1. What is NJ Sales Tax?

New Jersey has a statewide sales tax rate of 6.625% as of 2023. This calculator helps you determine how much sales tax will be added to your purchase in New Jersey.

2. How Does the Calculator Work?

The calculator uses the NJ sales tax formula:

Where:

• \( Purchase \) — The amount before tax in USD
• \( 0.06625 \) — New Jersey's current sales tax rate (6.625%)

3. Importance of Sales Tax Calculation

Details: Knowing the exact sales tax helps with budgeting, expense tracking, and financial planning for both consumers and businesses.

4. Using the Calculator

Tips: Enter the purchase amount before tax in USD. The amount must be greater than 0. The calculator will compute the 6.625% NJ sales tax.

5. Frequently Asked Questions (FAQ)

Q1: Are there any exemptions to NJ sales tax?
A: Yes, certain items like most groceries, clothing, and prescription drugs are exempt from NJ sales tax.

Q2: Does NJ have local sales taxes?
A: No, New Jersey has a uniform statewide sales tax rate with no additional local sales taxes.

Q3: When was the NJ sales tax rate last changed?
A: The rate was reduced from 6.875% to 6.625% effective January 1, 2018.

Q4: How does NJ sales tax compare to other states?
A: NJ's 6.625% rate is moderate compared to other states, which range from 0% to over 7%.

Q5: Is sales tax charged on services in NJ?
A: Most services are not taxed in NJ, with exceptions like certain telecommunications services.