What items are tax free in NJ?

Lots of everyday essentials are exempt from New Jersey sales tax. In other words, you will not see the 6.625% state rate added at checkout for those purchases.

Which everyday items are exempt from New Jersey sales tax?

The categories presented in the table below are the ones shoppers most commonly see as tax free:

Tax free category	General examples
Grocery-type food meant for home preparation	fresh produce, bread, milk, meat, canned goods
Clothing and footwear	shirts, pants, socks, everyday shoes
Disposable paper products for household use	paper towels, napkins, toilet tissue, paper plates
Medicines	prescription drugs & many over-the-counter drugs

Abovementioned categories are listed as exempt items in the New Jersey Sales Tax Guide.

What is a common reason an item gets taxed anyway?

Prepared food is major item. A grocery item might become taxable if it is sold in a “ready to eat” condition. Candy & soft drinks are also generally taxable.

Do online or out-of-state purchases affect NJ sales and use tax?

Definitely. If a taxable item is shipped into New Jersey and the seller did not collect tax — you may owe use tax instead.

Save the receipt/order confirmation
Check whether the purchase is exempt or taxable in parallel to NJ rules
Apply the correct rate & report it with the return

How can Wasserman Accounting help with NJ sales tax exemptions?

Our dedicated team at Wasserman Accounting may present full compliance with the purchases or sales in New Jersey as well as the state rules. Our team can:

review what you sell — or buy — and locate risk items
aid you in handling exemption certificates the right way
support registration and filings as well as precise sales tax calculations