Running a business in New Jersey? Stay informed about state and local sales tax rules, rates and regulations. Start with our New Jersey state sales tax nexus guide.
If you’re running a business in New Jersey, you are required to collect sales tax if you have physical or economic nexus. It is important you stay on top of sales tax rates, rules and regulations. Here are some answers to your frequently asked questions:
What Is the New Jersey State Sales Tax Rate?
New Jersey state sales tax rate is currently 6.625%. Now, there is a degree of varying local sales tax rates so you should always use a specific lookup calculator or tool for the most accurate rates.
Do I Have Physical Nexus in New Jersey?
The below items constitute physical sales tax nexus if you have any of the following in the state:
- An office or place of business
- An employee working on your behalf in the state
- Goods in a warehouse
- Rentals, leases or licenses to use real property
- Delivery of merchandise in New Jersey
- Independent contractors or other representatives in New Jersey
- Provide any maintenance program in New Jersey
These are the main elements that apply to most sellers but physical nexus may be established in New Jersey through other ways too. This list is not exhaustive. Please reach out to us if you have additional questions or concerns.
Do I Have Economic Nexus in New Jersey?
As of November 1, 2018, New Jersey considers retailers who make or exceed $100,000 in taxable annual sales, or more than 200 transactions in the state to have economic nexus. If you meet these thresholds the state considers you obligated to collect sales tax from buyers in the state.
Is What I’m Selling Taxable?
Tangible products are typically taxable in New Jersey. But as in most things, there are a few exceptions. These exceptions include but are not limited to: groceries and some prescription medications.
On the other hand, services in New Jersey are typically not taxable. However, New Jersey imposes tax on several services. It’s worthwhile to review all services taxable under New Jersey’s sales and use tax statutes to ensure you are not responsible for collecting tax on services you perform in New Jersey.
What is the Filing Frequency in New Jersey?
Depending upon the amount of sales taxes you’ve collected and the status of your sales tax account in New Jersey, you will be required to file sales tax returns on a monthly, quarterly, semi-annual, or annual basis.
All sales tax dates and other information is subject to change, so consult with a sales tax professional if you have questions regarding New Jersey filing requirements.
More Questions?
Staying informed about your state and local sales tax rules will help ensure your business charges customers the right amount, which will make it easier to stay compliant and keep ahead. If you find you have more sales tax questions or concerns, feel free to reach out to us for a free consultative call. There is confidence in collaboration; we would love to collaborate with you.
