Understanding New Jersey Sales Tax on Food

Food items are subject to a sales tax in New Jersey, along with the majority of other goods and services. Given that the state’s sales tax is 6.625%, shoppers often pay a further 6.625% on top of the price of their products. The state does, however, have various exemptions and exclusions that may alter whether or not specific foods are taxable.

Shampoo is typically subject to the state’s sales tax, along with other personal hygiene items like soap, deodorant, and toothpaste. There are a few exceptions, though. For instance, a shampoo product may be free from sales tax if it is marketed as a therapeutic shampoo for treating a certain condition. In New Jersey, some prescription medicines and medical supplies are also free from sales tax.

Numerous exemptions and exclusions from the state’s sales tax are available in New Jersey. Exemptions are frequently granted for purchases made by non-profit organizations, specific categories of apparel and footwear, and particular categories of food and drink. For instance, “basic groceries” such as food are typically free from sales tax. This includes foods like fresh fruits and vegetables, milk, eggs, and bread.

Depending on your filing status and other variables, you may be able to claim a certain number of exemptions on your New Jersey tax return. For instance, if you and your spouse are married and filing jointly, you may be eligible to claim two exemptions—one for each of you. Additionally, you might be able to request exemptions for dependents or other qualified people. To find out how many exemptions you can claim, make sure to speak with a tax expert or use a tax preparation software tool.

Taxpayers in New Jersey are permitted to deduct a predetermined amount from their taxable income without having to itemize their deductions. Depending on how you file, the standard deduction amount changes. For tax year 2021, married couples filing jointly are entitled to a standard deduction of $27,000, compared to $12,900 for single filers. To calculate the size of your standard deduction, make sure to speak with a tax expert or use tax preparation software.

In conclusion, the majority of foods sold in New Jersey are subject to the state’s sales tax, with some basic groceries and some pharmaceuticals being the exceptions. The majority of the time, shampoo and other personal care items are taxable, however there are some exceptions for medicinal items. The number of exemptions you are eligible for in New Jersey depends on your filing status. The state also provides a variety of exemptions and exclusions from the sales tax. The New Jersey standard deduction, which has a predetermined dollar amount, can lower your taxable income without requiring you to itemize your deductions.