New Jersey

Provinces
New Jersey
Provinces
New Jersey
About
New Jersey
About
New Jersey
New Jersey
New Jersey

Standard rate

The standard sales tax rate in New Jersey for 2024 is 6.625%.

Who is obliged to register sales tax in New Jersey

A remote seller that makes:
  • Retail sale of goods;
  • Specified digital products;
  • Taxable services delivered to New Jersey.
must register and collect New Jersey Sales Tax if he meets either of the economic thresholds.
Standard rate 6.625% Reduced rate - Threshold $100,000
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Threshold

  • The remote seller’s gross revenue from sales of tangible personal property, specified digital products, or taxable services delivered into New Jersey during the current or prior calendar year, exceeds $100,000;
  • The remote seller sold the tangible personal property, specified digital products, or taxable services delivered into New Jersey in 200 or more separate transactions during the current or prior calendar year.
Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.

Online Marketplaces

Remote sellers are not required to collect and remit Sales Tax when sold through a marketplace. New law state: the marketplace facilitator obligates to collect and remit Sales Tax on all marketplace transactions. The marketplace is obliged to collect and transfer the tax even if the seller of the trading platform has not reached the economic threshold. If a remote seller meets either of the economic thresholds and sells only through marketplaces then he must register and may request to be placed on a non-reporting basis for Sales Tax.

Registration procedure

A remote seller can go to the website of the Division of Revenue and Enterprise Services and choose the option “Register as Remote Seller Only” for registration.

Sales tax payment and filing date

Most of the remote sellers after registration will be required to file quarterly returns and make quarterly payments. If businesses collected more than $30,000 in Sales Tax in the prior year then they must do Monthly payments. You must file your quarterly Sales Tax returns on or before the 20th day of the month after the end of the filing period. If the due date falls on a day off, the return and payment are due on the following business day.

Penalty and interest

The late filing returns penalty is 5% of the tax due for each month (or part of a month) the return is late. The penalty for late filing is no more than 25% of the balance due. The Tax Department also may charge a penalty of $100 for each month the return is late. Penalty for late payment of 5% of the tax due. At the end of each calendar year, any unpaid taxes, fines, and interest will be charged an additional penalty interest.

New Jersey Sales Tax Holiday

Your information about New Jersey’s back-to-school sales tax holiday is mostly accurate. The New Jersey back-to-school sales tax holiday for 2024 will take place from August 24th through September 2nd. This tax holiday exempts certain items from the 6.625% state sales tax, including:
  • Computers priced under $3,000;
  • School art supplies;
  • School computer supplies priced under $1,000;
  • School instructional materials;
  • School supplies;
  • Sport or recreational equipment.
The tax holiday typically occurs in late August and lasts for 10 days, consistent with past years’ schedules.

New Jersey Sales Tax Nexus

  • Physical Nexus: Any physical presence in New Jersey, such as an office, warehouse, or employees, creates a physical Nexus for sales tax purposes.
  • Economic Nexus: New Jersey requires remote sellers to collect and remit sales tax if they have more than $100,000 in sales or 200 or more separate transactions in the state in the current or previous calendar year.
October 10, 2024 173
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