New Jersey Sales Tax
New Jersey sales tax regulations are complex and change regularly. From tangible product taxability to filing frequency, a deep understanding of state sales tax rates and rules is essential for business success.
Sales tax is a state-imposed tax on certain goods and services paid by consumers. All businesses that sell taxable goods or services in the state of New Jersey must register for New Jersey Sales Tax. Registration is based on having a significant connection to the state, known as nexus. New Jersey’s online registration site requires you to provide your business details, EIN, and other identifying information.
New Jersey Sales Tax rate is 6.625 percent. Local municipalities may also impose special luxury or tourism taxes, and qualified businesses in established Urban Enterprise Zones can charge half the regular sales tax. If you are unsure whether your products or services are subject to sales tax, the State of New Jersey has a helpful guide that lists items that are taxable or exempt from sales tax.
Online sellers that sell taxable goods or services in New Jersey must register to collect sales tax and file returns and payments. They can do this online using Premier Business Service, the state’s online tax portal. To register, you’ll need your EIN, business details, and NAICS code.
The state also requires retailers to apply the correct sales tax rate at the point of sale. This can be done by using a software solution or by logging into the system with GPS to determine the customer’s location and then applying the appropriate rate.
New Jersey Sales Tax-exempt Items
A few categories of items are exempt from New Jersey sales tax. These include food and food ingredients, dietary supplements, certain non-sugary beverages, and prescription or over-the-counter drugs. Additionally, medical equipment that is durable and used for the treatment of a chronic illness or disability is tax-exempt. Other exemptions include sports and recreational gear that is worn only for that purpose (such as cleats, ice skates, and mouth guards) and disposable paper products.
New Jersey Sales Tax Due Dates
You must file a New Jersey sales tax return quarterly with Form ST-50. The filing due date is on or before the 20th day of the month following the end of the collection period. If the due date falls on a weekend or holiday, you must file the return by the next business day.
