New Jersey's sales tax system is one of the more straightforward in the nation, featuring a single, statewide rate with no additional local sales taxes. This makes calculating the final cost of a purchase simple and predictable, no matter where you are in the state. Our New Jersey Sales Tax Calculator is designed to provide a quick and accurate calculation of the tax on your purchase, helping you budget for expenses and understand the total cost of goods and services in the Garden State.
How to Use the New Jersey Sales Tax Calculator
Calculating your sales tax is as simple as possible:
- Enter the Pre-tax Amount: Input the price of the item or service before any taxes are applied.
- Calculate Your Total: Click the "Calculate" button to instantly see the sales tax amount and the final, out-the-door price of your purchase based on New Jersey's statewide rate.
Understanding New Jersey's Sales Tax
Unlike states with complex layers of local and district taxes, New Jersey applies one uniform rate across the board.
The Statewide Rate
The current state sales tax rate in New Jersey is 6.625%. This rate applies to the retail sale, rental, or use of most tangible personal property and certain specified services within the state. The revenue generated from this tax is a primary source of funding for state programs and services.
Urban Enterprise Zones (UEZs)
One important exception to the statewide rate is the Urban Enterprise Zone (UEZ) program. This program is designed to stimulate economic growth in designated urban areas. Businesses located within a UEZ that have been certified by the state are allowed to charge a reduced sales tax rate, which is currently 3.3125% (half of the standard rate), on certain purchases. To receive the reduced rate, customers must make the purchase in person at the business's location within the zone.
What Is Subject to Sales Tax in New Jersey?
In New Jersey, sales tax is generally applied to the sale of tangible personal property and a specific list of enumerated services.
Common Taxable Items:
- Most physical goods like furniture, electronics, and appliances.
- Restaurant meals and prepared foods.
- Admissions to events like concerts, movies, and sporting events.
- Certain services, including lawn care, landscaping, and non-essential vehicle services.
Common Non-Taxable Items:
- Most Clothing and Footwear: One of New Jersey's most notable exemptions is that most articles of clothing and footwear are not subject to sales tax.
- Most Food Items: Unprepared food items sold in grocery stores are generally exempt. This includes produce, dairy products, meat, and pantry staples.
- Prescription and Over-the-Counter Drugs: Most medications, both prescription and non-prescription, are exempt from sales tax.
- Household Paper Products: Items like paper towels, napkins, and toilet paper are also exempt.
- Professional Services: Most professional services, such as medical, legal, and accounting services, are not taxed.
Frequently Asked Questions About New Jersey Sales Tax
Are there any local sales taxes in New Jersey?
No. New Jersey is one of the states that does not permit local jurisdictions like cities or counties to levy their own separate sales taxes. The 6.625% rate is uniform across the state, with the exception of the reduced rate in designated Urban Enterprise Zones (UEZs).
Is sales tax charged on online purchases in New Jersey?
Yes. Online retailers who sell to New Jersey residents are required to collect and remit the 6.625% sales tax on taxable items, regardless of where the company is physically located. This ensures a level playing field between online sellers and local brick-and-mortar stores.
Is sales tax applied to the price before or after a coupon is used?
Sales tax is always calculated on the final selling price after all discounts and coupons have been applied. If you use a coupon that reduces the price of a $50 item to $40, you will only pay sales tax on the $40 final price.
Are services for home repairs taxed?
It depends. Services to install, maintain, or repair tangible personal property are generally taxable. However, capital improvements to real property (your home) are not. For example, repairing a leaky faucet is a taxable service, but installing a brand-new bathroom sink (a capital improvement) is not.