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New Jersey’s Reduced Sales Tax Rates


 Salem County, NJ, home of the reduced sales tax rate.

Sales tax seems relatively simple in New Jersey. There is only the state sales tax rate of 7%—no local rates to confuse sellers. See? Simple.

Except…

New Jersey has more than 30 Urban Enterprise Zones, in which qualifying businesses “may charge 3.5% sales tax on sales of merchandise qualified for the reduced rate.”

And except…

Certain sales made by businesses within Salem County, New Jersey, are subject to a reduced rate of sales tax (3.5%).  But this reduced rate does not apply to all sales; the regular rate applies to sales of the following:

  • Alcoholic beverages;
  • Cigarettes;
  • Charges for admissions and amusements;
  • Charges for room occupancy;
  • Motor vehicles;
  • Prepared food, meals and beverages;
  • Sales of services (such as maintenance and repairs);
  • Telephone and electronically communicated sales;

In addition, sales made from locations outside the county are subject to the 7% state rate, as are mail-order, catalog and internet sales.

In order for the reduced rate of sales tax to apply, “the sale must be made in person from a place of business regularly operated by the vendor for the purpose of making retail sales.”

The reduced rate of sales tax applies to delivery orders only when the purchaser accepts delivery “at the vendor’s place of business in Salem County, or the vendor … deliver[s] the goods to the purchaser from the vendor’s location in Salem County.”

Read about reduced sales tax rates in Urban Enterprise Zones and Salem County.

Or simply find out how automated sales tax works.

photo credit: J. Stephen Conn via photopin cc


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.