New Jersey Sales Tax

For those who operate in or do business in New Jersey, the sales tax in the state is relatively straightforward with a single flat rate for the entire state. There are no local sales tax rates to consider. Because of this simplicity, those with nexus or who operate solely in New Jersey have fewer hurdles than in some other states.

To ensure you have the information needed for acquiring a permit, collecting sales tax, and remitting payment to the State of New Jersey, we will discuss each aspect of the sales tax system in this state in the following guide

New Jersey Sales Tax Rates

The State of New Jersey has a flat sales tax rate of 6.625% with no local or municipal taxes. The state does not allow local municipalities to charge these taxes.

In New Jersey, there are 32 Urban Enterprise Zones (UEZ) designated by the state for sales tax relief. These economically depressed areas allow some physical goods to be exempted from sales tax under certain conditions. See this page on the NJ website for more details.

Some in-person sales of tangible personal property is taxed at half the normal rate in Salem County, but this does not apply to online sales.

Tax Sourcing

New Jersey is a destination-based state for all sellers. This means that you charge the same rate on any order picked up within the state of New Jersey, or shipped to a New Jersey-based address.

New Jersey Nexus

Physical Nexus

Businesses with a physical presence in New Jersey are subject to collecting the 6.625% sales tax rate. This physical nexus can be identified if any of the following situations is true of your business:

• Any physical or tangible goods are stored in a warehouse in the state
• If you have any independent contractors, representatives or employees in the state
• If you have an office or other place of business located in the state
• If you deliver merchandise to individuals in New Jersey
• If you perform repair, maintenance, or installation services in New Jersey

New Jersey has a Nexus questionnaire you can complete on their website that will help you determine if any of the above applies to you and if you need to acquire a permit.

If you participate in the Amazon FBA program and your inventory is stored in the state, you will have physical nexus. This is true for any third-party warehouse in New Jersey where your goods are stored.

Economic Nexus

New Jersey has an economic nexus law similar to most other states requiring out-of-state sellers to register to collect and remit sales tax if they reach a threshold of $100,000 in sales or 200 or more separate transactions in the current or previous calendar year into New Jersey.

If you sell solely through online marketplaces and you reach the sales tax nexus threshold, you must register, but you can request non-reporting status. If you sell through online marketplaces and also direct, then you should count sales from both sources when determining whether you’ve reached the threshold.

If you are a remote seller, you can find guidance on this page of the New Jersey Division of Taxation website.

Marketplace Facilitators

Marketplace Facilitators must register and remit sales tax on behalf of their sellers within the state of New Jersey.

What is Taxable in New Jersey?

Sales tax applies to most tangible goods in New Jersey and few services, though there are exceptions to both of these provisions depending on the industry and situation. Here is a brief summary of what is taxable in the state:

Tangible Goods

Almost all physical goods are subject to sales tax in New Jersey with a handful of exceptions depending on the type of good being sold.

If you purchase an item from outside the state of New Jersey and bring it into the state you may be responsible for paying the use tax on that item directly if it was not collected by the merchant.

Food and food ingredients, dietary supplements, certain non-sugary beverages, prescription drugs, over-the-counter drugs, and medical equipment are all exempt from sales tax. A number of goods that might be in this category may have sales tax applicable, however, so it is recommended that you review the full list of taxable and exempt goods in New Jersey’s Bulletin S&U-4.

Services

Sales tax on many services is taxable in New Jersey. Laundering and dry cleaning on non-clothing items are taxable, but the same services for clothing are non-taxable. Floor covering and installation services and landscaping services are all taxable, as is information services. Many maintenance and repair services are also taxable.

Shipping and Handling

Shipping and handling charges are taxable in the state of New Jersey. Shipments that contain both taxable and non-taxable items should have sales tax added for an appropriate portion of the total shipping and handling charges based on either the weight or total cost of the taxable goods included.

Digital Goods and Services

Digital products such as digital audio works, digital audio-video works, and digital books delivered electronically are subject to sales tax. Streaming or access-only versions of the same goods are not taxable. Certain other electronically-delivered items are not taxable, such as digital photographs and some e-publications.

Exemptions

Certain purchases may not be subject to sales tax. This includes business purchasing wholesale goods for the purpose of resale, as well as many educational, civic, religious, and social organizations. For the sales tax to be waived, sellers must obtain proof of exemption from the purchaser via one of the following forms: ST-3, ST-4, ST-5, or SSUTA certificate. The seller should be able to present this proof if requested by the state.

Sales Tax Holidays

New Jersey does not have a current sales tax holiday. In 2022 and 2023, the state had a tax holiday on school supplies, but it has since been repealed.

Registration and Filing

Registration for a sales tax permit in New Jersey is required if you are considered to have nexus and must collect tax for sales made there. Those who have economic nexus must register in the calendar year in which they reach the required threshold. However, if your economic nexus is solely through marketplaces, you must register but can request a non-reporting status.

You can register online from the Business Formation page.

There is no fee to file either of these in the State of New Jersey, and while the information required goes beyond a standalone sales tax permit, it allows businesses to register and acquire their permit together.

Filing Frequencies and Deadlines

New Jersey’s Division of Taxation has an online portal through which sales tax can be paid. The state requires all sales and use tax to be paid online through their electronic portal, though you can obtain Form ST-50 or ST-51 for review.

Technically, all sellers who file directly with the state have a quarterly filing frequency. Sales tax returns are due on the 20th day of the month following the end of a quarter, and filed via Form ST-50. However, if you collected more than $30,000 in sales tax in the prior calendar year, and if you’ve collected more than $500 in the first and/or second month of a reporting period, you are required to make monthly payments via Form ST-51.

Period	Due Date
January – March (Q1)	April 20
April – June (Q2)	July 20
July – September (Q3)	October 20
October – December (Q4)	January 20

Notes

When filing electronically, the earliest settlement date that can be selected is the next business day. Returns are considered “on time” as long as the payment is initiated by the deadline, even if the settlement is after the due date.

If a due date falls on a weekend or legal holiday, the sales tax return and payment are due on the following business day.

If no taxable sales were made within a given period by a business with a sales tax license, a zero-dollar return is required. The same deadlines apply. A monthly voucher is not required.

Sellers using a Streamlined Sales Tax Certified Service Provider such as AccurateTax will file and pay monthly.

Penalties and Interest

In the case of late quarterly returns and/or unpaid taxed, New Jersey may assess interest, a late filing penalty, and/or a late payment penalty.

Interest is charged on late payments at a rate of 3% over the Prime Rate, compounded annually. At the end of the calendar year, any tax, penalties, and interest that are still unpaid are added into the balance for future interest calculations.

A failure to make a timely payment when you have filed a return on time may result in a 5% late filing penalty assessed on the total amount of tax due. The penalty is assessed for each full or partial month that the return is not filed, for a maximum penalty of 25%. The state may also charge $100 for each month that the return is late.

Additionally, New Jersey may also charge a late payment penalty of 5% of the tax due.

For more information, refer to this page on the NJ website.

Resources

• New Jersey Sales Tax Guide
• State of New Jersey Division of Taxation Sales and Use Tax Homepage
• Online Portal for Paying Sales and Use Tax
• State of New Jersey Nexus Questionnaire

New Jersey Sales Tax Software

For those businesses that operate within the State of New Jersey or meet the economic nexus threshold, you may need help maintaining your sales tax compliance. Software that can help you calculate when and where to charge sales tax and how much the resulting collection should be is indispensable. Our TaxTools service offers a number of features such as data review, sorting, and more to help do this as efficiently as possible. To learn more about TaxTools and the time saving benefits it offers for sales tax collection, contact us today or sign up for a free trial.

Last updated August 2025