1. What is New Jersey Sales Tax?

New Jersey sales tax is a consumption tax imposed by the state on the sale of goods and certain services. The current statewide sales tax rate is 6.625% as of 2025, making it one of the lower sales tax rates in the region.

2. How Does the Calculator Work?

The calculator uses the New Jersey sales tax formula:

Where:

• \( Tax \) — Sales tax amount in dollars
• \( Price \) — Original price before tax in dollars
• \( 0.06625 \) — New Jersey sales tax rate (6.625%)

Explanation: The formula calculates the tax amount by multiplying the purchase price by the state's sales tax rate of 6.625%.

3. Importance of Sales Tax Calculation

Details: Accurate sales tax calculation is essential for businesses to comply with state tax laws, for consumers to understand total purchase costs, and for financial planning and budgeting purposes.

4. Using the Calculator

Tips: Enter the price of the item or service in dollars. The calculator will automatically compute the sales tax amount and the total price including tax. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current New Jersey sales tax rate?
A: The current statewide sales tax rate in New Jersey is 6.625% as of 2025.

Q2: Are there any exemptions to NJ sales tax?
A: Yes, New Jersey exempts certain items including most grocery food, clothing, prescription drugs, and some services from sales tax.

Q3: Do local municipalities add additional sales tax?
A: No, New Jersey has a uniform statewide sales tax rate with no additional local sales taxes added by municipalities.

Q4: How does NJ sales tax compare to neighboring states?
A: New Jersey's 6.625% rate is generally lower than New York (varies by county) and Pennsylvania (6%), but higher than Delaware (no sales tax).

Q5: When did NJ implement the 6.625% sales tax rate?
A: The rate was reduced from 7% to 6.625% effective January 1, 2018, as part of the "Fairness Formula" legislation.