Sales tax deduction in New Jersey
Varies
Is Sales Tax Deductible in New Jersey?
Short answer: Only instead of income tax: itemizers in New Jersey pick sales tax (6.625% state rate, about 6.6% with local taxes) or state income tax, whichever is bigger. Most clothing, footwear, and grocery food is exempt; there are no general local sales taxes, and the average combined rate is slightly below 6.625% because of half-rate Urban Enterprise Zones.
Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Sales tax deduction in New Jersey
Varies
Individuals / Personal Taxes
Only instead of income tax: itemizers in New Jersey pick sales tax (6.625% state rate, about 6.6% with local taxes) or state income tax, whichever is bigger. Most clothing, footwear, and grocery food is exempt; there are no general local sales taxes, and the average combined rate is slightly below 6.625% because of half-rate Urban Enterprise Zones.
Business justification
Only instead of income tax: itemizers in New Jersey pick sales tax (6.625% state rate, about 6.6% with local taxes) or state income tax, whichever is bigger. Most clothing, footwear, and grocery food is exempt; there are no general local sales taxes, and the average combined rate is slightly below 6.625% because of half-rate Urban Enterprise Zones. Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Category
- Personal Tax Deductions