If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In New Jersey, the first step is visiting the Division of Revenue and Enterprise Services website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in New Jersey?
The retail sales of tangible goods are subject to sales tax in New Jersey, as are most services on tangible personal property. Exemptions from sales tax include grocery items, most clothing and footwear, disposable paper products, prescription drugs, and over-the-counter drugs.
New Jersey Sales Tax Rate
The sales tax rate in New Jersey is 6.625%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for New Jersey Sales Tax
In New Jersey, acquire a seller’s permit by following the division of revenue and enterprise services’ detailed instructions for registration:
- Fill out the registration form on the state’s business portal.
- Pay the $125 business registration fee. There is no fee for the sales tax permit.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In New Jersey, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.