New Jersey Sales Tax 2023 - 2024
New Jersey Sales Tax is applied to most tangible products and some digital products. In addition to the base sales tax, local taxes may also apply.
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New Jersey sales tax is imposed on the sale of most physical goods and some services. New Jersey Sales Tax rate is 6.625%, and cities and towns may levy additional local taxes. Some services, such as health clubs, tanning salons, and laundry services, are also subject to the sales tax.
Companies that sell products in New Jersey must register and obtain a sales tax permit. They can do so by visiting the state’s business registration page. The state’s sales tax rules are complex, and it’s important to familiarize yourself with them before registering.
New Jersey Sales Tax Permit Registration
If you are an online seller, you must register for a sales tax permit in New Jersey. You must remit the tax you collect to the New Jersey Division of Taxation. The first step in registering is to determine whether you have nexus in the state. Nexus is the minimum amount of commercial activity that triggers sales tax liability in a given jurisdiction. This could be a physical location, such as a store or warehouse, an office, a distribution center, storage space, an employee, or a representative.
New Jersey State Use Tax
In addition to the regular sales tax, New Jersey has a state use tax. The state uses a “taxable service” definition that differs from other states. It includes both retail and wholesale services, as well as repair and installation services. New Jersey also requires sellers to collect sales tax on shipping charges for taxable items. A software can streamline this process by calculating when and where to charge sales tax. It can even automate the filing and remittance process for you.
New Jersey Sales Tax Exemption
Some goods are exempt from sales and use tax in New Jersey, including unprepared food, clothing, prescription and over-the-counter drugs, and durable medical equipment. Other goods, such as paper products and toilet paper, are subject to sales tax. New Jersey also has a number of sales tax holidays.
New Jersey Sales Tax Due Dates
New Jersey sales tax due dates vary depending on filing frequency. Generally, sales tax returns are due on the 20th day of the month following the reporting period. However, if the reporting period ends on a weekend or holiday, the return is due the first business day of the following month.
