New Jersey Sales Tax for Online Sellers
Accounting and tax services in New Jersey are essential for US small businesses selling online. If you’re delivering goods or digital products to customers in the state, it’s important to understand your sales tax obligations.
This guide covers the statewide rate, nexus thresholds, filing requirements, and upcoming changes—so you can stay compliant and focused on growth. Whether you’re new to eCommerce or scaling your operations, clear guidance helps you avoid penalties and build a solid foundation for success.
1. New Jersey’s Sales Tax Rate
New Jersey applies a statewide sales tax rate of 6.625%. Unlike many other states, there are no local sales taxes, which makes things simpler for sellers.
What is taxable:
- Most tangible personal property (e.g., electronics, furniture, beauty products)
- Certain digital products (like downloadable books, music, and videos)
Common exemptions include:
- Unprepared food
- Prescription drugs
- Most clothing
- Software as a Service (SaaS), though this may change in the future
If you sell mixed goods, it’s important to review which items are taxable under New Jersey law.
2. Sales Tax Nexus for Online Sellers
Sales tax nexus means you have a legal obligation to collect and remit sales tax to New Jersey. There are two types of nexus: economic and physical.
Economic Nexus
You are required to register and collect sales tax in New Jersey if, during the current or previous calendar year, your business meets either of the following:
- Over $100,000 in gross revenue from sales into New Jersey, or
- At least 200 separate transactions shipped to New Jersey customers
Upcoming change in 2025: New Jersey may remove the 200-transaction threshold if Senate Bill 3604 passes. If this happens, only the $100,000 sales threshold will determine economic nexus. This change is designed to streamline the rules and broaden tax compliance among remote sellers.
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Physical Nexus
You also have nexus if your business has any kind of physical presence in New Jersey, such as:
- An office, warehouse, or storefront
- Employees or agents working within the state
- Inventory stored in or shipped from a location inside New Jersey
Even a temporary presence or affiliate arrangement may create physical nexus.
3. Filing and Paying Sales Tax in New Jersey
Once you’ve established nexus, you must register for a New Jersey sales tax permit and begin collecting tax at the point of sale.
Filing schedule:
- Quarterly filings, due on the 20th day of the month following the end of each calendar quarter:
- Q1: April 20
- Q2: July 20
- Q3: October 20
- Q4: January 20 (following year)
New Filing System in 2025:
Beginning May 14, 2025, New Jersey will launch a new taxpayer portal for filing and payments. All businesses will be required to use this modernized platform to stay compliant with state filing requirements.
Summary
Navigating New Jersey Sales Tax for Online Sellers doesn’t have to be complicated. The 6.625% statewide rate, clear nexus thresholds, and quarterly filing schedule provide a straightforward structure—but staying on top of updates, like changes to economic nexus or digital filing systems, is key.
If you’re a US small business selling online into New Jersey, understanding your sales tax obligations now can save you time, reduce risk, and support long-term growth. For many sellers, the right accounting and tax support is an essential step in managing compliance with confidence.
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