How do I calculate NJ sales tax?

What’s the simple formula I should use?

Apply the correct rate to the taxable part of the sale. Afterwards, simply round leveraging New Jersey’s rounding rule as outlined below:

Check whether what you’re selling is taxable or covered by NJ sales tax exemptions — general examples cover most unprepared grocery food & most everyday clothing
Choose the rate in accordance with the transaction
Multiply the taxable price by that rate
Round the result to cents — compute to three decimals; $0.005 rounds up
Add the tax to the price in order to get the amount the customer pays

Which NJ sales tax rate should you use?

Most taxable sales use the statewide rate. And New Jersey generally does not add city or county surcharges. A limited group of approved & in-person sales might satisfy qualification criteria for a half-rate program.

Sale type	When it applies	Rate	Taxable price	Sales tax	Total
Standard taxable sale	Most retail transactions statewide	6.625%	$120.00	$7.95	$127.95
Half-rate program sale	Eligible in-person sale by an authorized seller	3.3125%	$120.00	$3.98	$123.98

What if no tax was charged at checkout?

You might still owe NJ sales and use tax once a taxable item is shipped into New Jersey for use & the seller did not collect it.

When should a business get this reviewed?

You should ask for professional assistance if any of following scenarios apply:

You’re not sure an item or service is taxable
A customer hands an exemption certificate and you would like to verify it fits the purchase
You think a reduced-rate program might apply — but you are unsure about eligibility rules for the seller & the location or “in-person” requirements

Wasserman Accounting is ready to aid with NJ sales tax

If you would like a quick check of the setup for collecting & documenting and reporting sales tax, contact us. Our expert team at Wasserman Accounting is ready to present the next best actions.