Sales Tax Rules
New Jersey imposes a state sales tax rate of 6.625%, with a maximum combined rate (state plus local) of 6.625% when local taxes are added. Economic nexus is triggered at $100,000 in sales or 200 transactions — meaning out-of-state businesses that exceed this threshold must collect and remit New Jersey sales tax. SaaS and digital software products are generally exempt from sales tax in New Jersey. Groceries are exempt from state sales tax.
SaaS Tax Details
SaaS for business use is generally exempt.
Grocery Details
Groceries are exempt; candy and soda are taxable.
What is the sales tax rate in New Jersey?
New Jersey's state sales tax rate is 6.625%. When local taxes are added, the maximum combined rate can reach 6.625%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in New Jersey?
New Jersey requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales or 200 transactions in a calendar year. Once nexus is established, the business must register, collect, and remit New Jersey sales tax.
Is SaaS taxable in New Jersey?
No. SaaS products are generally exempt from sales tax in New Jersey. SaaS for business use is generally exempt.
Are groceries taxed in New Jersey?
Groceries are generally exempt from sales tax in New Jersey. Groceries are exempt; candy and soda are taxable.
Are digital goods taxable in New Jersey?
Yes. New Jersey taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to New Jersey customers should collect sales tax.
Are clothing items exempt from sales tax in New Jersey?
Yes. Clothing is generally exempt from sales tax in New Jersey, which can provide meaningful savings for residents on everyday purchases.
How often do I need to file sales tax in New Jersey?
New Jersey requires sales tax filing on a Monthly or Quarterly. Online filing is available through the official Department of Revenue portal.
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Official Source
New Jersey Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.