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Official 2026 State Tax Guide

New Jersey Reverse Sales Tax: Price Before Tax (2026)

New Jersey has a state sales tax rate of 6.625%. Use the calculator below to find the original price.

SOURCE: TAX FOUNDATION & STATE TAX DEPARTMENTS
$
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* Pre-filled with New Jersey state tax rate. You can adjust this if local taxes apply.

State Sales Tax

6.63%

Avg. Local Tax

0.02%

Combined Rate

6.65%

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Update: May 2026

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Ritu Sharma

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Umesh Kant Sharma

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Verified against official 2026 revenue schedules for New Jersey.

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Understanding New Jersey Sales Tax

New Jersey imposes a 6.625% state sales tax with virtually no local additions permitted - making it one of the simpler northeastern states for sales tax compliance. Nearly every taxable transaction in the Garden State carries exactly 6.625%, whether you shop in Newark, Jersey City, Atlantic City, Trenton, or any of New Jersey's 21 counties.

New Jersey's sales tax rate has an interesting recent history. The rate was 7.00% for many years before being reduced to 6.875% in January 2017 and then to 6.625% in January 2018, as part of a tax reform deal that simultaneously raised the state's gas tax. This slight reduction brought New Jersey's rate more in line with neighboring states, though the 6.625% rate is still one of the higher single-state rates in the Northeast. One notable exception: Urban Enterprise Zones (UEZs) in designated economically distressed areas allow qualifying businesses to charge half the state rate - 3.3125% - on most purchases, as an economic development incentive.

Why Reverse Calculation Matters in New Jersey

New Jersey's proximity to New York City creates a complex cross-border commerce environment. Many consumers and businesses operate across the Hudson River, with transactions potentially occurring in either New Jersey (6.625%) or New York City (8.875%). Understanding which jurisdiction's rate applies - and being able to reverse-calculate the pre-tax amount from a total - is essential for businesses with operations in both states.

New Jersey's Urban Enterprise Zone (UEZ) program deserves special attention. In designated zones in cities like Newark, Camden, Trenton, and Bridgeton, qualifying retail businesses can charge half the sales tax rate (currently 3.3125%). Shoppers who know about UEZs specifically seek out these locations for major purchases. Reverse calculation in UEZ areas requires using the 3.3125% rate, not the standard 6.625%.

Sales Tax Rates in Major New Jersey Cities (Quick Look)

City Total Rate
Newark 6.63%
Jersey City 6.63%

General Taxability Guidelines

🍎 Groceries
Exempt
👕 Clothing
Exempt
💊 Prescription Medicine
Exempt

Detailed Tax Rates in Major New Jersey Cities

City / Area
Newark (UEZ)
Standard Rate
6.625%
UEZ Rate
3.3125%
Notes
Urban Enterprise Zone applies
City / Area
Jersey City
Standard Rate
6.625%
UEZ Rate
6.625%
Notes
Standard rate
City / Area
Paterson (UEZ)
Standard Rate
6.625%
UEZ Rate
3.3125%
Notes
Urban Enterprise Zone applies
City / Area
Elizabeth (UEZ)
Standard Rate
6.625%
UEZ Rate
3.3125%
Notes
Urban Enterprise Zone applies
City / Area
Trenton (UEZ)
Standard Rate
6.625%
UEZ Rate
3.3125%
Notes
Urban Enterprise Zone applies
City / Area
Camden (UEZ)
Standard Rate
6.625%
UEZ Rate
3.3125%
Notes
Urban Enterprise Zone applies
City / Area
Atlantic City
Standard Rate
6.625%
UEZ Rate
6.625%
Notes
Standard rate
City / Area
Cherry Hill
Standard Rate
6.625%
UEZ Rate
6.625%
Notes
Standard rate

Detailed Taxability Rules & Exemptions in New Jersey

  • Groceries (food and food ingredients) - exempt from New Jersey sales tax
  • Prescription drugs - fully exempt
  • Non-prescription drugs and certain medical products - exempt
  • Clothing and footwear (most items) - exempt from New Jersey sales tax
  • Urban Enterprise Zone (UEZ) purchases - qualifying retailers charge half-rate (3.3125%)
  • Sales to qualifying nonprofit, religious, and government organizations

Real-World Reverse Calculation Example

You bought a new television in Jersey City, New Jersey for a total of $706.25, inclusive of the 6.625% state rate.

  • Convert rate: 6.625% ÷ 100 = 0.06625
  • Add 1: 1 + 0.06625 = 1.06625
  • Divide: $706.25 ÷ 1.06625 = $662.44 (pre-tax price)
  • Tax: $706.25 − $662.44 = $43.81
  • Original price before tax: $662.44 | New Jersey sales tax: $43.81

New Jersey Sales Tax Compliance & Filing

New Jersey sales tax is administered by the New Jersey Division of Taxation. Businesses must register for a Certificate of Authority before making taxable sales. Filing is monthly, quarterly, or annually based on average monthly liability. Monthly filers have returns due on the 20th of the following month. New Jersey's economic nexus threshold is $100,000 in New Jersey sales or 200 transactions in the current or prior calendar year. New Jersey also participates in the Streamlined Sales Tax (SST) agreement.

Official Citations & Sources

  • Tax data sourced from the New Jersey Division of Taxation, which administers a 6.625% statewide rate — Urban Enterprise Zones have a reduced rate of 3.3125%.
  • Rate and UEZ designations verified through NJ Division of Taxation's 2026 Sales Tax Guide.
  • Official Link: N.J. Division of Taxation - Official Website

Frequently Asked Questions - New Jersey Sales Tax

Most clothing is exempt from New Jersey sales tax. This is one of NJ's most shopper-friendly features. Exceptions include fur clothing, clothing accessories (handbags, jewelry, watches), and sports/protective gear - these are taxable at 6.625%.
New Jersey's UEZ program designates certain economically distressed areas where qualifying retail businesses can charge half the state sales tax rate - 3.3125% instead of 6.625%. This incentivizes shopping in historically underserved communities.
No. Food and food ingredients for home consumption are exempt from New Jersey's sales tax. Prepared food, restaurant meals, and food sold ready to eat are taxable at 6.625%.
New Jersey's rate was reduced from 7.00% to 6.875% and then to 6.625% as part of a 2016 tax reform deal. The fractional rate is an artifact of how the reduction was structured - it's an unusual number by design.
Yes. Remote sellers exceeding $100,000 in New Jersey sales or 200 separate transactions delivered to New Jersey customers in the current or prior calendar year must register and collect New Jersey sales tax.

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Legal Disclaimer: While we strive to maintain accurate and up-to-date tax rate information from reliable sources, tax rates can change frequently. Always verify current rates with your local tax authority or a qualified tax professional for official tax matters. This calculator is for informational purposes only and does not constitute professional tax, legal, or financial advice.

Last Updated: April 2026 Rates Subject to Change