New Jersey sales tax affects every purchase you make on taxable goods in the Garden State. The statewide rate is 6.625%, and it ranks among the higher rates in the country. However, New Jersey offers some of the most generous exemptions in the nation. Clothing, groceries, and medicine are all completely tax-free. Understanding how New Jersey sales tax works can save you real money throughout the year. This guide breaks down everything shoppers need to know in 2026.
New Jersey Sales Tax Rate: The Basics
The New Jersey sales tax rate is 6.625% statewide. Unlike most states, New Jersey does not allow cities or counties to add local taxes. As a result, you pay the same rate whether you shop in Newark, Princeton, or Cape May. This makes calculating your total cost simple and predictable.
| Tax Component | Rate |
|---|---|
| State Sales Tax Rate | 6.625% |
| Maximum Local Tax Rate | 0.000% |
| Combined Sales Tax Rate | 6.625% |
| National Average Combined Rate | ~7.38% |
The combined rate falls below the national average. That is good news for New Jersey shoppers. In addition, the lack of local taxes means no surprises when you cross county lines. A $100 taxable purchase costs you exactly $106.63 anywhere in the state. You never need to wonder if the next town charges more.
What New Jersey Does and Does Not Tax
New Jersey sales tax does not apply to many everyday purchases. The state exempts all clothing, footwear, groceries, prescription drugs, and over-the-counter medications. Disposable paper products like toilet paper and paper towels are also exempt. This is a major benefit for shoppers. For example, a $200 pair of running shoes costs exactly $200 at checkout.
However, not everything you wear is tax-free. Fur clothing, handbags, jewelry, and sports equipment are all taxable. Specifically, items like watches, wallets, umbrellas, and wigs are considered accessories. They carry the full 6.625% tax rate at the register.
| Category | Taxed? | Notes |
|---|---|---|
| Groceries (unprepared food) | Exempt | Most food for home cooking is tax-free |
| Clothing and footwear | Exempt | All general apparel at any price point |
| Prescription drugs | Exempt | Always tax-free |
| Over-the-counter medicine | Exempt | Pain relievers, cold medicine, vitamins |
| Disposable paper products | Exempt | Paper towels, toilet paper, napkins |
| Prepared food and restaurant meals | Taxed | 6.625% applies |
| Electronics and appliances | Taxed | Full rate on all devices |
| Furniture and home goods | Taxed | Full rate applies |
| Jewelry and accessories | Taxed | Handbags, watches, wallets included |
| Candy and soft drinks | Taxed | Taxed separately from groceries |
The clothing exemption alone makes New Jersey a destination for bargain hunters from other states. If you are planning a big wardrobe refresh, check out our best time to buy calendar to pair tax-free clothing with seasonal sales.
New Jersey Sales Tax by City and County
Because New Jersey charges no local sales taxes, the rate is 6.625% in every city and county. You will not find different rates from town to town. This is unusual in the United States and makes shopping across the state straightforward.
However, there are two important exceptions shoppers should know about. Salem County retailers who qualify can charge a reduced rate of just 3.3125% on in-person purchases. This half-rate exists because Salem County borders Delaware, which has no sales tax at all. In addition, certified businesses in Urban Enterprise Zones charge the same 3.3125% reduced rate.
| Location | Sales Tax Rate | Notes |
|---|---|---|
| Newark | 6.625% (3.3125% at UEZ stores) | Urban Enterprise Zone city |
| Jersey City | 6.625% (3.3125% at UEZ stores) | Urban Enterprise Zone city |
| Paterson | 6.625% (3.3125% at UEZ stores) | Urban Enterprise Zone city |
| Elizabeth | 6.625% (3.3125% at UEZ stores) | Urban Enterprise Zone city |
| Trenton | 6.625% (3.3125% at UEZ stores) | Urban Enterprise Zone city |
| Camden | 6.625% (3.3125% at UEZ stores) | Urban Enterprise Zone city |
| Salem County (qualifying retailers) | 3.3125% | In-person retail purchases only |
| All other NJ locations | 6.625% | Uniform statewide flat rate |
The UEZ reduced rate only applies at certified retailers. Look for UEZ signage at the store entrance or register. Specifically, the discount covers in-person purchases of tangible goods only. It does not apply to online orders, services, prepared food, or motor vehicles. New Jersey has 37 UEZ cities in total across 32 designated zones.
New Jersey Sales Tax Holidays
New Jersey does not currently have a sales tax holiday. The state offered a back-to-school tax-free period in 2022 and 2023. It covered computers, school supplies, and sports equipment for 10 days before Labor Day. However, the legislature repealed the program in mid-2024. Governor Murphy signed the repeal into law on June 28, 2024.
The state estimated the holiday cost about $35 million per year. As a result, lawmakers eliminated it during budget adjustments. There are no plans to reinstate it for 2026. This means New Jersey shoppers must pay full tax on electronics and school supplies year-round.
If you live near the border, several neighboring states still hold tax holidays. Connecticut and Maryland both offer annual back-to-school events. However, remember that New Jersey’s clothing exemption already gives you year-round savings on apparel and shoes. For the best deals on school shopping, combine store sales with our coupon stacking strategies to offset the tax.
Online Shopping and New Jersey Sales Tax
New Jersey sales tax applies to online purchases the same way it does in stores. The state uses destination-based sourcing. This means the tax rate depends on where you receive the item. Since the rate is a flat 6.625% everywhere in New Jersey, calculating online tax is simple.
Amazon, Walmart, Target, and other major retailers collect New Jersey sales tax automatically at checkout. Marketplace platforms like eBay, Etsy, and Facebook Marketplace also collect and remit tax on your behalf. This is required under the state’s marketplace facilitator law. You do not need to track or report these purchases separately.
🔥 Get Free Deal Alerts
Free · No spam · Unsubscribe anytime
The same exemptions apply online as in physical stores. Clothing and groceries remain tax-free whether you buy them in person or on a website. For example, ordering sneakers on Zappos ships to New Jersey without any sales tax added. For more ways to reduce your costs on online orders, browse our complete guide to saving money shopping online.
Smart Shopping Tips for New Jersey
New Jersey already gives shoppers a head start with its generous exemptions. Here are specific ways to maximize your savings even further.
Buy clothing in New Jersey instead of New York. New York charges sales tax on clothing items priced over $110 each. New Jersey exempts all clothing regardless of price. A $500 winter coat saves you over $44 compared to buying it across the Hudson River in Manhattan.
Shop Salem County for taxable items. If you live in southern New Jersey, qualifying Salem County retailers charge just 3.3125%. That cuts your tax nearly in half on electronics, furniture, and home goods. It is worth the drive for big-ticket purchases.
Look for UEZ stores in major cities. Certified Urban Enterprise Zone retailers in Newark, Jersey City, Camden, Trenton, and other cities charge the 3.3125% reduced rate. In addition, this applies to most physical goods purchased in person. Ask if the store is UEZ-certified before you buy.
Use cashback apps on taxable purchases. Since you cannot avoid the 6.625% rate on electronics and home goods at most stores, offset it with cashback rewards. Check our cashback app reviews for the best options in 2026. Stacking a 5% cashback offer nearly cancels out the entire tax.
Time your big purchases around sales events. Without a sales tax holiday, timing matters even more. Watch for Black Friday, Prime Day, and seasonal clearance events on taxable items. Visit our shopping guides for category-specific advice on the best time to buy everything from laptops to mattresses.
Frequently Asked Questions
What is the sales tax rate in New Jersey?
The New Jersey sales tax rate is 6.625%. There are no local or county taxes added on top of that. The rate is identical in every city and town across the state. Certified UEZ retailers and qualifying Salem County stores charge a reduced 3.3125% rate on eligible in-store purchases.
Are groceries taxed in New Jersey?
No. Most unprepared food and groceries are exempt from sales tax in New Jersey. This includes fruits, vegetables, meat, bread, dairy, and other staples you cook at home. However, prepared foods, candy, and soft drinks are taxable at the full 6.625% rate.
Does New Jersey have a sales tax holiday?
No. New Jersey had a back-to-school New Jersey sales tax holiday in 2022 and 2023. It covered computers, school supplies, and sports equipment. However, the legislature repealed the program in 2024. There are no tax-free shopping days scheduled for 2026. Clothing and footwear remain exempt from New Jersey sales tax year-round, which provides ongoing relief.
Start Saving on Every Purchase
Now that you know your state’s sales tax rates, use that knowledge to time your purchases and stack savings. Combine tax-free shopping periods with cashback apps and coupon codes to keep more money in your pocket.
Official Sources
- Tax Foundation — state and local sales tax data
- IRS.gov — federal tax information
- FTC Consumer Information — shopping rights and protections
Rates current as of May 2026. Sales tax rates change periodically. Always verify current rates with your state’s revenue department.