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What items are exempt from sales and use tax in New Jersey?

January 8, 2026Tax Filing & Compliance5 min read

Learn what items are exempt from sales and use tax in New Jersey. Common exempt items and which certificates sellers may request are explained.

What items are exempt from sales and use tax in New Jersey?

What items are exempt from sales and use tax in New Jersey?

New Jersey exempts specific essentials and some business-purpose purchases from tax. Therefore, the charge generally won’t apply at checkout or when you self-report New Jersey use tax.

What are common New Jersey sales tax exemptions?

The categories presented below are widely treated as exempt in line with the New Jersey sales tax exemptions:

Exempt category

Examples

Common “gotcha”

Grocery food meant for home preparation

produce, bread, milk, raw meat

hot or ready-to-eat items can be treated in a distinct way

Clothing and footwear for everyday wear

shirts, jeans, socks, sneakers

accessories and specialty gear might be taxable

Medicines and specific health items

prescriptions plus many OTC products

tax treatment can hinge on the product type

Disposable paper products for household use

paper towels, tissues, napkins

“household use” is part of the rule

Merchandise purchased for resale

inventory bought to sell to customers

the seller generally needs a completed ST-3 resale certificate

Abovementioned categories are summarized in New Jersey’s Sales Tax Guide (S&U-4).

What documents do businesses need to claim an exemption?

A seller might necessitate a New Jersey exemption form before treating a taxable item as exempt, like the ST-4 Exempt Use Certificate for qualified uses.

How do you check exemption status before paying?

  1. Confirm the item’s category on the invoice line since descriptions matter
  2. Save the copy of the receipt with the transaction entry in the books
  3. If you paid another state’s tax on a taxable item brought into New Jersey — review whether a credit applies before reporting any difference

How can Wasserman Accounting CPAs help with New Jersey exemptions?

If you need assistance with a specific purchase, reach out to Wasserman Accounting CPAs. Our team is ready to review what you sell or buy. We will confirm the right tax treatment and assist you professionally.

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