How to compute NJ Sales Tax for New Jersey, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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Every figure is drawn from this Guide and cited to its source.
Clothing taxability prohibition
NEVER treat clothing as taxable in NJ -- ALL clothing and footwear is exempt.Section 10 -- Prohibitions
UEZ reduced rate reminder
NEVER forget the UEZ reduced rate program (3.3125%).Section 10 -- Prohibitions
No computation rule
NEVER compute any number.Section 10 -- Prohibitions
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Quick reference
| Field | Value |
|---|---|
| Jurisdiction | New Jersey |
| State rate | 6.625% |
| Local taxes | None (except Urban Enterprise Zones at 3.3125%) |
| Maximum combined rate | 6.625% |
| Sourcing | Destination-based |
| Economic nexus | $100,000 OR 200 transactions |
| Tax authority | NJ Division of Taxation |
| Portal | https://www.nj.gov/treasury/taxation/ |
| SST member | No |
| Clothing exemption | Yes -- ALL clothing and footwear exempt |
| Skill version | 2.0 |
Transaction pattern library
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE 6.625% | |
| Clothing and footwear | EXEMPT | NJ exempts ALL clothing and footwear |
| Grocery food | EXEMPT | |
| Prepared food | TAXABLE | |
| SaaS | TAXABLE | NJ taxes SaaS and digital products |
| Canned software | TAXABLE | |
| Digital goods | TAXABLE | |
| Professional services | NOT TAXABLE | |
| Manufacturing equipment | EXEMPT | |
| Prescription drugs | EXEMPT | |
| OTC drugs | EXEMPT | |
| Resale | EXEMPT | |
| Urban Enterprise Zone (UEZ) sales | TAXABLE at 50% rate (3.3125%) | Qualifying retailers in UEZs |
Informational only. Review by qualified professional required before filing.
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Other New Jersey computations in the OpenAccountants Tax Library.
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