New Jersey's sales tax is 6.625%, and it has been since January 1, 2018. That's the rate to enter for most taxable purchases. Certain in-person sales in Urban Enterprise Zones and Salem County are taxed at half, 3.3125%.
Some purchases aren't taxed at all. Most clothing is exempt, and so is most food from a food store, says the New Jersey Division of Taxation.
What 6.625% adds to everyday purchases
Enter the pre-tax price with 6.625%, and the calculator returns the tax and the total:
Here's the standard rate on five typical buys:
| Purchase | Price | Tax at 6.625% | Total |
|---|---|---|---|
| Restaurant dinner | $80 | $5.30 | $85.30 |
| Headphones | $200 | $13.25 | $213.25 |
| Laptop | $1,200 | $79.50 | $1,279.50 |
| Sofa | $2,400 | $159.00 | $2,559.00 |
| New car | $50,000 | $3,312.50 | $53,312.50 |
At 6.625%, the tax often ends in a fraction of a cent. On $100 the exact tax is $6.625, and the calculator rounds it to $6.63. Older receipts may show more: the rate fell from 6.875% to 6.625% on January 1, 2018.
Where you pay half: UEZ sellers and Salem County
Since January 1, 2018, sellers authorized to charge the reduced rate must collect 3.3125% on qualifying sales. That's half of 6.625%. Two groups of sellers can use it, and both need you there in person.
Urban Enterprise Zones
The state set up these zones in a number of economically distressed cities. In them, businesses holding a UZ-2 certificate may charge half the regular rate on qualifying goods. You must place the order in person at the seller's place of business in the zone. Then you collect it there, or the seller delivers it from that zone location.
Salem County
Certain sales by businesses located in Salem County are taxed at half the regular rate too. The sale must be made in person at the seller's store. The Division lists many exclusions, including motor vehicles, alcoholic beverages, cigarettes, services, prepared food and internet or mail-order sales.
| A $2,400 sofa bought from | Sales tax | Total |
|---|---|---|
| Any store, at 6.625% | $159.00 | $2,559.00 |
| A certified UEZ seller or a Salem County store, in person, at 3.3125% | $79.50 | $2,479.50 |
| The same store's website, at 6.625% | $159.00 | $2,559.00 |
Buying in person at a half-rate store saves $79.50 on the sofa. Order it from the same store's website and the full 6.625% applies.
Clothing is tax-free, but not everything you wear
Under the Division's guide, clothing and footwear for human use are exempt. The exemption doesn't cover fur clothing, accessories, or sport and recreational equipment. Protective equipment is taxed too, unless you need it for your daily work. Here's how the Division's own examples play out on one receipt:
| One back-to-school receipt | Price | Sales tax |
|---|---|---|
| Winter coat: clothing, exempt | $120 | $0.00 |
| Sneakers: footwear, exempt | $80 | $0.00 |
| Cleated athletic shoes: sport equipment, taxed | $80 | $5.30 |
| Backpack: accessory, taxed | $48 | $3.18 |
Only the cleated shoes and the backpack are taxed: $128 of the $328 bill. So the receipt carries $8.48 of tax, not the $21.73 that 6.625% of the whole bill would be.
Groceries, candy and medicine
Most food and drink bought in a food store isn't taxed. Candy and soft drinks are taxed, though, and so is prepared food. Restaurant meals are taxed, but a tip isn't when it's stated separately and paid in full to the staff.
Prescription and over-the-counter drugs for human use are exempt if the label identifies the product as a drug.
Coupons: whose coupon it is changes the tax
A store coupon lowers the taxed price, so you pay tax only on the discounted amount. A manufacturer's coupon works differently when the store is reimbursed for it. Then the tax is due on the full regular price.
Take $16 off an $80 item. With a store coupon, you pay tax on $64: $4.24. With a manufacturer's coupon, it's $5.30, on the full $80. Work out the discounted price first with the discount calculator.
Buying a car in New Jersey
Electric cars no longer escape the tax. P.L.2024, c.19 repealed the exemption for zero emission vehicles, phasing it out over nine months. Sales from October 1, 2024, to June 30, 2025, were taxed at 3.3125%. Since July 1, 2025, the rate is the full 6.625%.
New passenger cars can also carry a one-time 0.4% surcharge. It applies at a sales or lease price of $45,000 or more, or under 19 miles per gallon. The Motor Vehicle Commission imposes it; the Division of Taxation doesn't administer it. On the $50,000 car in the first table, that's $200 on top of $3,312.50 in sales tax. To see what the total does to a monthly payment, try the auto loan calculator.
Working back from a New Jersey receipt
Only have the total? Divide it by 1.06625. A $213.25 receipt, for example, came from a $200.00 purchase:
That leaves $13.25 of tax, 6.21% of the total. It's the same 6.21% the calculator lists under "As a share of the total." Taking 6.625% off $213.25 lands on $199.12, 88 cents low. At a half-rate store, divide by 1.033125 instead.
No tax charged? New Jersey's use tax
Pay no sales tax on a taxable item, and the Division's guide says you owe 6.625% use tax. Use tax also applies when another state's sales tax was lower than New Jersey's. It's due at New Jersey's rate, with a credit for the sales tax you paid there.
Individuals report it on Form ST-18 within 20 days of bringing the item in, or on the NJ-1040 resident return. For another state's rate, use the sales tax calculator.
Sources
- New Jersey Division of Taxation, Tax Topic Bulletin S&U-4: New Jersey Sales Tax Guide (Rev. 07/22)
- New Jersey Division of Taxation, Urban Enterprise Zone/Salem County Businesses (last updated May 16, 2025)
- New Jersey Division of Taxation, ANJ-7: Use Tax in New Jersey (Rev. 5/25)
- New Jersey Division of Taxation, Zero Emission Vehicles Exemption (last updated April 25, 2025)
- New Jersey Division of Taxation, Luxury and Fuel-Inefficient Vehicle Surcharge (last updated September 22, 2025)