New Jersey is a destination-based state (sales are taxed where the buyer is located).
Businesses may file the quarterly return (ST-50) or the monthly return (ST-51) online.
The New Jersey state sales tax was reduced to 6.625%.
An additional Luxury Tax in Atlantic City brings the total rate there to 12.625%. For alcoholic beverages, the total rate is 9.625%.
In Cape May County, businesses in Wildwood, North Wildwood, and Wildwood Crest that are subject to the Tourism Tax collect an additional 2% Tourism Tax.
Authorized Urban Enterprise Zone/Salem County businesses collect a reduced rate of 3.3125%.
The 6.625% state sales tax applies to prepared food sold for consumption on premises. Most other items of food or drink are exempt.
Business activities that establish a minimum tax connection to the state include:
Business activities that establish what New Jersey calls “Click-Through Nexus” include:
Find more information about nexus in New Jersey.
Returns and payments are due on the 20th of the month following the end of the reporting period.
Your filing frequency will be determined as follows:
The late filing penalty is 5% per month of the balance due at the original return due date not to exceed 25% of the tax liability. A penalty of $100 per month for each month the return is late will also be imposed.
The late payment penalty is 5% of the balance due and paid late.
Interest at 3% above the average predominant prime rate is imposed each month on the unpaid balance of the tax from the original due date to the date of payment.