New Jersey sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 6.625% |
| Local rates | None: one rate statewide |
| Average combined rate | 6.60% |
| Groceries | ExemptMost food sold in food stores is exempt. Prepared food, candy, soft drinks and alcohol are taxable. |
| Prescription drugs | Exempt (also OTC)All drugs for human use are exempt, including over-the-counter medicines. |
| Clothing | ExemptClothing and footwear are exempt. Fur clothing, accessories and sports or protective equipment are taxable. |
Official rates: NJ Division of Taxation: Urban Enterprise Zone and Salem County reduced rate.
Worked examples
A $900 laptop anywhere in New Jersey (6.625%)
| Rate | 6.625% |
|---|---|
| Price before tax | $900.00 |
| Sales tax | $59.63 |
| Total | $959.63 |
Working: $900.00 × 6.625% = $59.63. There are no local add-ons, so the rate is the same in every town. A laptop is not clothing, so it is taxed in full.
Working back from a $53.31 receipt at 6.625%
| Rate | 6.625% |
|---|---|
| Price before tax | $50.00 |
| Sales tax | $3.31 |
| Total | $53.31 |
Working back: $53.31 ÷ 1.06625 = $50.00, so the tax was $3.31. Dividing by 1.06625 gives the pre-tax price. If the store charged the 3.3125% Urban Enterprise Zone rate, divide by 1.033125 instead.
Urban Enterprise Zones and Salem County
Qualifying businesses in New Jersey's Urban Enterprise Zones (including parts of cities such as Newark, Trenton, Camden and Elizabeth) and in Salem County can charge half the normal rate, 3.3125%, on many in-store sales. The reduced rate does not cover everything: motor vehicles, alcohol, cigarettes, energy, services and catalog or online sales are taxed at the full 6.625%. Because of these zones, the Tax Foundation's statewide average combined rate is 6.60%, a little below the statutory rate.
What New Jersey exempts
New Jersey exempts clothing and footwear for everyday wear, though fur clothing, accessories such as jewelry and handbags, and sports or protective equipment are taxable. Most food sold in grocery stores is exempt, while prepared food, candy and soft drinks are taxed. All drugs for human use are exempt, including over-the-counter medicines. Zero-emission vehicles lost their exemption: they have been taxed at the full 6.625% since 1 July 2025.
New Jersey vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| New Jersey | 6.625% | 6.60% | Exempt |
| New York | 4% | 8.54% | Exempt |
| Pennsylvania | 6% | 6.34% | Exempt |
| Delaware | 0% | 0.00% | No sales tax |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.