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 a purchase in New Jersey.

2. How Does the Calculator Work?

The calculator uses the NJ sales tax formula:

Where:

• \( Amount \) — Purchase amount before tax (USD)
• \( NJ\ Rate \) — New Jersey sales tax rate (6.625%)

Explanation: The calculation multiplies the purchase amount by the NJ sales tax rate (converted to decimal) to determine the tax amount.

3. Importance of Sales Tax Calculation

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

4. Using the Calculator

Tips: Enter the purchase amount in USD. The NJ tax rate is fixed at 6.625%. The calculator will show both the tax amount and total amount including tax.

5. Frequently Asked Questions (FAQ)

Q1: Are all items taxed at 6.625% in NJ?
A: No, some items have different rates. For example, clothing is tax-exempt, and certain urban enterprise zones have reduced rates.

Q2: When was the NJ sales tax rate last changed?
A: The rate was reduced from 7% to 6.625% effective January 1, 2018.

Q3: Are there additional local taxes in NJ?
A: Unlike many states, NJ doesn't have additional local sales taxes beyond the statewide rate.

Q4: How does NJ sales tax compare to neighboring states?
A: PA has 6%, NY has 4% state + local taxes (avg 8.52%), DE has 0% sales tax.

Q5: Is sales tax charged on services in NJ?
A: Most services are exempt, with exceptions like certain telecommunications services.