New Jersey Sales Tax Calculator
What is this New Jersey Sales Tax?
The New Jersey Sales Tax is a fee that consumers in New Jersey must pay on most retail purchases. This tax is levied at the state level and is meant to provide revenue for state and local governments.
In most US states, sales tax can be levied at three distinct levels, or jurisdictions: the state, county, and city or municipality. However, residents of New Jersey only need to pay sales tax at the state level. The overall sales tax rate for New Jersey is 6.625%. It's worth noting that Millville, a town in New Jersey, applies an additional special sales tax rate of 2%.
Certain items are exempt from the New Jersey Sales Tax, such as food, clothing, drugs, and manufacturing/processing machinery and equipment. There is also a resale exemption in place. The Urban Enterprise Zones rate, which applies to specified areas in an attempt to foster growth and development, is one-half the sales tax rate.
How to Use the New Jersey Sales Tax Calculator
This tool is designed to help you quickly and accurately assess the amount of sales tax you'll be charged for a purchase made in New Jersey. It requires two inputs: the purchase amount and the location's ZIP code. The calculator then instantly shows you the amount of tax you can expect to pay.
Bear in mind that the tool uses the state tax rates applicable in New Jersey as of October 2022. You must use this tool for instructional purposes only and consider the results it returns as an estimation.
Example of Using the Calculator
For instance, let's say you live in a New Jersey city, and your ZIP code is 7305. You're planning to buy a car for $16,000. You would input 7305 as the ZIP code and $16,000 as the purchase price into the calculator.
The tool would then calculate and show a result of $1,060.00. This result represents the amount of New Jersey sales tax you'd have to pay for this purchase. The calculator also provides a breakdown of how the tax applies in this case, showing that only a New Jersey sales tax rate of 6.625% on the state level applies.
Let's take another scenario: suppose you decide to make a $1,000 purchase in New Jersey. The calculator will multiply the sales tax rate (6.625%) by the purchase amount ($1,000), and you'd have to pay a New Jersey sales tax of $66.25.
By providing a quick and easy way to determine the amount of sales tax you'll pay on a purchase, this calculator can prove very handy to both individuals and businesses making purchases in New Jersey.