Sales Tax Calculator New Jersey
Calculate New Jersey sales tax at the 6.625% standard rate or the 3.3125% Urban Enterprise Zone rate.
🏷️ What is the New Jersey Sales Tax?
New Jersey sales tax is a state consumption tax levied on the sale of most tangible goods and certain services purchased within New Jersey. The current standard rate is 6.625%, which has been in effect since January 1, 2018. Before that date, the rate was 7%, then briefly 6.875% during a transition period tied to a state transportation funding agreement. New Jersey is notable for having a single, uniform state sales tax with no local add-on rates, so the rate you pay in Princeton is the same as in Atlantic City.
New Jersey sales tax applies to a wide range of purchases including electronics, appliances, furniture, vehicles, prepared food, alcohol, tobacco, most personal care items, and most services related to tangible property. Common real-world uses for this calculator include budgeting for a large appliance purchase, verifying the tax line on a receipt, calculating the true cost of a car purchase, or checking how much you save by shopping in a Delaware (no sales tax) or Oregon (no sales tax) store instead.
New Jersey exempts several important categories from sales tax. Unprepared food and groceries for home consumption are not taxed. Most clothing and footwear are exempt (a shopper-friendly rule that distinguishes NJ from many other states). Prescription drugs and most over-the-counter medications are also tax-free. Residential utilities including gas, electricity, and heating oil used in a home are exempt. Businesses buying items for resale can present a valid resale certificate (Form ST-3) to purchase exempt from tax.
A unique feature of NJ sales tax is the Urban Enterprise Zone (UEZ) program. In designated economically distressed cities, certified retailers may charge only half the standard state rate (3.3125%) as an incentive to attract shoppers and revitalize business districts. This makes UEZ stores in places like Newark, Camden, and Trenton competitive with nearby Delaware, where no sales tax applies at all. This calculator lets you switch between the standard 6.625% rate and the UEZ 3.3125% rate with a single tap.
📐 New Jersey Sales Tax Formula
To reverse-calculate the pre-tax price from a total that already includes tax, divide by (1 + 0.06625) = 1.06625 for the standard rate, or by 1.033125 for the UEZ rate. Do not subtract 6.625% directly from the total price, as this will over-subtract and give a wrong result because the tax rate is applied to the net price, not the gross total.
📖 How to Use This Calculator
Steps to Calculate New Jersey Sales Tax
💡 Example Calculations
Example 1 -- Laptop Purchase at Standard NJ Rate
$1,200 laptop purchased at a standard NJ electronics store
Example 2 -- Newark UEZ Store Purchase
$350 appliance bought at a certified UEZ retailer in Newark
Example 3 -- Removing Tax from a Receipt Total
Receipt shows $213.25 total. What was the pre-tax price?
Example 4 -- Restaurant Meal (Prepared Food, Fully Taxable)
$85 dinner bill at a New Jersey restaurant
❓ Frequently Asked Questions
🔗 Related Calculators
What is the New Jersey sales tax rate in 2025?
The New Jersey state sales tax rate in 2025 is 6.625%. This rate has been in effect since January 1, 2018, when NJ reduced it from 7% as part of a transportation funding deal. Unlike states such as California or Texas, New Jersey does not allow local municipalities to add their own sales taxes on top of the state rate, so the rate is uniform across the state outside of Urban Enterprise Zones.
What are New Jersey Urban Enterprise Zones and what is the UEZ tax rate?
Urban Enterprise Zones (UEZs) are designated low-income or economically distressed areas in New Jersey where qualifying retailers can charge half the normal sales tax rate. The UEZ rate is 3.3125% (half of 6.625%). Major UEZ locations include Newark, Camden, Trenton, Elizabeth, Plainfield, Irvington, Bridgeton, and Salem. Businesses must be certified UEZ participants to charge the reduced rate.
Are groceries taxed in New Jersey?
Most unprepared food and grocery items for home consumption are exempt from New Jersey sales tax. This includes fresh produce, meat, dairy, bread, canned goods, and packaged snacks. However, prepared food (restaurant meals, hot prepared food from a deli counter, catered food) is fully taxable at 6.625%. Beverages other than water and juice with less than 70% juice may also be taxable.
Is clothing taxable in New Jersey?
Most clothing and footwear are exempt from New Jersey sales tax. The exemption covers typical apparel items like shirts, pants, shoes, coats, and sportswear worn on the body. Exceptions include formal wear rentals, fur clothing, and certain accessories not worn on the body (like handbags). This makes New Jersey a favorable shopping destination for clothing compared to neighboring states that tax apparel.
How do I remove NJ sales tax from a price that already includes tax?
To back out the 6.625% NJ sales tax from a tax-inclusive price, divide the total by 1.06625. For example, if you paid $106.63 including tax, the pre-tax price is $106.63 divided by 1.06625 equals $100. The tax portion is $6.63. This calculator's Remove Tax mode does this automatically.
Are prescription drugs taxed in New Jersey?
No. Prescription drugs are exempt from New Jersey sales tax. Over-the-counter medications are also exempt if they are defined as drugs (items that treat or prevent a disease). This includes common OTC products like aspirin, cold medicine, and allergy relief. Vitamins and dietary supplements, however, are generally taxable unless a physician prescribes them.
Does New Jersey tax digital products and software?
Yes. New Jersey taxes most digital products and electronically delivered software. Streaming services, downloaded music, e-books (in many cases), and prewritten (canned) software delivered electronically are subject to the 6.625% rate. Custom software written specifically for a single customer is generally exempt as a professional service.
What purchases are exempt from NJ sales tax?
Key New Jersey sales tax exemptions include: most grocery food for home consumption, prescription and many over-the-counter drugs, most clothing and footwear, residential energy (electricity, gas, and heating fuels), agricultural products and farm equipment, manufacturing equipment used in production, and sales to qualified non-profit organizations. The state publishes a complete exemption list in Form ST-4 and related forms.
How much NJ sales tax would I pay on a $500 electronics purchase?
Electronics are fully taxable in New Jersey. On a $500 electronics purchase at the standard 6.625% rate, you would pay $33.13 in sales tax for a total of $533.13. If the purchase was made in an Urban Enterprise Zone store, the reduced 3.3125% rate applies, so you would pay $16.56 in tax for a total of $516.56.
How does NJ sales tax compare to neighboring states?
New Jersey at 6.625% compares favorably to several neighbors. New York's state rate is 4% but NYC adds 4.875% for a combined 8.875% in the city. Pennsylvania's state rate is 6% with Allegheny County at 7% and Philadelphia at 8%. Delaware has no sales tax. Connecticut charges 6.35%. For shoppers in the Philadelphia metro area, the NJ side of the Delaware River often has a lower total tax burden than the PA side.
Is there sales tax on cars in New Jersey?
Yes. Motor vehicle purchases in New Jersey are subject to a 6.625% sales tax collected by the Motor Vehicle Commission at time of registration. The tax is calculated on the purchase price or the fair market value of the vehicle, whichever is greater. Trade-in credits can reduce the taxable amount. New Jersey also charges additional fees including title and registration fees.
What is use tax in New Jersey and when do I owe it?
Use tax is the complement to sales tax. If you purchase a taxable item from an out-of-state seller who does not collect NJ sales tax (and the item is used in NJ), you legally owe New Jersey use tax at the same 6.625% rate. This commonly arises from online purchases where no NJ sales tax was collected. NJ residents are required to report use tax on their NJ-1040 state income tax return, although enforcement for individuals is limited.