Home
Back
New Jersey Sales Tax Formula:
| From: | To: |
New Jersey sales and use tax is a consumption tax imposed on the sale of goods and certain services within the state. The current statewide sales tax rate is 6.625%, which applies to most retail purchases of tangible personal property and certain services.
The calculator uses the New Jersey sales tax formula:
Where:
Explanation: The calculation multiplies the taxable amount by the state sales tax rate to determine the total tax due.
Details: Accurate sales tax calculation is essential for businesses to comply with state tax laws, for consumers to understand total purchase costs, and for proper financial planning and budgeting.
Tips: Enter the taxable amount in dollars (without dollar sign). The calculator will compute the sales tax based on New Jersey's 6.625% rate. The taxable amount must be greater than zero.
Q1: What is the current New Jersey sales tax rate?
A: The statewide sales tax rate in New Jersey is 6.625% as of the last update. This rate applies to most retail purchases.
Q2: Are there any exemptions from NJ sales tax?
A: Yes, certain items are exempt including most grocery food items, clothing, prescription drugs, and some services. Some urban enterprise zones may have different rates.
Q3: How often do sales tax rates change in New Jersey?
A: Sales tax rates can change through legislative action, but changes are relatively infrequent. The current 6.625% rate has been in effect since January 2018.
Q4: Do online purchases require NJ sales tax?
A: Yes, most online retailers are required to collect New Jersey sales tax on purchases shipped to NJ addresses, following the South Dakota v. Wayfair Supreme Court decision.
Q5: What's the difference between sales tax and use tax?
A: Sales tax is collected by sellers on in-state purchases, while use tax is paid by consumers on out-of-state purchases where sales tax wasn't collected but the items are used in New Jersey.