How New Jersey sales tax works
New Jersey imposes a statewide sales and use tax on most retail purchases. Some municipalities add local surcharges through special improvement or urban enterprise districts. The combined rate you pay depends on where the sale occurs. This calculator adds or extracts New Jersey state and local sales tax using rates effective January 1, 2025.
Retailers who set prices from cost and profit targets can combine margin planning with tax using the margin sales tax calculator. For general value-added or goods-and-services tax outside the United States, the GST calculator handles forward and reverse tax extraction on net or gross prices.
New Jersey sales tax formulas
The New Jersey Division of Taxation sets the state base rate at 6.625%. Local jurisdictions may add their own rate. To calculate tax on a pre-tax price:
When you only know the tax-inclusive total, extract the embedded tax with:
Worked example: $100 purchase at the state rate
A $100 pre-tax purchase at the standard New Jersey state rate of 6.625% carries no local surcharge. State tax is $6.63 and the customer pays $106.63 at checkout. In Millville, a 2% special district rate applies on top of the state rate for a combined 8.625%, producing $8.63 tax and a $108.63 total on the same $100 base.
Frequently asked questions
What is the New Jersey state sales tax rate?
Does New Jersey tax groceries or clothing?
When should I use extract mode instead of add mode?
Why does Millville have a higher rate?
Are online purchases taxed the same way?
Resources and references
The formulas and methods in this calculator were checked against these independent sources.