Sales tax
New Jersey Sales Tax in 2026: The 6.625% Rate, Urban Enterprise Zones, Exemptions and Filing
New Jersey sales tax 2026: one 6.625% statewide rate, half-rate Urban Enterprise Zones, exempt clothing and groceries, taxable services, NJ-REG and ST-50 filing.
Edited by Sumeet YadavFounder & editor, MSMETOOLS · fact-checked against official sources
Contents (10)
- 1. One rate for the whole state
- 2. Urban Enterprise Zones: the half-rate program
- 3. What's exempt: clothing, food and other everyday goods
- 4. Which services are taxable
- 5. Worked examples in dollars
- 6. Registering to collect sales tax
- 7. Filing, paying and penalties
- 8. Remote sellers, marketplaces and use tax
- 9. Common mistakes and how to fix them
- 10. What to do next
If you sell goods or taxable services in New Jersey, or ship to customers there, this guide covers what you need for 2026. That means the single 6.625% rate and the two places it's halved, what's exempt (including most clothing and groceries), which services are taxed, how to register with Form NJ-REG, and how the quarterly ST-50 and monthly vouchers work. It also covers remote seller rules, penalties and the Division of Taxation's 2025–2026 guidance on tariffs, cash rounding and bullion. All figures were checked on the Division of Taxation's website in October 2026.
Quick answer
New Jersey's sales tax rate is 6.625% everywhere in the state, with no county or city add-ons. Certified sellers in Urban Enterprise Zones and in Salem County can charge half that, 3.3125%, on eligible in-person sales of goods. Most clothing, footwear and grocery food is exempt.
Register with Form NJ-REG at least at least 15 business days before you start selling
File Form ST-50 every quarter by the 20th of the following month
Monthly payments too if you collected more than $30,000 in NJ sales tax last year
Remote sellers register at more than $100,000 or 200 or more separate transactions into NJ
Repairs, installation, landscaping, gyms and many other services are taxable
One rate for the whole state
New Jersey is one of the few states with a single statewide sales tax rate. Counties and cities don't add their own sales taxes, so a sale in Newark carries the same 6.625% as a sale in Princeton or Atlantic City. The Division of Taxation notes that New Jersey ZIP codes run from 07001 to 08989, but you don't need a rate lookup by address the way you do in states like Georgia or Washington.
The rate has moved a few times. It was 6% until July 14, 2006, then 7% from July 15, 2006 through the end of 2016. It dropped to 6.875% for 2017 and to 6.625% from January 1, 2018, where it has stayed. If you're correcting old returns or handling an audit for those years, use the rate that applied on the date of the sale.
That simplicity doesn't mean every sale is taxed at the full rate. Two programs allow a reduced rate, and New Jersey has broad exemptions for clothing, food and some household goods. It also taxes more services than many neighboring states, which is where most small businesses get caught out.
Hotel and other transient accommodations are also taxed under the sales tax law, and some places and industries have extra occupancy or local fees on top. If you run a hotel or short-term rental, check those rules separately; this guide focuses on retail sales and services.
New Jersey sales tax at a glance (2026)
6.625%
Statewide rate
Since January 1, 2018
3.3125%
UEZ and Salem County rate
Eligible in-person sales only
more than $100,000
Remote seller threshold
Or 200 or more separate transactions
more than $30,000
Prior-year tax that triggers monthly payments
Urban Enterprise Zones: the half-rate program
An Urban Enterprise Zone (UEZ) is a designated distressed area within a municipality, created to bring shoppers and investment back to older commercial districts. The Department of Community Affairs runs the program and lists local zone coordinators in cities including Newark, Paterson, Passaic, Orange, North Bergen, New Brunswick, Pemberton and North Wildwood. The Urban Enterprise Zone Authority decides which businesses qualify.
Certified sellers in a zone get two main sales tax benefits. First, they can charge customers 3.3125%, half the regular rate, on most sales of tangible goods. Second, they can buy most items and services for their own business without paying sales tax, except motor vehicles, energy, telecommunications and utility services. The Division of Taxation also lists unemployment insurance benefits and access to loans and grants funded from zone sales tax.
The half rate comes with conditions that trip up new UEZ businesses. According to the Division's sales tax guide, the customer must place the order in person at the seller's place of business in the zone. The customer must then take delivery at that zone location, or the seller must deliver the goods from its zone location, not from a warehouse or store elsewhere. Online, phone and catalog orders get the full rate. Services, such as repairs, are also charged at the full rate.
Getting and keeping UEZ certification
A business applies online through the UEZ Business Certification System on the state's Premier Business Services portal. Once certified, it receives a UZ-2 certificate, files an annual report and must apply for recertification every three years. UEZ businesses also file a different return: Form UZ-50, monthly, by the 20th of the following month, instead of the ST-50 that other sellers file quarterly.
If your certification lapses, you lose the right to charge the reduced rate from that point. Charging 3.3125% without a valid certificate means you under-collected, and you owe the difference.
Salem County's reduced rate
Salem County, in the far southwest of the state, has its own reduced rate. Certain sales by businesses located there are taxed at half the regular rate, 3.3125%. Like the UEZ program, it applies only to retail sales of goods made in person from a place of business the seller regularly operates in the county, with delivery at that location or from it.
The Division lists what doesn't qualify: motor vehicles, alcoholic beverages, cigarettes, mail-order and internet sales, telephone sales, services such as repairs, prepared food and drinks, admissions and amusements, hotel and short-term rental occupancies, cannabis, and sales made from locations outside the county.
What's exempt: clothing, food and other everyday goods
New Jersey's exemptions are broader than most states'. The Division's sales tax guide lists most grocery food, most clothing and footwear, disposable household paper products, prescription drugs and over-the-counter drugs as exempt.
Clothing and footwear
Articles of clothing and footwear for human use are exempt from New Jersey sales tax. The definition is wide: inner and outer wear, coats, shoes and boots, hats, gloves, neckties, hosiery, costumes, swimwear, formal wear, diapers and adult incontinence products are all included. There's no price cap, so a $600 winter coat is as exempt as a $10 T-shirt.
Four kinds of items fall outside the exemption and are taxable at 6.625%:
- Clothing made of fur.
- Accessories and equipment, such as jewelry, handbags, wallets and watches.
- Sport or recreational equipment, such as ski boots, cleats, and items made for a specific sport rather than everyday wear.
- Protective equipment, unless it's necessary for the user's daily work.
Because New Jersey belongs to the Streamlined Sales and Use Tax Agreement, these categories follow standard national definitions. A clothing store's point-of-sale system should flag each product as exempt clothing, fur, accessory or sport equipment.
Food, candy and soft drinks
Food and food ingredients sold as groceries are exempt. Candy and soft drinks are not; they're taxable at the full rate, as are alcoholic drinks and dietary supplements. Prepared food, which includes food the seller heats, combines into a single item or serves with utensils, is taxable when sold by restaurants, delis and similar establishments. That means a grocery store has to sort its sales: a bag of apples is exempt, a chocolate bar and a bottle of soda are taxable, and a hot rotisserie chicken is prepared food.
Investment bullion and coins
Since January 1, 2025, a 2024 law has exempted sales of investment metal bullion, such as refined gold, silver, platinum and palladium valued for metal content, and investment coins with a fair market value of at least $1,000 each. Jewelry, artwork made from coins and commemorative medallions are still taxable.
Which services are taxable
New Jersey taxes the retail sale of goods, specified digital products such as downloaded music, movies and ebooks, prewritten software delivered electronically, and a wide list of services. The Division's rule of thumb is that most services performed on tangible personal property are taxable unless the law exempts them. That captures repairs to appliances, computers and cars, installation such as floor coverings, carpet cleaning, and janitorial cleaning.
| Service | Taxable? |
|---|---|
| Appliance, computer and car repairs | Yes |
| Janitorial and carpet cleaning | Yes |
| Landscaping and lawn mowing | Yes |
| Health club and gym memberships | Yes |
| Massage, tanning and tattooing | Yes |
| Storage space and storage services | Yes |
| Investigation, detective and armored car services | Yes |
| Telecommunications and alarm monitoring | Yes |
| Accounting, bookkeeping and architecture | No |
| Most advertising services | No |
| Barber and beauty salon services | No |
| Interior design | No |
The line between services matters for mixed businesses. A salon doesn't charge tax on a haircut but does on the shampoo it sells. A landscaper charges tax on lawn care. Delivery charges are part of the taxable sales price when the goods are taxable, so a delivery fee on a taxable sofa is taxed while delivery of exempt clothing is not.
Two 2025–2026 updates to know
Tariff mark-ups are taxable. The Division issued guidance in 2025 that when a seller passes on the cost of a federal tariff, the extra charge is part of the taxable sales price, even if the invoice shows it as a separate tariff line. A furniture store that adds a $150 tariff surcharge to a $1,500 sofa charges tax on $1,650.
Rounding cash sales after the penny. Because the U.S. Mint stopped making pennies in 2025, the Division published guidance in January 2026. Businesses may round a cash total to the nearest nickel, but only on the final total after tax, and only if they disclose the policy clearly beforehand. Sales tax is still due on the full price. A taxable $39.99 item carries tax on $39.99, whatever the customer finally hands over.
Worked examples in dollars
A laptop in Newark. A customer buys a $1,000 laptop from a store that isn't UEZ-certified. Tax at 6.625% is $66.25, for a total of $1,066.25.
The same laptop at a UEZ store in Paterson. The customer buys in person at a certified UEZ seller and carries it out. Tax at 3.3125% is $33.13, saving the customer $33.12. If the same store ships the laptop to an online customer, the full 6.625% applies.
A clothing store sale. A customer buys $80 jeans, a $120 pair of everyday boots and a $60 leather handbag. The jeans and boots are exempt clothing and footwear. The handbag is an accessory, so the tax is $60 × 6.625% = $3.98.
A convenience store basket. Bread, milk and eggs totaling $12 are exempt groceries. A $2.50 soda and a $1.50 candy bar are taxable, for $0.27 in tax.
Try it — New Jersey sales tax on a $1,000 purchase
Registering to collect sales tax
Anyone engaged in a business, trade, profession or occupation in New Jersey must register for tax purposes. You do that with the Business Registration Application, Form NJ-REG, filed online through the Division of Revenue and Enterprise Services, at least at least 15 business days before you start business or open an additional location. Corporations, LLCs, limited partnerships and limited liability partnerships also make a public records filing to form or register the entity. The requirement covers occasional sellers too: someone selling at flea markets or craft shows has to register.
From registration to your first return
- 1
File Form NJ-REG
Register online with the Division of Revenue and Enterprise Services at least 15 business days before your first sale.
Tip: Entities file the public records filing first or at the same time.
- 2
Set up taxable and exempt products
Flag exempt clothing, groceries and other exempt items, and taxable accessories, candy, soft drinks and services.
- 3
Collect exemption certificates
Take a fully completed Resale Certificate (ST-3), Exempt Use Certificate (ST-4) or Exempt Organization Certificate (ST-5) for every untaxed sale.
- 4
File and pay online
Filing and remitting sales taxFile ST-50 quarterly through the NJ Tax Portal, plus monthly vouchers if you're a monthly payer.
Show sales tax as a separate amount on every receipt or invoice; New Jersey requires it to be stated separately. When you sell to a business that's buying for resale, take its resale certificate. If it's fully completed, you're relieved of liability even if the buyer turns out not to qualify. Keep each certificate for at least at least four years after the last purchase it covers.
Filing, paying and penalties
Every registered seller files a quarterly return, Form ST-50, even if no tax is due. Returns and payments are due by 11:59 p.m. on the 20th of the month after the period: April 20, July 20, October 20 and January 20. If that date is a weekend or holiday, the deadline moves to the next business day. Returns must be filed electronically through the NJ Tax Portal, and payment must be electronic too, by e-check, electronic funds transfer or credit card (with a fee).
Larger sellers also pay monthly. If you collected more than $30,000 in New Jersey sales tax in the previous calendar year, you must send a Monthly Voucher payment for the first and second months of each quarter whenever that month's tax is more than $500, by the 20th of the next month. A voucher is payment only; the ST-50 still reports the whole quarter. If a month's tax is $500 or less, you skip the voucher and pay it with the ST-50. Sellers who collected $30,000 or less last year never file vouchers, whatever a single month's tax.
Take a seller that collected $45,000 last year. In January it collects $3,200, so it pays a $3,200 voucher by February 20. In February it collects $400, so no voucher; that $400 goes with the ST-50. The ST-50 due April 20 reports all three months and pays February's $400 plus March's tax.
Due dates for a monthly payer
February 20
January Monthly Voucher (if tax over $500)
March 20
February Monthly Voucher (if tax over $500)
April 20
Q1 ST-50 return for January–March
July 20
Q2 ST-50 return
October 20
Q3 ST-50 return
January 20
Q4 ST-50 return
Watch the settlement date on e-check payments. The portal's earliest settlement date is the next business day, so paying on the due date itself can make you late. Pay at least a day early.
Late returns and payments cost more than many owners expect. The late filing penalty is 5% of the tax due per month, up to 25%, and the Division can add $100 for each month the return is late. A late payment penalty of 5% of the tax due can apply on top, and interest runs at prime rate plus 3%, compounded annually. If a bill goes to the state's collection agency, a referral cost recovery fee is added; from June 15, 2026 it's 9.85%, down from 11%.
For example, a quarterly return showing $2,000 of tax filed and paid two months late could face a $200 late filing penalty (5% for each of two months), up to $200 in monthly charges, a $100 late payment penalty and interest. That's up to $500 plus interest on a $2,000 bill. If you can show reasonable cause for filing or paying late, you can ask the Division to waive part or all of the penalty.
New Jersey sales tax setup checklist
0/7Remote sellers, marketplaces and use tax
Out-of-state sellers with no physical presence must register, collect and remit New Jersey sales tax if, in the current or prior calendar year, their gross revenue from goods, digital products or taxable services delivered into New Jersey is more than $100,000, or they made 200 or more separate transactions. These rules have applied since November 1, 2018. Remote sellers register through the Division of Revenue and Enterprise Services using the "Register as Remote Seller Only" option, or through the Streamlined Sales Tax Registration System, since New Jersey is a full Streamlined member.
Marketplace facilitators collect and remit tax on every sale made through their marketplace, whether or not the individual seller passes the thresholds. A remote seller that's over the threshold but sells only through marketplaces still registers, and can then ask to be placed on a non-reporting basis with Form C-6205-ST. A seller that has its own website as well must collect on those direct sales.
Use tax is the other side of the coin. If a New Jersey business buys taxable goods or services without paying New Jersey sales tax, for example from an out-of-state seller below the threshold, it owes use tax at the same 6.625% rate. Registered businesses report it on the ST-50. UEZ businesses have their own purchase exemption, within the limits the Division sets.
Common mistakes and how to fix them
Charging the UEZ rate on everything. The half rate only applies to qualifying in-person sales of goods by a certified seller. Set your online store and service lines to the full 6.625%.
Treating all clothing as exempt. Fur, accessories and sports equipment are taxable. Review your product categories, especially for footwear and outerwear that might be sport-specific.
Not taxing services. Landscapers, cleaners, repair shops, gyms and storage businesses often start without collecting tax. If you've missed it, start charging now and talk to the Division about how to settle past periods.
Missing a zero return. An ST-50 is due every quarter, even with no sales. A missed return triggers penalties.
Losing exemption certificates. Without a completed certificate on file, an exempt-looking sale is treated as taxable in an audit.
Official links
- NJ Division of Taxation — Sales and Use TaxRules, topics and forms
- Filing and remitting sales taxST-50 and monthly vouchers
- Urban Enterprise ZonesReduced rate and UZ-50
- New Jersey Sales Tax Guide (S&U-4)Taxable and exempt items
- Remote sellersEconomic threshold and registration
- Penalties, interest and collection feesCurrent penalty rates
What to do next
Register with Form NJ-REG well before your opening date, then flag exempt clothing and groceries and taxable services in your system. Put the 20th of each quarter's following month in your calendar. Use the sales tax calculator to check invoices, and our how to calculate sales tax guide for tax-inclusive pricing. Selling across the river too? Compare the rules in our New York sales tax guide and Pennsylvania sales tax guide.
This is general information, not legal or tax advice — confirm on the official source or with a professional.
Frequently asked questions
New Jersey charges a single statewide sales tax rate of 6.625%, in effect since January 1, 2018. There are no county or city sales taxes added on top, so the rate is the same in Newark, Jersey City, Trenton or Cape May. The only lower rates are 3.3125% for qualified sellers in Urban Enterprise Zones and Salem County, on eligible in-person sales.
Qualified businesses certified in a New Jersey Urban Enterprise Zone (UEZ) can charge 3.3125%, half the regular rate, on most sales of goods. The customer must place the order in person at the zone location and take delivery there, or the seller must deliver from its zone location. Services, motor vehicles and some other items don't qualify.
No. Most clothing and footwear for everyday human use is exempt, including coats, shoes, costumes and diapers. The exemption doesn't cover clothing made of fur, accessories such as jewelry and handbags, sport or recreational equipment like ski boots or cleats, and protective equipment unless the user needs it for daily work.
Some are. New Jersey taxes most services performed on tangible property, such as repairs, installation and cleaning, plus listed services including landscaping, lawn mowing, massage, tanning, tattooing, gym memberships, storage, investigation and telecommunications. Professional services such as accounting, legal work, architecture and most advertising are generally not taxable.
File the Business Registration Application, Form NJ-REG, online through the Division of Revenue and Enterprise Services at least at least 15 business days before you start selling or open a new location. Corporations and LLCs also make a public records filing. Remote sellers above the threshold choose the remote-seller-only registration option.
Every registered seller files Form ST-50 quarterly, due by the 20th of the month after the period after each quarter: April 20, July 20, October 20 and January 20. If you collected more than $30,000 in New Jersey sales tax last year, you also pay by monthly voucher in the first two months of each quarter when that month's tax is more than $500.
Sources & verification
Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify
- 1.Rates and Boundaries — New Jersey Division of Taxation · accessed 9 October 2026
- 2.Sales and Use Tax — New Jersey Division of Taxation · accessed 9 October 2026
- 3.Urban Enterprise Zone — New Jersey Division of Taxation · accessed 9 October 2026
- 4.New Jersey Sales Tax Guide (Tax Topic Bulletin S&U-4) — New Jersey Division of Taxation · accessed 9 October 2026
- 5.Filing and Remitting Sales and Use Tax — New Jersey Division of Taxation · accessed 9 October 2026
- 6.Remote Sellers — New Jersey Division of Taxation · accessed 9 October 2026
- 7.Penalties, Interest, and Collection Fees — New Jersey Division of Taxation · accessed 9 October 2026
- 8.Sales Tax Treatment of Tariff Mark Ups — New Jersey Division of Taxation · accessed 9 October 2026
- 9.Cash Transaction Rounding Guidance Due to Penny Supply Changes — New Jersey Division of Taxation · accessed 9 October 2026
- 10.Exemption for Sales of Certain Investment Bullion and Investment Coins — New Jersey Division of Taxation · accessed 9 October 2026
- 11.Urban Enterprise Zone Program — Local Zone Support — New Jersey Department of Community Affairs · accessed 9 October 2026
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