The sales tax in New Jersey is 6.625% on most goods and many services. Certified businesses located in one of the state’s 37 Urban Enterprise Zones can charge a reduced rate of 3.3125% on qualifying in-person sales, and everyday necessities like clothing, unprepared groceries, and prescription drugs are exempt from sales tax entirely.
The 6.625% Statewide Rate
New Jersey’s Sales and Use Tax applies at a flat 6.625% to the retail sale, rental, or use of most tangible goods and many services across the state.1New Jersey Division of Taxation. ANJ-7 New Jersey Use Tax The rate has been in place since January 1, 2018, when it dropped from 6.875%. There are no county or city add-ons, so what you see on a receipt in Newark is what you see in Cape May.
The 3.3125% Urban Enterprise Zone Rate
To encourage economic activity in specific communities, New Jersey lets qualified businesses inside designated Urban Enterprise Zones charge half the statewide rate — 3.3125% — on most sales of tangible goods.2NJ.gov. Urban Enterprise Zone Tax Certificates There are 37 participating municipalities, including Newark, Camden, Trenton, Jersey City, Paterson, and Elizabeth.3NJ.gov. Urban Enterprise Zone UEZ Locations
The reduced rate only shows up at checkout if two conditions are met. The business must hold a valid UZ-2 certificate from the Division of Revenue and Enterprise Services, and the sale has to be an in-person purchase at the certified store’s physical location inside the zone.2NJ.gov. Urban Enterprise Zone Tax Certificates Online orders and anything shipped from outside the zone are charged the full 6.625%.
What Is Taxable
The 6.625% rate applies broadly to physical products — electronics, furniture, appliances, and most other tangible goods you’d buy for personal use. Motor vehicles are taxable too, but New Jersey lets you deduct the value of a qualifying trade-in before calculating the tax, so you pay only on the net purchase price. The trade-in and the purchase have to happen in the same transaction.4Legal Information Institute (LII). N.J. Admin. Code 18:24-7.4 – Computation of Tax on Purchase Price
Several categories of services carry sales tax as well:
- Telecommunications, including mobile phone plans, landline service, and data charges.
- Maintenance and repair work, covering both the labor and the parts used.
- Landscaping, lawn care, and tree trimming.
- Monthly security and alarm monitoring fees.
Prepared Food and Restaurant Meals
All prepared food is taxed at 6.625%, whether you eat in, take it out, or buy from a food truck.5NJ.gov. Restaurants and New Jersey Taxes Food counts as prepared if the seller sells it hot, combines two or more ingredients into it, or hands it over with utensils like plates, forks, or napkins.6NJ.gov. Sales of Prepared Food by Food Service Providers Food that a seller only cuts, repackages, or pasteurizes is not prepared and stays exempt.
Digital Products
Specified digital products are taxable when they’re electronically transferred to you. That covers digital audiobooks, music downloads, e-books, and digital movies or TV shows you purchase and download, along with any code that gives you the right to download one of them.7NJ.gov. Specified Digital Products and New Jersey Sales Tax Digital photographs and digital magazines are not included. Streaming video services and broadcast programming also sit outside the definition.
What Is Exempt
New Jersey carves out several categories of everyday purchases from sales tax. These exemptions apply automatically at the register; you don’t need to show anything or file anything to get them.
Clothing and Footwear
Most clothing and shoes are fully exempt, with no price cap.8Justia. New Jersey Revised Statutes Section 54:32B-8.4 – Clothing, Footwear, Exemption From Tax; Definitions Everyday wear, work boots, wedding dresses, sneakers, and sleepwear all qualify.9Legal Information Institute (LII). N.J. Admin. Code 18:24-6.3 – Exempt Sales of Clothing and Footwear The exemption does not reach fur clothing, accessories like handbags and jewelry, sport or recreational equipment, or protective gear such as hard hats and safety goggles.
Groceries
Food and food ingredients bought for home consumption are exempt — raw produce, bread, meat, dairy, canned goods, and the rest of the usual grocery list.6NJ.gov. Sales of Prepared Food by Food Service Providers The moment a seller heats the food, combines ingredients into a ready-to-eat meal, or hands you utensils with it, the full 6.625% applies.
Medications and Medical Equipment
Prescription drugs, over-the-counter medications, and diabetic supplies are all exempt. So are prosthetic devices, durable medical equipment for home use like wheelchairs and hospital beds, mobility-enhancing equipment sold by prescription, and medical oxygen. Replacement parts for any of these items are tax-free as well.10Justia. New Jersey Revised Statutes Section 54:32B-8.1 – Exemption for Certain Medical Supplies, Equipment; Definitions
Professional Services
Fees for professional services are not taxed in New Jersey. That includes legal advice, accounting, medical care, and architectural work.11NJ.gov. New Jersey Sales Tax Guide The distinction matters, because many other kinds of service labor — repairs, landscaping, telecommunications — are taxable. A visit to a lawyer, doctor, or CPA won’t carry sales tax.
Use Tax on Out-of-State Purchases
Buying from an out-of-state retailer doesn’t automatically mean no New Jersey tax. If a seller doesn’t charge New Jersey sales tax on a taxable item, or charges a lower rate than 6.625%, you owe a matching “use tax” to make up the difference.1New Jersey Division of Taxation. ANJ-7 New Jersey Use Tax Residents report use tax on Line 51 of the NJ-1040 income tax return, using Worksheet K to calculate it.12NJ.gov. 2025 NJ-1040 Instructions Even if you don’t owe anything, you still have to enter “0.00” on that line.
Online Orders and Marketplace Sellers
Most online purchases shipped to New Jersey already have the 6.625% tax built in at checkout. Out-of-state sellers must register and collect once they cross either $100,000 in gross sales of taxable goods, digital products, or services delivered into New Jersey, or 200 or more separate sales delivered into the state, in the current or prior calendar year.13NJ.gov. Remote Sellers Hitting either threshold triggers the obligation.14NJ.gov. Remote Sellers Frequently Asked Questions
Marketplace platforms like Amazon and eBay have carried their own collection duty since November 2018, and they must collect and remit New Jersey sales tax on every sale made through their platform, even when the individual seller is already registered.15NJ.gov. Sales Through a Marketplace If a sale slips through without tax, use tax fills the gap on your state return.