Sales Tax

Sales Tax in New Jersey: Complete Guide 2026

Updated 2026-03-10

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Sales Tax in New Jersey: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

New Jersey imposes a ~6.625% statewide sales tax rate with no local add-ons, giving it a uniform rate across the entire state. New Jersey is particularly notable for its complete exemption of clothing, footwear, and unprepared food — making it a popular shopping destination for residents of neighboring states. The state also designates certain areas as Urban Enterprise Zones (UEZs) where qualifying retailers charge a reduced rate of approximately ~3.3125% (half the standard rate).

New Jersey Sales Tax Rates (2026)

ComponentRate
Standard statewide rate~6.625%
Urban Enterprise Zone (UEZ) rate~3.3125%
Local sales taxNot applicable

Uniform Rate Across All Areas

LocationRate
Newark~6.625% (UEZ ~3.3125% for qualifying retailers)
Jersey City~6.625%
Paterson~6.625% (UEZ ~3.3125% for qualifying retailers)
Trenton~6.625% (UEZ ~3.3125% for qualifying retailers)
Atlantic City~6.625%
Princeton~6.625%
Cherry Hill~6.625%
Edison~6.625%
Morristown~6.625%
Hoboken~6.625%

New Jersey does not permit local governments to impose their own sales taxes, so the rate is uniform statewide except for the reduced UEZ rate.

Urban Enterprise Zones

New Jersey designates approximately 30 Urban Enterprise Zones across the state. Qualifying retailers within these zones charge half the standard sales tax rate (approximately ~3.3125%) on eligible in-person purchases. Major UEZ cities include Newark, Paterson, Trenton, Camden, Elizabeth, and Plainfield.

To qualify:

  • The purchase must be made in-person at a qualifying UEZ retailer
  • The retailer must be registered and approved for the UEZ program
  • Online and delivery orders from UEZ retailers generally do not qualify for the reduced rate

The Clothing Exemption

New Jersey’s most consumer-friendly provision is its complete exemption of all clothing and footwear from sales tax. Unlike New York (which caps at ~$110 per item), New Jersey exempts:

  • All clothing regardless of price
  • All footwear regardless of price
  • Fur clothing, designer apparel, sports clothing
  • Children’s clothing, uniforms, formal wear

This makes New Jersey one of the most attractive states for clothing purchases, particularly for higher-priced items. A $1,000 suit that would cost approximately $89 in sales tax in New York City costs $0 in sales tax in New Jersey.

Taxable vs. Exempt Items

Exempt from New Jersey Sales Tax

  • All clothing and footwear (no price limit)
  • Unprepared food and groceries
  • Prescription medications and medical devices
  • Over-the-counter medications
  • Disposable paper products (paper towels, toilet paper, tissues)
  • Residential energy (gas, electric for home use)

Taxable Items

  • Prepared food and beverages (restaurant meals, heated food)
  • Electronics, furniture, appliances
  • Vehicles (subject to ~6.625% sales tax)
  • Alcohol (subject to sales tax; no separate excise tax at retail)
  • Tobacco and vaping products
  • Cosmetics and personal care products
  • Handbags, jewelry, and accessories (these are taxable even though clothing is exempt)
  • Digital products (downloaded software, streaming services — generally taxable)

How New Jersey Compares to Neighboring States

StateState RateCombined RateClothing Exempt?Grocery Tax
New Jersey~6.625%~6.625%Fully exemptExempt
New York~4.00%~8.52% avgUnder ~$110Exempt
Pennsylvania~6.00%~6.34% avgFully exemptExempt
Delaware0.00%0.00%N/AN/A
Connecticut~6.35%~6.35%Under ~$50Exempt
National Avg.~5.09%~6.60%VariesVaries

New Jersey’s ~6.625% rate is above the national average for combined rates but competitive when factoring in the broad exemptions. Delaware has no sales tax at all but imposes a gross receipts tax on businesses that may be passed through in higher prices.

Tips for Minimizing New Jersey Sales Tax

  1. Buy clothing and shoes in New Jersey. If you live near the New York or Pennsylvania border, purchasing high-end clothing in New Jersey saves the full applicable tax. A $500 winter coat purchased in NYC would incur approximately ~$44 in sales tax; the same coat in New Jersey costs $0 in sales tax.

  2. Shop at Urban Enterprise Zone retailers. If you need to buy taxable goods (electronics, furniture), qualifying UEZ retailers charge only ~3.3125% — roughly half the standard rate. This saves approximately ~$33 per $1,000 spent.

  3. Buy groceries, not prepared food. The grocery exemption covers unprepared food, but restaurant meals and prepared foods at grocery stores are fully taxable.

  4. Consider Delaware for major electronics or appliance purchases. Delaware has no sales tax at all. A $2,000 laptop costs approximately ~$133 less in Delaware than in New Jersey.

  5. Understand the vehicle sales tax. New Jersey charges ~6.625% on vehicle purchases with limited exemptions. If purchasing from a private seller, you pay use tax when registering the vehicle.

  6. Claim applicable exemptions for businesses. New Jersey offers exemptions for manufacturing machinery, R&D equipment, and goods purchased for resale with a valid Resale Certificate (Form ST-3).

Key Takeaways

  • New Jersey’s ~6.625% sales tax rate is uniform statewide with no local add-ons
  • All clothing and footwear are completely exempt from sales tax — the broadest clothing exemption among states that have sales tax
  • Groceries, prescription drugs, OTC medications, and disposable paper products are exempt
  • Urban Enterprise Zones offer a reduced ~3.3125% rate at qualifying retailers
  • Delaware’s zero sales tax creates cross-border shopping incentives for southern New Jersey residents

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