New Jersey alcohol tax permits and rules

DTC License Required: Yes

License Type: DTC Permit

License Fee: $938

License Expiration: 1 year from issue date

License Bond: Yes

Note: Licensees cannot produce more than 250,000 gallons of wine per year and cannot own, either in whole or in part, directly or indirectly, any interest in a winery that produces more than 250,000 gallons per year.

State Sales Tax: Yes

State Sales Tax Rate: 6.625%

Local Sales Tax: No

Sales Tax on Shipping: Yes

Alcohol Beverage Tax: $0.875/gal

Consumer Limit: Limit of 12 nine-liter cases per person per year

Per State Aggregate: Unlimited

Sales and Use Tax: Quarterly by the 20th

Excise Tax: Bimonthly by the 15th

Record Retention: At least 3 years

Litter Control Fee: Due annually by March 20th

Product Restrictions: Only wines produced by the permittee may be sold and shipped to consumers. Licensees cannot produce more than 250,000 gallons of wine per year and cannot own, either in whole or in part, directly or indirectly, any interest in a winery that produces more than 250,000 gallons per year.

Product Registration: Labels approved for wholesale distribution are also approved for direct-to-consumer sales.

Label renewals due on November 30 annually.

Registration Fees: $23 per label

Product Requirements: N/A

*Nearly all states have some kind of rule regarding how wine must be labeled when being shipped direct to consumer. Please check for the unique rule for your state.

Tax can get complicated when it comes to direct-to-consumer (DTC) shipments. The beverage alcohol industry is different from other industries in that licensed alcohol shippers are required to register for sales tax in most states, independent of economic or physical nexus.

Depending on the state, sales and use tax can be applied at the state, county, city, or special district levels. Address accuracy is important to determine if a location falls into an incorporated or unincorporated section of a county or a special district.

On top of the sales tax requirements, alcohol taxes also apply to DTC shipments. Several states have “markup” taxes, where the retail value of the alcohol is multiplied by a percentage rate. Most of these markup taxes are either required or can be passed through to the consumer. 

Traditional “gallonage”-based excise taxes are also usually due on DTC shipments. Most of the time these are factored into the price of the item and not passed through to the consumer. In a few cases, these excise taxes are required to be passed on to the consumer. 

Rules and regulations for your winery, brewery, or other beverage alcohol business change frequently. Avalara for Beverage Alcohol helps distill the beverage alcohol compliance process so you can focus on your business.

New Jersey DOR site

Please note: Tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this page is for informational purposes only and does not provide legal or tax advice.