As an e-commerce seller, you will need to collect sales tax in New Jersey if you have:
(1) Gross revenue exceeding $100,000 or 200 or more separate transactions during the current or prior calendar year (economic nexus), or
(2) Physical presence in New Jersey (physical nexus).
Below, we will highlight some of the basic provisions of New Jersey sales tax law.
What is the tax rate range for New Jersey?
State: New Jersey’s general sales tax rate is 6.625%.
Local: New Jersey does not have local sales tax jurisdictions.
Do you have physical or economic nexus in New Jersey?
Physical nexus. Certain business activities create physical nexus for retail merchants in New Jersey. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to New Jersey. Examples of business activities that can create physical nexus:
- Maintaining an office, distribution house, showroom, warehouse, service enterprise (e.g., restaurant, entertainment center, business center, etc.), or other place of business in New Jersey
- Having employees, independent contractors, agents, or other representatives (including salespersons, consultants, customer representatives, service or repair technicians, instructors, delivery persons, and independent representatives or solicitors acting as agents of the business) working in New Jersey
Economic nexus. Remote sellers and marketplace facilitators that have gross revenue exceeding $100,000 or 200 or more separate transactions during the current or prior calendar year are required to collect and remit New Jersey sales or use tax. Additional information:
- Sales you make through a marketplace are included in determining whether you meet the threshold.
- A remote seller that is over the economic threshold, but sells solely through one or more marketplaces must register, may request to be placed on a non-reporting basis for Sales Tax, since the marketplace is required to collect the tax on all marketplace transactions.
- A remote seller that is over the economic threshold, but only makes nontaxable sales must register, may request to be placed on a non-reporting basis for Sales Tax.
- It appears that the registration and collection obligations begin immediately once the threshold is reached. Marketplace facilitators may request a suspension not to exceed 180 days upon written request, but it does not appear that remote sellers can do so. You should plan ahead if it appears that you may pass the threshold in the next several weeks.
What are examples of sales of taxable items?
- Tangible personal property, unless specifically exempted
- Certain services, including information services and mailing services
- Leasing or renting tangible personal property
- Digital goods
What are examples of sales of nontaxable/exempt items?
- Food (except candy, soft drinks, and prepared food)
- Most clothing and footwear
- Over-the-counter and prescription drugs
- Certain agricultural items
- Software as a Service (SaaS), unless SaaS meets the definition of an information service – see TB-72
Are there any sales tax holidays?
Currently, New Jersey has an annual sales tax holiday for ten days ending with the first Monday of September for purchases of computers, school art supplies, school computer supplies, school instructional materials, school supplies, and sport or recreational equipment.
Is New Jersey a member of the SST (Streamlined Sales Tax)?
Currently, New Jersey is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in this state?
You can register at:
New Jersey is a one-rate state (6.625%), there are no local jurisdictions that impose a sales tax.