Article — New Jersey Sales Tax Calculator
New Jersey sales tax calculator: statewide and UEZ rates
The New Jersey sales tax rate is 6.625% statewide, uniform across all 21 counties with no local add-ons. The same purchase at a registered Urban Enterprise Zone (UEZ) business is taxed at half the rate, 3.3125%. Groceries, prescription drugs, and most clothing are exempt. The calculator on this page applies the New Jersey Division of Taxation's 2024 schedule, including the UEZ option and the standard exemptions, so you can see the final price before walking up to the register.
New Jersey's sales tax structure is unusually simple by U.S. standards. Most other states stack county and city rates on top of the state rate, which is how cities like New Orleans and Chicago end up north of 9% combined. New Jersey has held the line at a single statewide rate since 1966.
The New Jersey sales tax rate
The current rate of 6.625% took effect on 1 January 2018 after a phased reduction from 7% in 2017. The state cut the rate in two steps as part of a broader compromise on the gas tax. New Jersey is one of five U.S. states where the state rate is also the only rate — the others are Connecticut, Rhode Island, Massachusetts, and Maine.
Statewide 6.625%UEZ reduced 3.3125%Groceries 0% (exempt)Clothing 0% (most items)Prescription drugs 0%The 6.625% applies to tangible personal property and a defined list of taxable services. Construction labour, accounting, legal, and most professional services remain untaxed. Prepared food, soda, candy, and digital downloads are taxable even when sold alongside otherwise-exempt groceries.
UEZ and the New Jersey sales tax reduction
Urban Enterprise Zones were created in 1986 to spur investment in struggling cities. Registered retailers in designated UEZ areas charge sales tax at half the statewide rate — 3.3125% — on qualifying purchases. The program covers roughly 32 cities, including Newark, Jersey City, Paterson, Camden, Trenton, Atlantic City, Elizabeth, and Bridgeton.
The UEZ rate applies to tangible personal property sold at the participating retailer's zone location. It does not apply to motor vehicles, alcoholic beverages, restaurant meals, hotel rooms, or telephone service. A $400 stereo bought at a registered UEZ shop in Newark costs $13.25 in tax instead of $26.50 at the same shop's suburban store.
The New Jersey UEZ program funnels 100% of the reduced-rate sales tax collected back to the zone's municipality, where it is reinvested in local infrastructure and small-business loans. The Department of Community Affairs reports the program has generated more than $1 billion of reinvestment since 1986.
New Jersey sales tax exemptions
New Jersey exempts an unusually wide range of necessities. The full list runs to dozens of categories, but the major exemptions are food and beverages for off-premises consumption, prescription and most over-the-counter drugs, medical equipment, and disposable household supplies such as paper goods.
- Groceries = exempt; covers fresh produce, meat, dairy, bread, eggs, and canned goods
- Prescription drugs = exempt; insulin and most OTC medications are also exempt
- Medical equipment = exempt; wheelchairs, hearing aids, prosthetics
- Newspapers and magazines = exempt; covers print subscriptions
- Residential utilities = exempt; gas, electricity, and water bills are not subject to sales tax
- Used clothing donations = exempt at registered nonprofits
Soda, candy, prepared food, and food sold for immediate consumption are taxable at the full 6.625%. The same can of soda sold cold at a deli is taxed, while the bottle of milk next to it is exempt.
Clothing and the New Jersey sales tax exemption
New Jersey is one of a small group of states that exempt most clothing and footwear from sales tax. Massachusetts and Pennsylvania share the policy, while neighbouring New York taxes clothing above $110 per item in some counties. The New Jersey exemption is broader: it covers nearly all wearable goods at any price.
The exceptions are fur clothing, accessories such as jewellery and handbags, and protective or athletic equipment. A pair of shoes is exempt; ski boots and football pads are taxable. Wedding gowns are exempt; the matching diamond earrings are taxable.
Out-of-state shoppers cannot claim refunds on New Jersey sales tax paid, but the clothing exemption means most U.S. visitors already pay zero on apparel. Make Newark's outlet centres or the Jersey Shore boardwalk shops your last purchase stop on a road trip up the I-95 corridor.
New Jersey sales tax vs neighbouring states
The four states bordering New Jersey have very different sales tax structures. New York pairs a 4% state rate with county and city add-ons that push New York City's combined rate to 8.875%. Pennsylvania holds steady at 6% statewide with Philadelphia adding 2% for a combined 8%. Delaware has no sales tax at all, the famous magnet for big-ticket out-of-state shoppers.
The Delaware no-sales-tax loophole sounds attractive, but New Jersey use tax law expects residents to self-assess 6.625% on those Delaware purchases when they return home. The use tax line on Form NJ-1040 is the legal mechanism. Enforcement is weak for cash purchases but obvious for big-ticket items like furniture or vehicles registered in New Jersey.
Worked New Jersey sales tax examples
Example 1 — $500 electronics in Trenton (UEZ). The shop is registered in the Trenton UEZ. Sales tax = $500 × 3.3125% = $16.56. Total = $516.56. UEZ savings vs the statewide rate: $16.57.
Example 2 — $200 of groceries in Princeton. Unprepared groceries are exempt. Sales tax = $0. Total = $200. The bottle of soda included with the order is taxable separately at 6.625%.
Example 3 — $1,200 designer jacket in Short Hills mall. Most clothing is exempt regardless of price. Sales tax = $0. Total = $1,200. A fur-lined coat at the same price would be taxed at 6.625% because furs are excluded from the clothing exemption.
Example 4 — $75 restaurant meal in Hoboken. Prepared food is fully taxable. Sales tax = $75 × 6.625% = $4.97. Total = $79.97. Add a standard 18-20% tip on the pre-tax subtotal.
Common New Jersey sales tax mistakes
The first mistake is assuming New Jersey has local sales tax. Out-of-state shoppers expect a county or city add-on the way they would in California or Texas, but there is none. The 6.625% you see in Hoboken is the same rate you see in Cape May.
The second mistake is misreading the UEZ rule. The reduced 3.3125% applies only at registered UEZ retailers within zone boundaries — not to every shop in a city that has a UEZ. The retailer must display a UEZ certificate and charge the reduced rate on qualifying goods.
The third mistake is forgetting use tax on Delaware purchases. New Jersey residents who drive south for furniture or appliances must self-report and pay 6.625% on those purchases at filing time.
A frequent surprise is the soda and prepared-food carve-out from the grocery exemption. A bag of apples is exempt; a hot deli sandwich is taxable. A 12-pack of bottled water is exempt; a single cold soda from the cooler is taxable. The store will charge the tax automatically at the register, but it can throw off your budget calculation.