New Jersey Sales & Use Tax Exemptions
What is Exempt From Sales Tax In New Jersey?
The sales tax rate was reduced from 6.85% to 6.625% rate. New Jersey applies sales tax on the retail sale, lease, or rental of most goods and some services. There are no additional local sales taxes in the state of New Jersey. More information is provided below about reduced sales tax rates and major New Jersey sales tax exemptions.
In Salem County, the sales tax rate is 3.5% and the 7% state sales tax rate does not apply. This 3.5% Salem County rate only applies to retail sales of tangible personal property made in person at a place of business located within Salem County.
Use tax is also collected on the consumption, use or storage of goods in New Jersey if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of New Jersey on or before February 20th.
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New Jersey Sales Tax Exemptions for Manufacturers
Manufacturers in New Jersey can benefit from a range of sales tax exemptions, designed to reduce the financial burden on production operations. These exemptions apply to essential purchases such as new manufacturing machinery, material handling equipment, repair parts for machinery or equipment, and items that become integral components of the final product, including raw materials and packaging.
By taking advantage of these exemptions, manufacturers can significantly lower their costs and increase efficiency.
Contact Agile Consulting Group’s sales tax consultants for expert guidance on how to navigate these exemptions and ensure full compliance with New Jersey tax laws
New Jersey Sales Tax Exemptions for Trucking
Manufacturers in New Jersey are eligible for sales tax exemptions on a variety of essential purchases. These include, but are not limited to, new manufacturing machinery, material handling equipment, repair parts for machinery and equipment, as well as items that become part of the final product, such as raw materials and packaging.
Taking full advantage of these exemptions can significantly reduce operational costs and improve profitability for manufacturing businesses.
For more details, contact Agile Consulting Group’s sales tax consultants to ensure your business fully leverages these valuable tax benefits.
For more information on New Jersey sales tax exemptions, please visit the sites below.
New Jersey Sales Tax Exemptions Information
New Jersey Sales Tax Research Bulletins
Don't try to reinvent the wheel. There are a number of excellent sales tax rate software solutions in the marketplace and we are partners with ALL of them. Ask us for our input on which would be the best choice for your business and we'll gladly guide you and provide an introduction to one (or several options) available in the marketplace.
Sales Tax Compliance FAQs
Sales tax compliance can be intimidating, but it doesn't have to be!
Do I have to charge sales tax?
You do if your business is considered to be "doing business" within a state. The Supreme Court ruling in SD v. Wayfair on June 21, 2018 changed the standard by which this was determined. Now, if your business has a sufficient volume or revenues or transactions within a state, you have established nexus within that state. Nexus means you have to charge sales tax to your customers within that state.
How do we know if we have sales tax nexus in a state?
Agile will complete a sales tax nexus study to determine in which states you have met or exceeded the nexus thresholds. All we need are your: a) physical locations, and; b) prior years sales records to analyze both revenues and transaction counts per state.
How do I know what sales tax rate to charge?
Don't try to reinvent the wheel. There are a number of excellent sales tax rate software solutions in the marketplace and we are partners with ALL of them. Ask us for our input on which would be the best choice for your business and we'll gladly guide you and provide an introduction to one (or several options) available in the marketplace.
Are my products or services subject to sales tax?
Well, the answer like most everything is sales tax is, "it depends," because each state drafts its own laws and they vary widely from state-to-state. A sales tax consulting firm, such as Agile, should perform a taxability study on the products and services your business sells in any states where you have nexus to determine whether you should be collecting sales tax on your sales of those products or services.
Which sales tax software is best for my business?
There are a number of excellent choices in the sales tax software space. We are a sales tax consulting partner with ALL the available options in the marketplace. Leverage our years worth of firsthand experience with these options to help guide you to the best choice for your business.
How do I register for sales tax with a state?
Agile can do this for you. Most states require the same information to process a registration. Things like: legal entity name, FEIN #, date of incorporation, etc. All states require the names, date-of-birth and social security numbers of officers. Some states will even require a copy of an officer's driver's license.
Should we register or file a voluntary disclosure agreement ("VDA")?
Completing a registration will allow your business to begin collecting taxes going forward. If you have taxes from prior periods to disclose, a VDA will enable you to do so with the added benefit of the penalties being waived.
How do states determine your filing frequency?
Your assigned filing frequency depends on the volume of transactions you have within a state. Many states will ask about your expected volume of sales during the registration (or VDA) process. Some other states will initially default your account to monthly filings. All states will re-evaluate your filing frequency on an annual basis.
Will Agile handle any notices and communications received from the state(s)?
Yes! We will absolutely handle all notices and communications you receive from the state(s) regarding sales and use tax. We provide a comprehensive, turnkey solution to outsource your sales and use tax issues.
How do I determine my taxable sales?
Determining taxable sales is the first, and most important step in determining your monthly sales tax filing obligations. Sales tax software, if properly configured, can solve or at least simplify this process. Combine that with an accurate matrix classifying your products or services taxability, and this becomes a cinch!
Find the sales tax exemptions for your state
Select any state in the map below to view all relevant sales and use tax information available for that state.
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