What Items Are Exempt From Sales Tax in New Jersey?

New Jersey doesn’t collect sales tax on most prescription drugs, groceries, and clothing.
Some items may not be eligible for reduced sales tax rates, such as expensive clothing, unhealthy food/drinks, and certain non-essential pharmaceuticals.
Items like groceries, household paper products, medicine, and clothes are exempt from all sales taxes.
Gasoline purchases are not subject to the New Jersey Sales Tax, but a Gasoline Excise Tax does apply.
Some counties in New Jersey have a local sales tax rate of 3.5% in addition to the statewide rate.

The sales tax rate in New Jersey is 6.625%, while some counties collect a 3.5% local sales tax instead of the state tax.
Articles of clothing or footwear for human use are generally tax exempt in New Jersey.
Etsy does not automatically charge sales tax.
New Jersey first adopted a 2% sales tax in 1935, repealed it quickly, and then reinstated it at 3% in 1966.
Since then, the base sales tax rate has risen to 6.625%.

Services tax depends on where they are performed or sold.
Tangible personal property serviced in New Jersey but delivered out of state is exempt.
The Bulk Sale Statute protects purchasers from inheriting sellers’ tax debt when buying business assets.
Additional exempt categories in New Jersey include certain professional services, real estate sales, unprepared food, straws, and sunglasses.