Everything You Need To Know About Nj State Sales Tax

Modernizing New Jersey’s Sales Tax Will Level the Playing Field & Help from www.njpp.org

Sales taxes are used by states, counties, and municipalities to generate revenue. In the state of New Jersey, the sales tax rate is 6.625%. This rate applies to retail sales of tangible items as well as certain services. In this article, we’ll take a look at the basics of NJ state sales tax and how it applies to businesses and consumers.

What Is the NJ State Sales Tax Rate?

The current sales tax rate in the state of New Jersey is 6.625%. This rate applies to all retail sales of tangible items and certain services. Retail sales are defined as “sales made for any purpose other than for resale or for use in a business”. The rate is the same regardless of the type of item or service being sold.

Which Items Are Exempt from NJ State Sales Tax?

Certain items are exempt from NJ state sales tax. These include prescription and over-the-counter drugs, food and drink purchased for human consumption off the premises, and clothing and footwear that costs less than $110. Other items exempt from sales tax include textbooks, software, and certain medical supplies and equipment.

What Services Are Subject to NJ State Sales Tax?

In addition to retail sales of tangible items, certain services are subject to NJ state sales tax. These include hotel and motel rooms, repair and maintenance services, storage services, and access to amusement facilities. In addition, some professional services are subject to sales tax, such as legal and accounting services.

Who Is Responsible for Collecting NJ State Sales Tax?

The responsibility for collecting NJ state sales tax falls on the seller. That means businesses must collect the appropriate sales tax from their customers and submit it to the state. Businesses are also required to keep records of all sales tax collected and to file periodic reports with the state.

Are Out-of-State Businesses Subject to NJ State Sales Tax?

Out-of-state businesses are responsible for collecting NJ state sales tax on sales to customers in the state. This includes sales made through websites, catalogs, or other means. Out-of-state businesses must register with the state, collect the appropriate sales tax, and submit it to the state.

Does NJ State Sales Tax Apply to Online Purchases?

Yes, NJ state sales tax applies to online purchases. When making a purchase through a website or other online platform, the seller must collect the appropriate sales tax from the customer and submit it to the state.

Are There Any Penalties for Failing to Collect NJ State Sales Tax?

Yes, there are penalties for failing to collect NJ state sales tax. Businesses that fail to collect the appropriate sales tax may be subject to fines and other penalties. They may also be liable for the unpaid sales tax, plus interest and penalties.

How Do I File NJ State Sales Tax?

Businesses must file sales tax returns with the state on a regular basis. The state provides a variety of online and paper filing options. Businesses must keep accurate records of all sales tax collected and submit the appropriate forms and payment to the state.

Conclusion

The NJ state sales tax rate is 6.625%. This rate applies to retail sales of tangible items and certain services. Certain items are exempt from sales tax, including prescription and over-the-counter drugs, food and drink purchased for human consumption off the premises, and clothing and footwear that costs less than $110. Businesses are responsible for collecting the sales tax from their customers and submitting it to the state. Out-of-state businesses are also subject to NJ state sales tax and must register with the state, collect the appropriate sales tax, and submit it to the state. Failing to collect sales tax may result in fines and other penalties. Businesses must file sales tax returns with the state on a regular basis.