What’s taxable and exempt in New Jersey?

In New Jersey, not all goods and services sold in New Jersey may be considered taxable for sales tax purposes. Let’s understand what types of products and services are taxable in New Jersey.

Let’s start with a list of taxable products and services in New Jersey. 

Taxable Products and Services in New Jersey

The following are some of the taxable products and services in New Jersey.

• • Tangible Products: Physical items are generally taxable. 
  • Digital Products: Goods delivered or accessed electronically, like media streaming services and eBooks. 
  • Specific Services: Some services, such as maintenance and repair, are taxable. 
  • Transient Accommodations: Short-term rentals like vacation rentals and rooms. 
  • Shipping Charges: If the item that you’re shipping is taxable, then shipping charges are also taxable. 

Next, let’s understand what types of products and services are considered exempt in New Jersey. 

Exempt Products and Services in New Jersey 

The following are some of the exempt products and services in New Jersey.

• Most Food and Drink: Items bought in a food store for human consumption are generally exempt. 
• Clothing: Most articles of clothing are exempt from sales tax. 
• Prescription Drugs: Both prescription and many over-the-counter drugs are exempt. 
• Educational Services: Tuition fees for educational institutions are generally exempt. 
• Certain Agricultural Supplies: Farm machinery and livestock feed are exempt. 
• Resale Items: Items purchased for resale are exempt when a valid resale certificate is provided. 

Next, let’s understand when sales tax is due in New Jersey for foreign sellers selling remotely.