Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In New Jersey, sales tax is governed by the New Jersey Division of Taxation. As of my knowledge cutoff in 2023, the state sales tax rate is 6.625%, which applies to the sale of most goods and certain services. New Jersey does not allow local jurisdictions like cities or counties to impose their own sales tax, so the state rate is consistent across the entire state. There are, however, exceptions and exemptions to this tax. For example, most clothing and footwear, prescription drugs, and groceries for at home consumption are exempt from sales tax. Additionally, New Jersey occasionally offers a Sales Tax Holiday, during which certain items may be purchased tax-free. Businesses selling taxable goods or services are required to register with the state, collect the appropriate tax, and remit it to the New Jersey Division of Taxation.