Use tax is imposed on items that are purchased for use in New Jersey for which you did not pay sales tax or you pay less sales tax than what is imposed by New Jersey. New Jersey sales and use tax is currently 6.625%. Generally, online purchases made from out of state sources are the most common reason for applying Use Tax.
No Sales Tax Paid
If no sales tax was paid on an item or service, you would need to calculate the tax using the 6.625% rate for New Jersey. Include the cost of shipping in the tax calculations.
Sales Tax Paid less than 6.625%
If you purchased an item out of state and you paid sales tax less than the 6.625% rate in New Jersey, you must calculate the difference in sales tax and report the difference on your return.
If sales tax in the other state is more than the New Jersey rate, no credit is issued for the sales tax paid.
To locate the Use Tax screen within the program, follow the steps below:
- State Section