New Jersey Tax Nexus

Businesses with nexus in New Jersey are required to register with the New Jersey Division of Taxation and to charge, collect, and remit the appropriate tax.

Generally, a business has nexus in New Jersey when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.

New Jersey nexus for out-of-state sellers

Click-through nexus

Referrals, including online referrals, from in-state entities can create nexus for out-of-state businesses under click-through nexus provisions that took effect on July 1, 2014. An out-of-state vendor has nexus in New Jersey if both the following conditions are met:

  • The out-of-state seller enters into an agreement with a New Jersey independent contractor or other representative who, for compensation, directly or indirectly refer potential customers to the out-of-state seller via an internet link or otherwise

  • Cumulative gross receipts from such “click-through” referrals exceed $10,000 during the preceding four calendar quarters

    See N.J.S.A. 54:32B-2(i)(1) and Nexus for Sales and Use Tax.