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New JerseySales Tax

A Complete Guide For Businesses

Automate My New JerseySales Tax Filings

State Rate
6.625%

Local Tax
no

State Portal
Division of Taxation

Phone
(609) 826-4400

General requirements

New Jersey is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the sale of tangible personal property (TPP), specified digital products, and certain services
  • For manufacturers, purchases used for production aren’t taxed
  • For distributors, items purchased for resale aren’t taxed

Businesses may file the quarterly return (ST-50) or the monthly return (ST-51) online.

Rates

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%.

How food is taxed

The 6.625% state sales tax applies to prepared food sold for consumption on premises. Most other items of food or drink are exempt.

Nexus in New Jersey

Business activities that establish a minimum tax connection to the state include:

  • Maintaining a physical place of business including a warehouse or distribution center
  • Having employees, independent contractors, or representatives working in the state
  • Delivering goods in business owned vehicles
  • Garaging, parking, or storing vehicles

Business activities that establish what New Jersey calls “Click-Through Nexus” include:

  • Having an affiliate or referral relationship with a contractor or representative in the state
  • Sales from these referrals exceed $10,000 during each of the prior 4 quarters

Find more information about nexus in New Jersey.

Filing schedule

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:

  • Monthly filers: The amount of tax due is more than $500 and you collected more than $30,000 in Sales and Use Tax in New Jersey during the preceding calendar year (January 1 – December 31)
  • Quarterly filers: If the above is not applicable, file the quarterly return, Form ST-50

Registering to collect sales tax in New Jersey

File Form NJ-REG to be registered for tax purposes. Online registration is available, or you can download the form and instructions to print and mail.

Penalties

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.

See how easy it is to automate your sales tax filings.

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