This blog was last updated on December 22, 2025
New Jersey imposes a statewide sales and use tax rate of 6.625%. The state allows some cities to impose motor vehicle rental tax and there is one district sales tax for Kapkowski Road Landfill Reclamation District Project. Businesses should monitor New Jersey sales tax rates closely to ensure accurate compliance.
What’s Taxable in New Jersey?
New Jersey sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state, following New Jersey sales tax rules.
Examples of taxable items include:
- Prewritten computer software
- Books
- Clothing accessories and equipment
- Telecommunication services
- Cosmetics and non-prescription personal care products
Sales Tax Nexus in New Jersey
A seller is liable to collect and remit New Jersey sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or New Jersey economic nexus presence.
NJ: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of New Jersey.
NJ: Economic Nexus
New Jersey enforces economic nexus for remote sellers. If your business has:
- Over $100,000 in sales, or
- More than 200 transactions in New Jersey during the preceding or current calendar year;
you may be required to register for and collect New Jersey sales tax.
New Jersey Sales Tax Exemptions
Certain sales are generally exempt from New Jersey sales tax rules and regulations.
Exempt Products and Services
- Most services (unless New Jersey statutes specify otherwise)
- Clothing
- Food and food ingredients
- Drugs and over-the-counter drugs (with or without a prescription)
- Prosthetic devices
- Software as a Service (SaaS)
Entity or Use Based Exemptions
Additionally, New Jersey exempts sales to certain entities from the sales/use tax, including the following:
- Certain qualified nonprofit entities
- 501(c)(3) organizations
- Churches and houses of religious worship
- Nonprofit schools, hospitals and homes for children and aged persons
- Certain wholesalers
- Retailers selling for resale
- Manufacturers
- Schools
- Government
How to Claim Sales Tax Exemption in New Jersey
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form ST-3NR (Resale) and Form ST-4 (Exempt Use) as the most commonly used forms.
Additional guidance on acceptable exemption formats can be found in New Jersey Tax Topic Bulletin S&U-6.
New Jersey Filing and Remittance Requirements
New Jersey offers multiple methods for filing and remitting sales and use tax:
- E-filing through New Jersey Tax Portal
- Simplified Electronic Return (SER) for SST participants and their affiliates
- Paper filing:
- ST-18 – Use Tax
Some sellers must also make monthly payments. You must make monthly payments only if you:
- Collected more than $30,000 in Sales and Use Tax in New Jersey during the prior calendar year; and
- Collected more than $500 in the first and/or second month of the current calendar quarter.
Frequently Asked Questions
Does New Jersey have a sales tax holiday?
No, New Jersey does not currently offer sales tax holidays
Are charges for demolition services subject to tax in New Jersey?
No. Charges for demolition services are not subject to tax.
Are charges for debris removal services subject to tax in New Jersey?
Yes. Debris removal services are servicing or maintaining real property and, as such, the charges are subject to tax.
Is the construction of a garage subject to tax in New Jersey?
No. The construction of a garage is an exempt capital improvement and as such the charges are not subject to tax. The property owner must issue the contractor a fully completed Certificate of Exempt Capital Improvement (Form ST-8) to document this exemption.
Can I use the Simplified Electronic Return (SER) in New Jersey if I’m not in the SST Model 1 program?
Yes. New Jersey accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
How to Register for a New Jersey Sales Tax License?
New Jersey businesses or individuals selling tangible personal property or certain services to New Jersey consumers may need to register to collect sales tax when meeting qualifying requirements. More information may be found here.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
State-by-State Sales Tax Guide
Looking for an easier way to manage sales tax in New Jersey and beyond? Learn how Sovos simplifies compliance.