Sales Tax APIThe same engine Zamp customers use.This comprehensive guide will provide all the essential information on New Jersey sales tax rates.
You’ll explore how to calculate sales tax rates for counties and cities in New Jersey and find answers to a few other questions you may have.
We’ll also show you how to collect and file sales tax in New Jersey. And if sales tax filing looks time-consuming, we’ll share a white glove sales tax solution that’ll do all the heavy lifting and ensure you stay compliant throughout your sales tax lifecycle.
Collecting Sales Tax in New Jersey
Here are the answers to some common questions regarding tax collection in New Jersey:
Do I have to Collect New Jersey Sales Tax from Customers?
New Jerseyan retailers who meet these two requirements are required to collect sales tax in New Jersey:
- Has sales tax nexus in New Jersey
- Sells taxable products or services in New Jersey
What Creates Sales Tax Nexus in New Jersey?
New Jerseyan retailers who meet these requirements are required to collect state sales tax in New Jersey:
- Physical Location: If you have a warehouse, office, or distribution center located in New Jersey, you’ll have to get a seller’s permit.
- Employee Location: A company with employees or any other representation in New Jersey should pay taxes.
- Economic Nexus: If you make taxable sales of more than $100,000 or 200 transactions in the previous or current year, you’ll have to pay sales tax.
- Trade Shows: Sellers participating in seasonal or temporary trade shows must register for sales tax if they sell taxable goods and services.
- Tangible Personal Property: Selling, leasing, or renting tangible personal property is subject to sales tax.
Do I Have to Collect Sales Tax from New Jersey Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
New Jersey has a marketplace facilitator law, meaning online marketplaces like Amazon, Walmart, etc., should collect sales tax on behalf of third-party marketplace sellers.
Like in many states, sales made via marketplaces still count toward your New Jersey economic nexus threshold.
If you’re over the economic nexus threshold in New Jersey and only sell to New Jersey buyers via marketplaces, then you need to register for a New Jersey sales tax permit. But you can request to be placed on a non-reporting basis so that you aren’t required to file New Jersey sales tax returns.
Taxable Products in New Jersey
Most tangible personal property and services like candy, soft drinks, and prepared food are taxable.
Meanwhile, essentials like groceries, most frozen and canned food, prescribed medicines, and medical supplies for home use are tax-exempt.
Let’s take a closer look at how items are taxed in New Jersey:
Are Groceries Taxable in New Jersey?
No, groceries are tax-exempt in New Jersey.
Is Clothing Taxable in New Jersey?
Most clothing is tax-exempt in New Jersey.
Exceptions include fur clothing, accessories or equipment, sport or recreational equipment, or protective equipment (unless the protective equipment is necessary for the daily work of the user).
Are Digital Products Taxable in New Jersey?
Digital products, including books, movies, and music, are usually taxable in New Jersey. (Though streaming services are generally not taxable.)
Is Software-as-a-Service (SaaS) Taxable in New Jersey?
SaaS is non-taxable in New Jersey.
Are Services Taxable in New Jersey?
Yes, specified services are taxable in New Jersey. Taxable services include animal grooming, automobile repair, car washing, and lawn mowing.
You can see which services are taxable and non-taxable in New Jersey here.
Tax-exempt Items
Some tax-exempt items in New Jersey are:
- Disposable paper items like towels, napkins, and paper plates.
- Food and food ingredients like baking products, frozen fruits, and canned vegetables.
- Dietary supplements that are labeled as a dietary supplement and identifiable by the “Supplement Facts” box on the label.
- Diabetic supplies, prosthetic devices, and durable medical equipment for home use. Examples include artificial limbs, corrective eyeglasses, and bedpans.
- Beverages containing milk, milk substitutes, or more than 50% juice.
- Fuels like Charcoal and cigarette lighter fluid.
- Magazines, newspapers, and newsletters that are sold as single copies or by subscription.
But to collect sales tax, you need a sales tax permit. Let’s find out how you can get one.
How to Register for a New Jersey Seller’s Permit
If you need to collect sales tax in New Jersey, the next step is to register for your New Jersey sales tax permit. To register for a New Jersey sales tax license, submit the form NJ-REG online.
Check out how to register for a sales tax permit in the United States.
Do I Need a New Jersey seller’s Permit if I’m only a Wholesaler?
Yes. The state of New Jersey requires wholesalers who accept exemption certificates to be registered with the state.
Do I Need a New Jersey Seller’s Permit if I Only Sell Temporarily in the State?
Yes. All retailers, even temporary or seasonal businesses, are required to register for a New Jersey sales tax permit 15 days before they start doing business in the state.
How to Collect Sales Tax in New Jersey
New Jersey has a single sales tax rate of 6.625%. All sales sourced to New Jersey should be charged this single rate, unless you’re in a UEZ or a region where special taxes apply,
Should You Collect Sales Tax on Shipping Charges in New Jersey?
Yes. New Jersey considers shipping a part of the taxable sale.
Check out how sales tax is calculated on shipping charges in every US state.
How to File and Pay Sales Tax in New Jersey
Just like income tax, the state collects sales tax too.
When you register for your New Jersey sales tax permit, the state assigns you a filing frequency and sales tax due dates. In New Jersey, although most sales tax filers file and pay quarterly, some sales tax filers may need to file quarterly but pay monthly.
When your sales tax due date rolls around, your next step is to calculate how much sales tax you collected from buyers in the state and in each district.
From there, you can file and pay New Jersey sales tax through multiple ways:
- File New Jersey sales tax online: File and pay via the New Jersey Division of Taxation’s Online Filing System.
- File New Jersey sales tax by phone: Use the New Jersey EZ File System by calling 1-877-829-2866 (609-341-4800) and selecting option 1. You’ll still be required to submit New Jersey sales tax payments electronically.
- Let Zamp handle your New Jersey sales tax so you never have to look at a sales tax return again!
There is no paper/mailing filing option for New Jersey sales tax returns.
Learn how to file and pay sales tax in other US states here.
Next, let’s find answers to a few FAQs regarding New Jersey sales taxes.
