New Jersey Sales Tax for New Businesses: 6.625%, the Certificate of Authority and the ST-50
New Jersey Sales Tax for New Businesses: 6.625%, the Certificate of Authority and the ST-50
If you sell taxable goods or services in New Jersey, the state expects you to collect sales tax from your customers and send it in on schedule. The rate itself is simple: 6.625% on most taxable sales. The paperwork is where new businesses get caught. You register with the state, display a Certificate of Authority at each location, and file a return every quarter, including quarters when you made no sales. This guide covers those steps in the order you will need them.
Informational content, not legal or tax advice. This guide explains general New Jersey sales tax practice for new businesses. Rates, thresholds and filing rules can change. Confirm current requirements with the New Jersey Division of Taxation at https://www.nj.gov/treasury/taxation/, and talk to a CPA or tax attorney before you rely on any of this, especially if you sell into other states, use a marketplace, or have a complex ownership structure.
The New Jersey sales tax rate: 6.625%
The New Jersey state sales tax rate is 6.625%. It applies to most taxable goods, certain specified digital products and certain services. New Jersey generally has no local sales tax add-ons, so a sale in Newark, Toms River or Cherry Hill is taxed at the same state rate. The exceptions are narrow and each has its own conditions:
| Situation | Rate or treatment | What to confirm |
|---|---|---|
| Certified Urban Enterprise Zone (UEZ) sellers | 3.3125% | Whether your sales qualify and that your UEZ certification is current |
| Qualifying in-person sales in Salem County | 3.3125% | Whether each sale meets the in-person and qualifying rules |
| Atlantic City luxury tax | A separate tax on top of sales tax | The rate and which goods are covered, before you price affected items |
If you are not in one of these situations, charge 6.625% and do not add a city or county surcharge. Counties in New Jersey do not levy a general sales tax of their own.
Who has to register
You must register for sales tax before you make taxable sales if you have sales tax nexus in New Jersey. Nexus is about your connection to the state, not where you formed your company. Physical presence is the clearest case. An office, store, warehouse, inventory held in the state, or an employee or agent working in New Jersey generally creates nexus.
Remote sellers need a closer look. A business with no physical presence in New Jersey may still have to register if its sales into the state are high enough under the economic nexus rules. A remote seller must register if, in the current or prior calendar year, its sales delivered into New Jersey exceed $100,000 or it makes 200 or more separate transactions into the state. Confirm the current rules with the Division of Taxation before you assume you are under them.
If you are unsure, register before your first taxable sale. Selling without a registration can leave you owing tax you already collected, plus tax you should have collected from customers who had no way to know.
Step 1: Register with NJ-REG
Forming your company comes first. An LLC or corporation filing costs $100 as of July 1, 2026, and the annual report costs $75. Filing the formation documents does not register you for sales tax. That happens in a separate step.
After formation, complete tax and employer registration with the Division of Revenue and Enterprise Services using Form NJ-REG. You can start the registration through the NJ Business Portal at https://www.njportal.com/DOR/BusinessRegistration/. NJ-REG produces your New Jersey tax identification number and, if you will collect sales tax, your sales tax certificate of authority.
New Jersey issues no general statewide business license. Many new owners see the Business Registration Certificate (BRC) and assume it is a license. It is not. The BRC is proof that you completed NJ-REG tax registration. It is also separately required for certain contractors, so check whether your trade needs one. Some occupations need a professional or industry license from the Division of Consumer Affairs or another agency, and municipalities issue their own local permits. Counties license nothing.
Step 2: The Certificate of Authority
Once NJ-REG processes your sales tax registration, the state issues a Certificate of Authority. This is the document that lets you collect sales tax legally. Searches for the NJ certificate of authority, the New Jersey certificate of authority and the NJ sales tax certificate of authority all point to the same document.
Display the certificate at each location where you sell taxable items. A certificate filed for your head office does not cover a second store, and an online-only seller should keep a copy available for inspection. If you operate several locations, confirm with the Division how certificates are issued for each one, and make sure every point of sale shows a valid certificate.
Filing your sales tax return: the ST-50 and ST-51
Every registered seller files the quarterly ST-50 return, even with no sales. A quiet quarter still needs a filed return. Returns are due on the 20th of the month after the period ends.
| Quarter | Months covered | ST-50 due date |
|---|---|---|
| First | January to March | April 20 |
| Second | April to June | July 20 |
| Third | July to September | October 20 |
| Fourth | October to December | January 20 |
Some sellers must also file monthly. If you collected more than $30,000 in the prior calendar year, you remit monthly on the ST-51 for the first two months of each quarter, but only when that month's tax exceeds $500. Those months are January, February, April, May, July, August, October and November. Each ST-51 is due on the 20th of the following month. Your quarterly ST-50 still applies.
A new business has no prior-year sales, so the ST-51 test will not apply in the first year. Check your collections after each quarter, and recheck the $30,000 test when the calendar year turns. The most common filing failure is a seller who grew past the threshold and kept filing quarterly only.
Sales tax on services
New Jersey does not tax every service. Sales tax applies only to the services on the state's specific taxable list, so you cannot decide a service is exempt simply because it feels professional, and you cannot assume a service is taxable because a neighboring business charges tax on it. Read the current list on the Division of Taxation's site before you price a service, and keep a note of which list items apply to your offerings. If your business mixes taxable goods with taxable and nontaxable services, separate those sales on your records so the return is accurate.
Use tax on out-of-state purchases
Sales tax is charged at the point of sale. Use tax covers the gap. If you buy a taxable item from an out-of-state vendor that did not charge New Jersey sales tax, and you use that item in New Jersey, you owe use tax on it. Common examples include equipment, software or supplies bought online from a vendor that does not collect New Jersey tax.
Use tax is reported and paid on your sales tax return. It is generally charged at the same 6.625% rate, but confirm the rate and the return line with the Division before you file. Keep purchase invoices showing the vendor and the amount, because they are the basis for the calculation.
Marketplace facilitators
A marketplace facilitator is a platform that lets third parties sell through it, such as a large online marketplace. Under New Jersey's marketplace rules, the facilitator generally collects and remits sales tax on the sales it processes for you. Sales made entirely through a marketplace usually do not require you to collect tax yourself on those orders. Your direct sales, including sales through your own website or in person, still do.
Keep the marketplace sales reports for each period so you can reconcile them against your return. Confirm the specific marketplace rules with the Division of Taxation, because the treatment depends on how each platform handles the transaction.
Resale and exempt purchases
Goods you buy to resell are not taxed when you buy them, provided you give your supplier a valid resale certificate. The ST-3 resale certificate and exempt use certificates are covered in our resale page, including when each one applies and how long you must keep them. Never give a resale certificate for items you will use yourself.
Sales tax holiday
Do not plan pricing or promotions around a sales tax holiday or other exemption period unless the Division of Taxation has announced it for those exact dates and products.
Common mistakes new sellers make
- Making taxable sales before NJ-REG registration is complete.
- Skipping the ST-50 because the quarter had no sales. The return is still required.
- Missing the monthly ST-51 after collections passed $30,000 in the prior calendar year.
- Adding a county or city sales tax surcharge that New Jersey does not impose.
- Treating the Business Registration Certificate as a general business license.
- Displaying the Certificate of Authority at only one of several locations.
- Forgetting use tax on taxable items bought from out-of-state vendors that did not charge New Jersey tax.
- Charging tax on services that are not on the taxable list, or skipping tax on those that are.
Official resources
- New Jersey Division of Taxation: https://www.nj.gov/treasury/taxation/
- Sales tax registration through the NJ Business Portal: https://www.njportal.com/DOR/BusinessRegistration/
- Division of Revenue and Enterprise Services (DORES): https://www.nj.gov/treasury/revenue/
- Business formation filings: https://www.njportal.com/DOR/BusinessFormation/
- New Jersey Small Business Development Centers (free advising): https://njsbdc.com/
Next steps
Register through NJ-REG before your first taxable sale, display your Certificate of Authority at every location, calendar the 20th of each month after the quarter ends, and check your prior-year collections for the ST-51 test. If your sales cross state lines, involve a CPA early. Sales tax errors are cheapest to fix when they are caught on the next return, not three years later.
This guide is informational content, not legal or tax advice. Confirm every rate, deadline and rule above with the New Jersey Division of Taxation, and consult a qualified CPA or attorney for your specific situation.