New Jersey Sales Tax Guide for SaaS and E‑Commerce Businesses

2025‑07‑28

New Jersey imposes a 6.625% statewide sales tax with no additional local taxes (except Urban Enterprise Zones). Here's what SaaS and e-commerce businesses need to know about New Jersey sales tax obligations, registration requirements, and compliance.

Quick Reference

Item	Details
State Tax Rate	6.625%
Local Tax Range	0% (except Urban Enterprise Zones)
Combined Rate Range	6.625%
Economic Nexus	$100,000 OR 200+ transactions in current or previous calendar year
Physical Nexus	Any presence in New Jersey
SaaS Taxable	No (exempt as service)
Registration Portal	New Jersey Business Registration

Nexus: When New Jersey Rules Apply

Economic Nexus

Starting November 1, 2018, remote sellers and marketplace facilitators must collect New Jersey sales tax if, in the current or prior calendar year, they meet either of these thresholds:

$100,000 or more in gross revenue from sales of tangible personal property, specified digital products, or taxable services delivered into New Jersey; or
200 or more separate transactions of those items delivered into New Jersey

You must register and collect tax during the threshold year and the following calendar year. A 30-day grace period applies: you do not collect tax on the transaction that pushes you over the threshold. Instead, you must register and begin collecting after that period.

Physical Nexus

You establish physical nexus if you have any presence in New Jersey: a warehouse, office, inventory stored in-state, employees, contractors, or agents representing your business there.

Registration and Compliance

Sales Tax Certificate

Register for a New Jersey Sales and Use Tax Certificate via the NJ Division of Revenue & Enterprise Services or the Streamlined Sales Tax system if you're eligible.

Filing Frequency & Tax Rates

New Jersey charges a 6.625% statewide sales tax rate with no additional local taxes (except Urban Enterprise Zones).

File monthly if your tax liability is significant
Otherwise you may file quarterly or annually

Returns are due by the 20th day of the month following the reporting period.

Taxability of Goods and Services

Tangible Personal Property

Physical goods shipped into New Jersey are taxable, except for exemptions such as clothing, groceries, or medical devices.

Digital Goods and SaaS

Digital goods like music, ebooks, movies, and software codes delivered electronically are taxable as specified digital products.

Software-as-a-Service, Platform-as-a-Service, and Infrastructure-as-a-Service are typically not taxable in New Jersey. Technical Bulletin TB-72 clarifies that because the software is hosted remotely and not delivered to the customer, it does not constitute tangible personal property subject to sales tax.

However, services classified as information services—such as legal research tools like Westlaw or LexisNexis—are taxable regardless of delivery method.

E‑Commerce Businesses: Tangible vs. Digital Products

Tangible Goods

Physical goods shipped into New Jersey are taxable if nexus is met. Marketplace sales count toward nexus even if the facilitator collects the tax.

Digital Downloads

Electronically delivered digital products—ebooks, software downloads, digital codes, or media—are taxable as specified digital products under ANJ-27.

Marketplace Facilitators

Marketplace platforms with nexus must collect and remit sales tax on behalf of sellers. If your sales occur through a certified marketplace, you can request non-reporting status via Form C-6205-ST. You must still register if you exceed nexus thresholds or sell through your own channel.

Exemptions & Special Cases

Nonprofit organizations and government purchasers may be exempt; keep valid exemption certificates on file
Resale certificates apply when reselling taxable goods or services; maintain proper documentation
Bundled services must clearly separate taxable digital products from non-taxable SaaS
Information services must be evaluated against the state's criteria for taxability

Glossary of Key Terms

Term	Definition
Economic Nexus	Triggered by $100K in sales or 200 transactions into New Jersey
Physical Nexus	Triggered by in-state presence: inventory, agents, or employees
Specified Digital Products	Digitally delivered goods subject to tax: music, ebooks, software downloads
SaaS / PaaS / IaaS	Cloud-based services generally not taxable in New Jersey
Information Service	Service providing compiled data access (e.g., legal research tools) that is taxable
Marketplace Facilitator	Platform that collects and remits sales tax for third-party sellers
Non-Reporting Status	Option to avoid filing if all sales are processed by certified marketplace facilitator