New Jersey's statewide sales tax rate is 6.625 percent
New Jersey has a single statewide sales tax rate of 6.625 percent, applied uniformly across all counties. Unlike many states, New Jersey does not allow counties or municipalities to add local sales taxes on top of the state rate. This means the rate you pay in Newark is identical to the rate in Cape May or any other part of the state.
The 6.625 percent rate applies to most tangible goods — clothing, electronics, furniture, groceries at checkout, and similar items. However, New Jersey has carved out specific categories where sales tax does not explore or applies differently. Understanding which items are taxed and which are not can affect what you actually pay at the register.
Key Takeaways
- New Jersey's sales tax rate is 6.625 percent statewide with no local additions, so the rate is the same everywhere in the state.
- Clothing and footwear under $110 per item are exempt from sales tax, but items at or above $110 are fully taxed.
- Most groceries and unprepared food are exempt, but prepared food, candy, and soda are taxed at the full rate.
- Prescription medications are exempt, but over-the-counter drugs and vitamins are taxed.
- Services like haircuts, repairs, and professional fees are generally not subject to sales tax in New Jersey.
What is taxed at the full 6.625 percent rate
Most items you buy in a store are subject to the full sales tax. This includes electronics, appliances, furniture, toys, books, office supplies, and household goods. Gasoline at the pump is taxed, as are restaurant meals and takeout food. Alcohol — beer, wine, and liquor — is taxed at the standard rate (though it also carries separate excise taxes that are not part of the sales tax).
Prepared foods are taxed even though unprepared groceries are not. This means a sandwich from a deli counter is taxed, but a loaf of bread from the shelf is not. Similarly, hot food from a restaurant or food truck is taxed, but cold prepared food from a grocery store's prepared section may or may not be, depending on how it is sold and whether it is meant to be eaten when ready.
Clothing and footwear under $110 are exempt
New Jersey exempts most clothing and footwear from sales tax, but only if the item costs less than $110. This exemption covers shirts, pants, dresses, jackets, socks, shoes, belts, hats, and gloves. Once a single item reaches $110 or more, the entire purchase is taxed at 6.625 percent.
This threshold applies per item, not per transaction. If you buy five shirts at $20 each, none are taxed. If you buy one coat for $150, the entire $150 is taxed. Items like athletic wear, swimwear, and undergarments follow the same rule. Accessories such as scarves, ties, and handbags are also exempt if under $110, but jewelry is not considered clothing and is always taxed.
Groceries and food exemptions
Most food you buy at a grocery store to prepare at home is exempt from sales tax. This includes meat, poultry, fish, produce, dairy, bread, cereal, canned goods, frozen vegetables, and pantry staples. The exemption covers items meant to be eaten at home, not items meant for when ready consumption.
Prepared and ready-to-eat foods are taxed. This includes deli sandwiches, rotisserie chicken, hot pizza, salad bar items, and food from a restaurant or food truck. Candy and confections are taxed as well. Soda and other beverages are taxed, but milk and 100 percent fruit or vegetable juice are not. The line between "grocery" and "prepared food" can be unclear — when in doubt, ask the cashier before checkout.
Medications and health items
Prescription medications are exempt from sales tax in New Jersey. This applies to any drug dispensed by a pharmacist with a valid prescription, regardless of cost. Over-the-counter medications — pain relievers, cold medicines, allergy tablets, and similar items — are taxed at the full rate. Vitamins and dietary supplements are also taxed.
Medical devices and equipment vary. Eyeglasses and contact lenses are taxed. Hearing aids are exempt. Crutches, wheelchairs, and similar mobility aids are generally exempt when purchased for medical use, but the exemption depends on how the item is classified and sold. If you are buying medical equipment, ask the retailer whether it is taxable before you complete the purchase.
Services are generally not taxed
New Jersey does not tax most services. Haircuts, dental work, medical care, car repairs, plumbing, electrical work, and similar professional services are not subject to sales tax. This is true even though the service provider may charge you a substantial amount. The distinction between a "good" (taxed) and a "service" (not taxed) matters significantly to your final bill.
However, if a service provider sells you a tangible item as part of the service, that item may be taxed. For example, a hair salon does not tax the haircut itself, but if you buy shampoo at the register, the shampoo is taxed. A repair shop does not tax the labor, but replacement parts are taxed. Always ask whether parts or materials are included in the quoted price or added separately.
How sales tax appears on your receipt
When you check out, the cashier or register calculates the tax on taxable items only and adds it to your subtotal. The receipt should show the subtotal, the tax amount, and the total. If you buy a mix of taxable and exempt items — say, a shirt under $110 and a bottle of soda — only the soda is taxed.
Online purchases from New Jersey retailers are subject to the same 6.625 percent rate. If you order from an out-of-state retailer and the retailer does not collect New Jersey sales tax, you may owe use tax on the purchase when you file your state income tax return. Use tax is the same rate as sales tax and applies to items you bring into New Jersey or have delivered here. Most individual taxpayers do not report use tax, but it is technically owed on taxable purchases from retailers that do not collect it.
Frequently Asked Questions
Do I pay sales tax on groceries in New Jersey?
Most groceries are exempt — meat, produce, dairy, bread, and canned goods are not taxed. Prepared foods like deli sandwiches, hot pizza, and soda are taxed. Candy and confections are also taxed. The rule is whether the food is meant to be eaten at home or consumed when ready.
Is clothing always tax-free in New Jersey?
Clothing under $110 per item is exempt. Once a single item costs $110 or more, the entire purchase is taxed at 6.625 percent. This applies to shoes, jackets, and all other apparel. Jewelry and accessories like belts are treated differently and may be taxed even if under $110.
What about prescription versus over-the-counter drugs?
Prescription medications dispensed by a pharmacist are exempt from sales tax. Over-the-counter drugs like pain relievers and cold medicine are taxed at the full 6.625 percent rate. Vitamins and supplements are also taxed.
Do I pay sales tax on services like haircuts or car repairs?
No. Services such as haircuts, medical care, dental work, and repairs are not subject to sales tax in New Jersey. However, if the service provider sells you a tangible item — like shampoo at a salon or replacement parts at a repair shop — that item is taxed separately.
Is there a local sales tax added to the state rate?
No. New Jersey has only a statewide sales tax of 6.625 percent. Counties and municipalities cannot add their own sales tax, so the rate is the same everywhere in the state.