NJ New Jersey State sales tax rates
STATEWIDE SALES TAX RATE
ECONOMIC SALES THRESHOLD
Do you need to collect sales tax in New Jersey?
You’ll need to collect sales tax in New Jersey if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.
Do you have physical nexus in New Jersey?
New Jersey considers a seller to have physical nexus if you have any of the following in the state:
An office or place of business
An employee present in the state
Goods in a warehouse
Ownership of real or personal property
Delivery of merchandise in New Jersey
Independent contractors or other representatives in New Jersey
Provide any maintenance program in New Jersey
Do you have economic nexus in New Jersey?
Effective November 1, 2018, New Jersey considers vendors who make more than $100,000 in sales annually in the state or more than 200 transactions in the state to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state.
Is what you’re selling taxable?
Services in New Jersey are generally not taxable. However – if the service you provide gives any access to information like stock quotes or marketing trends, that information service is not sales tax exempt.
Tangible products are taxable in New Jersey, with a few exceptions. These exceptions include clothes, groceries, and prescription drugs.
Is SaaS taxable in New Jersey?
SaaS is non-taxable in New Jersey.
Collecting Sales Tax
How to Collect Sales Tax in New Jersey if You are Based in New Jersey
Collecting sales tax in New Jersey is fairly easy because New Jersey doesn’t have local sales tax rates. If you have sales tax nexus in New Jersey and sell to buyers in New Jersey just charge the 6.625% state and use tax rate.
Should you collect sales tax on shipping charges in New Jersey?
New Jersey requires you to charge sales tax on shipping of taxable items. If you ship a taxable item and a non-taxable item, you will need to separate the shipping costs based on their respective weights. This way you will not have to charge sales tax on the shipping of the non-taxable item.
If you do not separate the shipping charges between taxable and non-taxable items, you will have to charge sales tax on the shipping charges you bill the customer.
When are Returns Due?
When you file and pay New Jersey sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in New Jersey?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In New Jersey, you will be required to file and remit sales tax either monthly or quarterly.
New Jersey sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.