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New Jersey state sales tax to drop in 2018


 The New Jersey state sales tax rate will drop on Jan. 1, 2018.

As part of an ongoing plan to offset 2016 and 2017 fuel tax rate increases New Jersey is dropping the state sales tax rate to 6.625 percent as of Jan. 1, 2018. It’s the second state sales tax rate decrease since late 2016.

The New Jersey Division of Taxation reminds businesses to make all necessary changes to their point of sale systems by January 1 “to make sure they’re charging the correct amount of New Jersey sales tax.” It adds that the rate change does not affect the taxability of any products or services. “What was taxable before is still taxable, just at the new, lower rate.”

Tax automation software helps rate transitions go smoothly. Learn how it works.

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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.