about, check the current wording with the Division.
The Division of Taxation's rates page states: "New Jersey has a single rate sales tax for the entire State." The Division's Use Tax FAQ gives the rate as 6.625% on purchases made in 2018 and after. The rate was cut from 6.875% to 6.625% effective 1 January 2018, and the Division's rates page (last updated 30 April 2025) lists no later change.
Because the rate is the same in every town, a New Jersey receipt does not need a ZIP-code lookup the way a Texas or California one does. There are a few narrow exceptions where extra levies or a reduced rate apply, covered below.
We found no change to the 6.625% rate in the Division's list of 2026 tax law summaries, a page last updated 24 February 2026, so laws signed after that date may not appear there. The entries there that touch sales tax are a $3 per day surcharge on hotel occupancies in Newark from 1 January 2026 (not itself subject to sales tax) and a separate wholesale excise tax on intoxicating hemp beverages, signed on 12 January 2026. Rate proposals can be introduced at any time, so confirm on the Division's page before relying on the rate for a large transaction.
The Division's Sales Tax Guide says the Sales and Use Tax Act taxes retail sales of tangible personal property, specified digital products and certain services, and that exempt items include most food sold as grocery items, most clothing and footwear, disposable paper products for household use, prescription drugs and over-the-counter drugs. The tables below follow the Guide; its lists are not meant to be all-inclusive.
| Item | Treatment | Detail from the Division |
|---|---|---|
| Grocery food from a food store | Exempt (most items) | Food that can be bought with SNAP benefits is also exempt |
| Candy and soft drinks | Taxable | Unless bought with SNAP benefits; milk drinks and drinks with more than 50% juice are not soft drinks |
| Prepared food (restaurant meals, heated food, food sold with utensils) | Taxable | Heated by the seller, combined by the seller into one item, or sold with eating utensils |
| Clothing and footwear | Exempt | Not fur clothing, accessories or equipment, sport or recreational equipment, or protective equipment (unless needed for daily work) |
| Prescription and OTC drugs | Exempt | Grooming and hygiene products such as shampoo, toothpaste and sunscreen are not covered by the OTC drug exemption |
| Newspapers | Exempt | Books are taxable, in print or electronic form |
| Specified digital products (downloaded audio, video, books) | Taxable | Streaming is not a specified digital product |
| Recreational cannabis | Taxable | Medical cannabis not taxable since 1 July 2022 |
| Investment metal bullion and certain investment coins | Exempt | For retail sales made on or after 1 January 2025 |
Delivery charges follow the item: the Guide says sales tax is imposed on charges for delivery of taxable property or services, and is not imposed on delivery charges for nontaxable items such as clothing.
If a manufacturer issues a coupon and the seller is reimbursed, the tax is due on the full regular price of the item; a store's own coupon, with no reimbursement, reduces the taxable receipt.
New Jersey taxes only the services it lists, and many common ones are exempt. From the Division's list of common services in the Sales Tax Guide:
| Taxable | Exempt |
|---|---|
| Landscaping services | Barber shop services |
| Car washing | Moving services |
| Appliance repairs | Internet access charges |
| Catering services | Interior design |
| Parking, storing or garaging a motor vehicle (at most facilities) | Participant sports admissions (bowling, swimming) |
| Spectator sports admissions | Dry cleaning of clothing |
Short-term rentals of rooms, houses and similar lodging for guests on a transient basis are treated like hotel occupancies: the Guide says property owners who provide transient accommodations are required to collect and remit sales tax and certain occupancy fees, and must register with the State.
The tax on a taxable purchase is the price times 6.625%, or 3.3125% where the Urban Enterprise Zone rate applies. These figures are our arithmetic on the Division's rates, not official calculations.
| Taxable price | Tax at 6.625% | Tax at UEZ rate 3.3125% |
|---|---|---|
| $400 | $26.50 | $13.25 |
| $800 | $53.00 | $26.50 |
| $2,000 | $132.50 | $66.25 |
| $4,000 | $265.00 | $132.50 |
The Division's own use tax example: a New Jersey resident buys a pool table for $3,000 plus $50 shipping from an out-of-state company that charges no sales tax, delivered to the home. The purchaser owes use tax of $202.06 ($3,050 x 0.06625). Its second example is a $4,000 desk bought in Maine at 5.5% sales tax: the difference, $45, is due to New Jersey.
Our own example of the credit rule: an $800 taxable item bought and received in a state that charges 4% and allows a similar credit. New Jersey tax would be $53.00, the other state's tax was $32.00, so use tax is $21.00. If the same item were delivered to New Jersey instead, no credit is allowed for the other state's tax.
An Urban Enterprise Zone (UEZ) is a distressed area within a New Jersey municipality or group of municipalities. The Division says the exemption lets certified sellers charge half the State Sales Tax rate on exempt sales, and states the current UEZ rate is 3.3125%. Only certified sellers can do this; a business must be certified, and customers get the lower rate on many purchases at those businesses.
The Sales Tax Guide adds the delivery condition: the purchaser must place the order in person at the seller's place of business in the zone, and the purchaser must accept delivery at that place of business or the seller must deliver from its zone location. The rate does not apply to recreational cannabis: the Division's 2023 law summary says retail sales of recreational cannabis and cannabis products sold in a UEZ are subject to the full sales tax rate.
Certain sales made by businesses located in Salem County are also taxed at half of the regular rate, which the Division gives as 3.3125%. The Guide excludes, among other things, mail-order, catalog or internet sales, and requires the sale to be made in person from a place of business.
The Division lists the UEZ rate at 3.3125% on a page last updated 27 October 2025. If a store advertises UEZ pricing, check that the sale meets the in-person rule; you cannot get the lower rate on an online order.
The Division's Use Tax FAQ says use tax is owed by New Jersey residents and businesses that buy products out of state, online or via the mail and bring them to New Jersey or have them shipped here. You owe it if you bought a taxable item or service outside New Jersey and either paid no sales tax or paid a lower rate than New Jersey's. The use tax rate is the same as the sales tax rate.
The Guide says every New Jersey business selling taxable items or services must collect and remit sales tax when the sale is completed by delivery to a New Jersey location or performance of the service in the state, and the tax must be separately stated on the receipt. A business must register with the State on Form NJ-REG at least 15 business days before starting business. Buyers with a valid exemption certificate, such as the Resale Certificate (Form ST-3), can buy without paying tax under the certificate's conditions.
Beyond the state rate the Guide describes these local levies, in addition to what the statewide rate page shows: the Atlantic City Luxury Tax on certain rentals, sales and services in Atlantic City, and a 2% Cape May County Tourism Sales Tax on predominantly tourism-related sales in Wildwood, Wildwood Crest and North Wildwood. Hotel stays in Newark also carry the $3 per day surcharge noted above.
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