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New Jersey state sales tax rate decrease, January 2017

 The New Jersey state sales tax rate will decrease on January 1, 2017.

The New Year will bring a new state sales and use tax rate to New Jersey. Beginning January 1, 2017, the New Jersey sales and use tax will decrease from 7% to 6.875%. The rate will drop further (to 6.625%) on January 1, 2018.

The 6.875% rate applies to services rendered, and tangible personal property or specified digital products sold or delivered, between January 1, 2017 and December 31, 2017. For example, if a product is sold on December 31, 2016 but delivered on January 2, 2017, the 6.875% applies. Additional information, including a sales tax collection schedule, is available from the New Jersey Division of Taxation.

Sales tax drops, fuel tax increases

The sales tax rate is decreasing to help offset a gas tax rate increase, which is funding transportation improvements. Although New Jersey last increased the gas tax in 1988, drivers in The Garden State were loath to pay more taxes at the pump.

The tax on diesel fuel tax on gross receipts remained unchanged on November 1; however, like sales tax, a 12.85% diesel fuel tax rate change will occur in stages. The diesel tax rate jumps to 8.995% of gross receipts for the period January 1, 2017 through June 30, 2017. On July 1, 2017, the 12.85% rate takes effect. Additional information.

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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.