One state rate, almost no local additions
New Jersey is unusual among the big states: the sales tax is 6.625% everywhere, with no county or city on top. What varies is what the rate applies to — and in the state's Urban Enterprise Zones it is cut in half. This calculator adds the rate to a price.
The formula
Worked example: $100
- Tax: $6.63
- Total: $106.63
What is taxed and what is not
| Purchase | Rate | Tax on $100 |
|---|---|---|
| General goods, restaurant meals, electronics | 6.625% | $6.63 |
| Clothing and footwear (most) | exempt | $0 |
| Groceries, prescription drugs | exempt | $0 |
| Qualifying purchases in an Urban Enterprise Zone | 3.3125% | $3.31 |
| Vehicles | 6.625%, plus a luxury surcharge above $45,000 | $6.63 |
The clothing exemption is the one shoppers from New York and Pennsylvania cross the river for: a $200 coat is taxed $17.75 in Manhattan and nothing in Paramus. Fur, accessories and sports equipment are taxed; ordinary clothing is not.
Urban Enterprise Zones
Thirty-two designated zones — Newark, Jersey City, Camden, Trenton, Elizabeth among them — let qualified retailers charge half the state rate on most goods bought in person. The seller must be certified; buying online from a zone address does not qualify. On a $2,000 television the difference is $66.
Online purchases
Out-of-state sellers with more than $100,000 of New Jersey sales or 200 transactions collect the 6.625% at checkout. For anything bought without tax, use tax at the same rate is due on the NJ-1040 — a line most residents leave blank.
What this calculator leaves out
The UEZ half rate, exemptions, the luxury vehicle surcharge, and the difference between a manufacturer's coupon (taxed on the full price) and a store discount (taxed on the reduced price).
Related calculators
- Sales tax calculator — any rate, any state
- New York income tax — the neighbour with the 8.875% city sales rate
- Discount calculator — the price the tax applies to