If you were a New Jersey resident and you purchased items or services that were subject to New Jersey sales tax, you are liable for use tax at the rate of 7% of the purchase price if sales tax has not been paid. If sales tax has been collected out of state, use tax is only due if the tax was paid at a rate less than 7%, based on the difference.
For example:
- You purchased a computer for $1,550 plus $50 for shipping from a seller located outside of New Jersey and no sales tax was collected. Your use tax liability to New Jersey on this item is $112 ($1,600 x .07 = $112).
- On a trip to Maine you purchased an antique desk for $4,000 and paid Maine sales tax at the rate of 5%. The difference, $80 (2% of the purchase price), is due to New Jersey as use tax.
Individual taxpayers report and remit use tax by either completing and filing the Use Tax Return (Form ST-18) within 20 days after property is brought into New Jersey, or by reporting any use tax due on their yearly state return. The entry appears on Line 45 of NJ-1040.
If you owe use tax and are remitting it with Form NJ-1040, compute the amount of use tax due as follows:
PART 1 - Items or services costing less than $1,000 each. If you know the amount of your purchases in this category, calculate the exact amount of use tax due by multiplying the amount of your purchases by 7%. OR, if you have incomplete or inaccurate receipts for your purchase, you may use the Estimated Use Tax Chart to estimate the amount of use tax due.
ESTIMATEAD USE TAX CHART (for Part 1 computation only)
If your NJ gross income is: | Use Tax: |
Up to $15,000 | $14 |
$15,001 - $30,000 | $44 |
$30,001-$50,000 | $64 |
$50,001-$75,000 | $84 |
$75,001-$100,000 | $106 |
$100,001-$150,000 | $134 |
$150,001-$200,000 | $170 |
$200,001 and over | .0852% (.000852) of income, or $494, whichever is less |
Note: Using the Estimated Use Tax Chart to determine the amount of use tax you report on Line 45 does not preclude the Division of Taxation from auditing your account. New Jersey does have access to records maintained by out-of-State businesses, and if additional tax is due, you may receive an assessment for the amount of use tax owed, plus applicable penalties and interest.
PART 2 - Items or services costing $1,000 or more each. You must calculate the exact amount of use tax due on all purchases in this category.
PART 3 - Total Use Tax Due. Add the amounts determined in Steps 1 and 2. Enter the result into the Use Tax screen on the program.