NJ sales tax is 6.625% statewide in 2026, the same rate that has applied since January 1, 2018, and New Jersey has no extra county or city sales tax on top of it. Certified businesses in Urban Enterprise Zones and authorized sellers in Salem County can charge a reduced rate of 3.3125% on qualifying in-person retail sales. Most groceries, clothing and footwear, prescription and over-the-counter drugs, and household paper products are exempt. Cars are taxed at 6.625%, and electric vehicles lost their sales tax exemption, returning to the full rate on July 1, 2025.
Key Takeaways
- Statewide rate: 6.625% on taxable goods and services, with no local sales tax added.
- Reduced rate: 3.3125% for qualifying in-person sales by certified Urban Enterprise Zone businesses and authorized Salem County sellers.
- Common exemptions: most unprepared food, clothing and shoes, prescription and over-the-counter drugs, and disposable household paper products.
- Electric vehicles: taxed at the full 6.625% since July 1, 2025, after a 3.3125% phase-out period.
- Hotel stays: sales tax plus a state occupancy fee of up to 5% and a municipal tax of up to 3%.
- Use tax: owed at 6.625% on taxable out-of-state or online purchases when no NJ sales tax was charged.
- Businesses register with the Division of Revenue and Enterprise Services and file quarterly ST-50 returns.
Rates and rules follow NJ Division of Taxation publications and guidance, reviewed in September 2026. This guide is general information, not tax or legal advice.
NJ Sales Tax Rates in 2026
New Jersey keeps its sales tax simple compared with many states. There is one statewide rate, and municipalities and counties cannot add their own general sales tax. However, a few special rates and fees apply to certain places and purchases.
| Situation | Rate in 2026 |
|---|---|
| Standard NJ sales tax | 6.625% |
| Use tax on untaxed out-of-state purchases | 6.625% |
| Certified Urban Enterprise Zone sellers (qualifying in-person sales) | 3.3125% |
| Authorized Salem County sellers (qualifying in-person sales) | 3.3125% |
| Zero emission vehicles | 6.625% (since July 1, 2025) |
| Atlantic City luxury tax on rooms, admissions and entertainment | 9%, combined with a reduced 3.625% sales tax |
The 6.625% rate took effect on January 1, 2018, after the rate was trimmed from 6.875%. Neither the FY2026 nor the FY2027 state budget changed the NJ sales tax rate.
Urban Enterprise Zones and the Reduced Rate
The Urban Enterprise Zone (UEZ) program lets certified businesses in designated urban areas charge half the normal NJ sales tax, or 3.3125%. According to state reports on the 2021 reform law, there are 32 zones covering parts of 37 municipalities. Zone cities include Bridgeton, Camden, Newark, Plainfield and Trenton. The 2021 law let existing zones keep their designation for 10 years.
What qualifies for the UEZ rate
- The seller must be certified by the Urban Enterprise Zone Authority and recertify every three years.
- The sale must be face-to-face: the customer orders at the certified retailer’s zone location or picks up there. Businesses that are primarily catalog, mail-order or internet sellers cannot use the reduced rate.
- Some items are excluded, including motor vehicles, alcoholic beverages, cigarettes, energy, telecommunications and utility services.
- A zone address alone is not enough. A store that sits inside a zone but is not certified charges the full rate.
If you shop in a UEZ, look for signs at the register or check the rate printed on your receipt. Certified sellers file monthly UZ-50 returns with the Division of Taxation.
Salem County Reduced Rate
Salem County, which borders Delaware where there is no sales tax, has its own reduced-rate rule. Authorized sellers operating a regular place of business in the county can charge 3.3125% on eligible retail sales of goods. The buyer must order or pick up the item at the Salem County store. Examples on the state’s list include furniture and carpeting, appliances, books and stationery, toys, cosmetics, jewelry, lumber and computer hardware.
The Division of Taxation lists several exclusions: catalog and mail-order sales, alcoholic beverages, cigarettes, motor vehicles, hotel room charges and specified digital products. Those purchases are charged the full NJ sales tax.
What Is Exempt From NJ Sales Tax
New Jersey exempts many everyday necessities, which lowers the tax burden on basic household spending. The Division of Taxation’s sales tax guide lists these common exemptions.
| Category | Generally exempt | Common taxable exceptions |
|---|---|---|
| Food | Groceries such as bread, milk, eggs, produce, canned goods and baby formula | Candy, soft drinks and prepared food |
| Clothing and footwear | Most everyday clothing and shoes, including jogging and running shoes | Fur clothing, and sport or protective gear such as cleated athletic shoes, ice skates, ski boots and sports helmets |
| Medicine | Prescription drugs and over-the-counter drugs with a Drug Facts label | Cosmetics and grooming products |
| Medical items | Diabetic supplies, plus prosthetic devices such as artificial limbs and hearing aids | Other equipment varies by item and prescription status |
| Household paper | Paper towels, napkins, and disposable paper plates and cups | Most other household supplies |
| Reading | Newspapers | Books, including e-books |
Watch the details on food. Candy and sweetened soft drinks are taxable even at a grocery store, and food becomes taxable prepared food when the seller heats it or combines two or more ingredients into a dish.
What Is Taxable in New Jersey
Most physical goods that are not specifically exempt are subject to NJ sales tax. That includes furniture, electronics, appliances, pet food, batteries, light bulbs, alcoholic beverages and restaurant meals.
Taxable services
New Jersey also taxes a long list of services. Common examples include:
- Home and property services such as landscaping, window washing and carpet cleaning.
- Repairs to cars, appliances and computers, including parts and labor.
- Personal services such as tanning, tattooing and massage.
- Memberships to gyms and fitness clubs.
- Utilities and telecommunications, including electricity, natural gas, and landline and wireless phone service.
- Parking in most situations.
Specified digital products, such as downloaded music, movies and e-books, are also taxable. Because utilities are taxed, sales tax appears on your monthly energy bill; our guide to NJ electric rates explains the rest of that bill.
NJ Sales Tax on Cars
Vehicle purchases are one of the biggest NJ sales tax bills most families pay. The rate is 6.625% of the purchase price for new and used vehicles.
Buying from a dealer
A registered dealer collects the tax at the time of sale. According to the Division of Taxation’s automotive tax guide, a trade-in reduces the taxable price when the trade-in is a motor vehicle, goes to the dealer for resale, and both deals are signed at the same time. Manufacturer rebates do not reduce the taxable amount, and dealer documentary fees are taxable. Leases longer than six months are generally taxed up front.
Buying from a private seller
In a private sale, no dealer collects the tax. Instead, the buyer pays sales tax at a Motor Vehicle Commission agency when transferring the title, which must happen within 10 working days to avoid a $25 penalty. If the price reported looks low compared with market value, the Division may send a notice and ask for proof, such as repair bills or photos showing the car’s condition. A true gift with no loan attached is not taxed when the title is marked as a gift.
Electric vehicle sales tax in 2026
Zero emission vehicles used to be fully exempt. A 2024 law phased out that break: ZEVs were taxed at 3.3125% from October 1, 2024, through June 30, 2025, and have paid the full 6.625% since July 1, 2025. That rate still applies in 2026.
Luxury vehicle surcharge
New passenger vehicles with a price of $45,000 or more, or a fuel rating under 19 miles per gallon, also carry a one-time 0.4% Luxury and Fuel-Inefficient Vehicle Surcharge. After you buy, our guide to NJ vehicle registration renewal explains the next steps.
Hotel Taxes and the Atlantic City Luxury Tax
Hotel and motel rooms are subject to NJ sales tax plus extra occupancy charges.
| Charge | Rate |
|---|---|
| NJ sales tax | 6.625% (3.625% in Atlantic City) |
| State occupancy fee | 5% in most places; 1% in Atlantic City, Elizabeth, Newark and Jersey City; 3.15% in the Wildwoods |
| Municipal occupancy tax | Up to 3% where a town adopts it |
| Newark hotel surcharge (since January 1, 2026) | $3 per day |
| Atlantic City luxury tax | 9% on rooms, admissions and entertainment; 3% on drinks by the glass |
| Wildwoods total room tax | 13.625%, including Cape May County tourism charges |
Atlantic City rooms also carry a daily tourism promotion fee, and casino hotels add per-night fees. Planning a shore trip? Our guide to things to do in Cape May covers the southern tip of the state.
NJ Sales Tax Changes in 2025 and 2026
The statewide rate has not changed, but a few narrower rules have. The Division of Taxation lists these recent laws:
- Investment bullion and coins became exempt for sales on or after January 1, 2025.
- Electric vehicles returned to the full 6.625% rate on July 1, 2025.
- A $3 per day hotel surcharge began January 1, 2026, in a first-class city with an international airport, which means Newark.
In addition, a proposed sales tax on digital services was left out of the final FY2026 budget, and the FY2027 budget did not change the sales tax.
Use Tax and Online Purchases
Use tax is the partner of NJ sales tax. You owe it at 6.625% when you buy a taxable item or service from an out-of-state or online seller and pay no sales tax, or pay a lower rate to another state. For example, if you paid 6% in another state on a $1,000 purchase, you owe New Jersey the $6.25 difference.
Most large online retailers now collect NJ sales tax at checkout. Since November 1, 2018, remote sellers with more than $100,000 in New Jersey sales, or 200 or more separate transactions, in the current or prior year must collect the tax. Marketplace facilitators such as large online platforms collect it for third-party sellers.
How individuals pay use tax
Residents can report use tax on the NJ-1040 income tax return, or file Form ST-18 if they do not file a return. If you do not know the exact amount, the Division publishes an estimate chart based on income, starting at $14 for incomes up to $15,000.
How Businesses Register and File
- Register with the New Jersey Division of Revenue and Enterprise Services before making taxable sales. This includes people who regularly sell at flea markets.
- Display your Certificate of Authority where you make sales.
- Collect the correct rate and keep sales records for at least four years.
- File a quarterly ST-50 return by April 20, July 20, October 20 and January 20.
- Make monthly payments by the 20th of the next month if you collected more than $30,000 in the prior year and more than $500 in that month.
Returns and payments are filed online through the Division of Taxation’s systems.
More Money and Tax Guides
See how sales tax fits into the state’s finances in our explainer of the NJ budget for FY2027. Browse more guides in our Money & Taxes section or on the NJ News Today homepage.
Frequently Asked Questions About NJ Sales Tax
What is the NJ sales tax rate in 2026?
The New Jersey sales tax rate is 6.625% statewide in 2026, and there is no additional county or city sales tax.
Is clothing taxed in New Jersey?
Most everyday clothing and footwear is exempt from NJ sales tax, but fur clothing and certain sports and protective gear are taxable.
Is food taxed in New Jersey?
Most grocery food is exempt, but candy, soft drinks and prepared food such as restaurant meals are taxable at 6.625%.
What is the Urban Enterprise Zone sales tax rate?
Certified Urban Enterprise Zone businesses can charge 3.3125%, half the normal rate, on qualifying in-person sales at their zone location.
Do electric cars pay sales tax in NJ?
Yes. Zero emission vehicles have been taxed at the full 6.625% rate since July 1, 2025, after a reduced 3.3125% rate from October 2024 through June 2025.
Where do I pay sales tax on a car bought from a private seller in NJ?
The buyer pays the 6.625% sales tax at a Motor Vehicle Commission agency when transferring the title, unless the car is a qualifying gift.
What is use tax in New Jersey?
Use tax is a 6.625% tax owed on taxable out-of-state or online purchases when no NJ sales tax, or a lower rate, was paid, and residents can report it on the NJ-1040.
How much is the hotel tax in NJ?
Hotel rooms carry the 6.625% sales tax plus a state occupancy fee of up to 5% and a municipal occupancy tax of up to 3% in many towns, with special rates in Atlantic City and the Wildwoods.
The Bottom Line on NJ Sales Tax
NJ sales tax is a flat 6.625% statewide in 2026, with a half rate of 3.3125% only at certified UEZ businesses and authorized Salem County sellers. Groceries, clothing and medicine are mostly tax-free, while many services, cars and electric vehicles are taxed at the full rate. Keep receipts for online and out-of-state purchases, and budget for occupancy fees when you book a hotel.
