New Jersey Sales Tax Calculator

What is New Jersey's sales tax rate?

NJ has a single statewide rate of 6.625% — no county or city additions. This makes NJ one of the few states with a truly uniform sales tax. The rate was 7% before July 2018 when it was reduced to 6.875%, then to 6.625% in 2018. Urban Enterprise Zones have a reduced rate of 3.3125% (exactly half the standard rate).

What is an Urban Enterprise Zone (UEZ) in NJ?

UEZs are designated economically distressed areas where retailers charge 3.3125% (half the standard 6.625%) on most purchases. UEZ municipalities include: Bridgeton, Camden, East Orange, Elizabeth, Millville, Newark, New Brunswick, Paterson, Plainfield, Trenton, Vineland, and others. The lower rate is meant to attract shoppers and stimulate economic activity.

What is exempt from NJ sales tax?

NJ sales tax exemptions: unprepared food (groceries), clothing and footwear (all items — NJ is unique in exempting ALL clothing, not just under a threshold), prescription drugs, over-the-counter drugs when prescribed, most medical equipment, newspapers, agricultural products, and manufacturing machinery. Notable taxable items: prepared food, alcohol, tobacco, digital downloads, and services (landscaping, cleaning, etc.).

Does NJ charge sales tax on cars?

Yes — NJ charges 6.625% sales tax on vehicle purchases. Trade-in credits reduce the taxable amount (you pay tax only on the difference). There are exemptions for transfers between family members and certain fleet/commercial vehicles. The sales tax on cars is paid to the DMV at registration, not to the dealer directly.