State guide · NJ
New Jersey sales tax and property tax
One sales tax rate from Cape May to the Hudson, clothing that is never taxed, and property tax bills that lead the country.
Facts read on official New Jersey pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6.625%
- Local sales taxes
- None
- Groceries
- Exempt from the state rate
- Clothing
- Exempt
- Median property tax
- $9,358
- Effective property rate
- 1.89% · #2 of 51
New Jersey's property tax is the heaviest in the United States by the median bill: owners paid $9,358 in 2024 on a median home of $496,000 (Census ACS), ranked 1 of 51, with an effective rate of 1.89%, ranked 2. The state answers with benefit checks rather than an exemption on the bill: ANCHOR pays homeowners up to $1,500, and Stay NJ adds up to $6,500 for owners aged 65 and over. Sales tax is simpler than in its neighbors. A single 6.625% rate applies statewide, with no county or city sales tax, and clothing and footwear are exempt with no price limit. Most groceries are exempt too, though candy, soft drinks and prepared food are taxed. Shoppers pay half the rate, 3.3125%, at certified stores in Urban Enterprise Zones and on many in-person purchases in Salem County, while Atlantic City and the Wildwoods add their own tourism taxes.
Total to pay
$106.63
Sales tax $6.63 · 6.63% of the price
| Price before tax | $100.00 |
| State tax · 6.625% | $6.63 |
| Local tax · not charged on this item | $0.00 |
| Total | $106.63 |
Rule applied: general state rate. How this is calculated.
Sales tax in New Jersey
Because no county or town in New Jersey levies a general sales tax, the 6.625% on the receipt is the same in Newark and in a shore town, and the calculator above needs no local rate for ordinary goods. The rate has been 6.625% since January 1, 2018, after 7% from 2006 and 6.875% during 2017. A $2,400 sofa carries $159.00 of tax.
The exceptions push the rate down more often than up. Businesses certified in an Urban Enterprise Zone charge half the rate, 3.3125%, on most goods ordered in person in the zone, which brings the same sofa down to $79.50; cars and energy are left out. Salem County gives the same half rate on qualifying in-person retail sales, but not on vehicles, alcohol, cigarettes, online orders, services, prepared food, lodging or cannabis. Upward, Atlantic City adds a 9% Luxury Tax (3% on drinks sold by the glass), with the combined total held to 12.625%, and Wildwood, Wildwood Crest and North Wildwood levy the Cape May County Tourism Sales Tax. Hotels add a 5% State Occupancy Fee in most towns, a possible municipal occupancy tax, and, since January 1, 2026, a $3 a day surcharge in Newark.
The exemptions are generous on everyday items. Clothing and footwear have no cap: a $400 winter jacket owes $0.00, though fur, accessories and sports gear are taxed. Household paper towels, napkins, toilet tissue and paper plates are exempt, and SNAP purchases are never taxed. Electric cars lost their break: zero emission vehicles have paid the full rate since July 1, 2025. Online purchases taxed below 6.625% owe use tax, which residents can report on the NJ-1040 from a table based on income.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6.625% | no | Single statewide rate: New Jersey has no general county or city sales tax. Reduced rates apply in Urban Enterprise Zones (3.3125% at certified sellers) and on qualifying in-person retail sales in Salem County (half rate). |
| Groceries (food for home) | 0% | no | Most food sold as grocery items is exempt; candy, soft drinks and prepared food are taxable. Items bought with SNAP benefits are exempt even if otherwise taxable. |
| Clothing | 0% | no | Clothing and footwear for human use are exempt with no price cap. Fur clothing, accessories, sport/recreational equipment and most protective equipment remain taxable. |
| Prescription drugs | 0% | no | |
| Urban Enterprise Zone (UEZ) purchases from certified sellers | 3.3125% | Half the state rate on most taxable sales of tangible personal property by UEZ-certified businesses; order placed in person in the zone. Motor vehicles and energy excluded from UEZ benefits. | |
| Salem County in-person retail sales | 3.3125% | Half the regular rate on qualifying in-person retail sales of goods in Salem County; excludes motor vehicles, alcohol, cigarettes, online/mail-order sales, services, prepared food, lodging and cannabis. | |
| Zero emission vehicles (ZEVs) | 6.625% | ZEV exemption repealed by P.L. 2024, c. 19: 3.3125% from Oct. 1, 2024 to June 30, 2025, full 6.625% from July 1, 2025. | |
| Hotel occupancy, State Occupancy Fee | 5% | Charged in addition to Sales Tax in most municipalities (lower rates in Wildwoods, Newark, Jersey City, Atlantic City). |
Local sales taxes
New Jersey has no local sales taxes: In Atlantic City, when both taxes apply, the state rate is reduced so the combined Luxury Tax + Sales Tax cannot exceed 12.625% (Division of Taxation, S&U-4).
Sales tax holidays in 2026
No 2026 sales tax holiday appears in the Division of Taxation's 2026 news list (checked 2026-10-05).
Worth knowing about New Jersey sales tax
- Rate history: 7% from July 15, 2006, 6.875% during 2017, and 6.625% since January 1, 2018. source
- Shoppers pay half the normal rate (3.3125%) on many purchases at UEZ-certified businesses; the program is run by the Department of Community Affairs' UEZ Authority. source
- Electric cars lost their exemption: zero emission vehicles were taxed at 3.3125% from October 1, 2024 and at the full 6.625% from July 1, 2025. source
- Since January 1, 2026, a $3 per day surcharge applies to taxable hotel stays in first-class cities with an international airport, currently only Newark. source
- Atlantic City levies a 9% Luxury Tax (3% on drinks sold by the glass); combined with the state tax it cannot exceed 12.625%. source
- Disposable paper products (towels, napkins, toilet tissue, paper plates) are exempt when bought for household use. source
Property tax in New Jersey
Municipal tax assessors value homes at true value as of October 1 of the year before the tax year, and the municipality collects for itself, the county and the school districts; there is no state property tax levy. Towns revalue at different times, so the state publishes an equalization table every year. On appeal, an assessment is tested against the district's average ratio with a common level range of plus or minus 15%. Appeals go to the County Board of Taxation by April 1 (May 1 after a revaluation, January 15 in Burlington, Gloucester and Monmouth counties), and assessments over $1 million can go straight to the Tax Court.
At the Census ratio of 1.89%, a $500,000 house pays about $9,435 a year. Relief arrives as payments. For the 2025 ANCHOR year, homeowners with income up to $150,000 receive $1,500, and those between $150,001 and $250,000 receive $1,000; renters get $450, or $700 at 65 and over. Many applicants under 65 are filed automatically, and the deadline is November 2, 2026. Stay NJ is reserved for owners 65 and over who lived in the home all of 2025 with income up to $200,000: up to $6,500, paid in February and May 2027, applied for on Form PAS-1 together with the Senior Freeze, which reimburses increases over a base year.
The local bill also carries a $250 deduction for eligible seniors and disabled owners, a $250 veteran deduction and a full exemption for 100% disabled veterans. All these benefits together cannot exceed the property tax actually paid on the main home for the year.
Property tax on a home in New Jersey
Typical bill per year
$9,360
| Per month | $780 |
| Median effective rate in New Jersey | 1.89% |
| Median bill paid | $9,358 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | New Jersey |
|---|---|
| Median home value (owner-occupied) | $496,000 |
| Median real estate taxes paid | $9,358 |
| with a mortgage | $9,435 |
| without a mortgage | $9,222 |
| Effective rate (tax ÷ value) | 1.89% |
| Rank by effective rate (1 = highest) | 2 of 51 |
| Rank by median bill | 1 of 51 |
How the taxable value is set
Property is assessed at 'true value' (market value) as of October 1 of the pre-tax year. Because municipalities revalue at different times, the state publishes an annual equalization table; on appeal an assessment is tested against the district's average ratio within a common level range of plus or minus 15%. Who levies the tax: Local: municipal tax assessors value property and municipalities levy and collect the tax for the municipality, county and school districts; the state Division of Taxation (Property Administration) and county boards of taxation oversee assessment. No state property tax levy.
Other property tax relief
- Stay NJ (homeowners 65+). For the 2025 tax year, maximum benefit $6,500 (income up to $100,000), $5,000 ($100,000.01–$150,000), $4,000 ($150,000.01–$200,000); paid in February and May 2027. Applied for on combined Form PAS-1. source
- Senior Freeze (Property Tax Reimbursement). Reimburses eligible seniors and disabled persons for increases in property tax on their main home over their base year; part of the combined PAS-1 application. source
- $250 senior/disabled and $250 veteran deductions; 100% disabled veteran exemption. Municipally administered deductions from the property tax bill, plus a full exemption for 100% disabled veterans. source
Worth knowing about New Jersey property tax
- The combined total of ANCHOR, Senior Freeze, Stay NJ and the senior/veteran deductions cannot exceed the property taxes paid on the main home for the year. source
- The FY2027 budget (signed June 30, 2026) split the remaining 2026 Stay NJ payment into halves paid in August and November 2026, lowering the total 2026 benefit. source
- Assessment appeals go to the County Board of Taxation by April 1 (May 1 after a revaluation; January 15 in Burlington, Gloucester and Monmouth); assessments over $1 million may go straight to the Tax Court. source
- Municipalities set property values on October 1 for the following tax year; improvements made later can trigger an 'added assessment'. source
- Stay NJ is limited to owners aged 65+ who lived in the home all 12 months of 2025 with income up to $200,000; renters are not eligible. source