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NJ Sales Tax Formula:
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New Jersey state sales tax is a consumption tax imposed on the sale of goods and certain services. The current statewide sales tax rate is 6.625%, which is applied to the purchase amount of taxable items.
The calculator uses the NJ sales tax formula:
Where:
Explanation: The formula calculates the sales tax amount by multiplying the purchase amount by New Jersey's standard sales tax rate of 6.625%.
Details: Accurate sales tax calculation is essential for budgeting, financial planning, business accounting, and ensuring compliance with New Jersey tax laws. It helps consumers understand the true cost of purchases and businesses properly collect and remit taxes.
Tips: Enter the purchase amount in dollars (without dollar sign). The calculator will automatically compute the NJ sales tax and total amount including tax. All values must be positive numbers.
Q1: What is the current NJ sales tax rate?
A: The current New Jersey state sales tax rate is 6.625% as of 2024. This rate applies statewide to most taxable goods and services.
Q2: Are there any exemptions from NJ sales tax?
A: Yes, New Jersey exempts certain items including most groceries, clothing, prescription drugs, and some services. There are also special rules for certain industries and situations.
Q3: Do local municipalities add additional sales tax?
A: No, New Jersey has a uniform statewide sales tax rate. Unlike some states, municipalities in NJ do not impose additional local sales taxes.
Q4: When did NJ sales tax change to 6.625%?
A: The sales tax was reduced from 7% to 6.625% effective January 1, 2018, as part of the "Fairness Formula" legislation.
Q5: Is online shopping subject to NJ sales tax?
A: Yes, online retailers are required to collect NJ sales tax on purchases shipped to New Jersey addresses, following the South Dakota v. Wayfair Supreme Court decision.