New Jersey Sales Tax

The history of New Jersey’s sales tax is shown below.  A more detailed historical discussion is found in a 2006 report from the NJ Policy Perspective which indicated sales tax was responsible for 29% of all revenue in 2005.  Over half of the revenue from the Sales Tax goes towards funding the “Abbott” school districts.  See the NJ Sales Tax Guide for current information.

Sales Tax Rates in NJ

2%  -  July 1, 1935 to June 13, 1938 - Hoffman (R)
3%  -  July 1, 1966 - Hughes (D)
5%  -  March 1, 1970 - Cahill (R)
6%  -  January 3, 1983 - Kean (R)
7%  -  July 1 , 1990 - Florio (D)
6%  -  July 1, 1992 - Florio (D)
7%  - July 15, 2006 - Corzine (D)
On October 1, 2008 the sales tax was expanded to include:
  • Downloaded music and video
  • Shipping and handling charges
  • Flooring and carpeting installation
  • Storage space
  • Tanning, massage and tattooing
  • Data processing
  • Limousines
  • Health, shopping and other club membership fees
  • Parking garages and lots
  • Non-clothing cleaning services
  • Landscaping
  • Magazines and periodicals
  • Investigation and security services, such as security alarms and armored cars