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If you’re selling goods and services to customers in New Jersey, then you might be liable for New Jersey’s sales tax. We’ve compiled 10+ years of experience in tax compliance to create this comprehensive guide, which covers how to file sales tax returns online and stay compliant with the state's regulations.
We’ve scoured the New Jersey Division of Taxation website to provide you with all the necessary information about sales tax filing for businesses in one convenient place.
How to file sales tax returns in New Jersey
Sales and taxes should be reported and filed using US dollars. If you’ve made any transactions in New Jersey in a different currency, be sure to convert those to USD using official currency exchange rates.
When to file and pay NJ sales tax
The timing for filing your return depends on the size or sales volume of your business, and the New Jersey Division of Taxation will assign you a filing frequency (monthly, quarterly, or annually) after you register for a New Jersey sales tax permit. State governments generally ask larger businesses to file more frequently.
New Jersey does require monthly payments from businesses meeting certain criteria (over $30,000 collected annually and over $500 in the first/second month of a quarter).
NJ sales tax filing deadlines
| Filer Type | Reporting Period | Due Date |
|---|---|---|
| Monthly Filers | Monthly | 20th of the following month |
| Quarterly Filers | 1st Quarter (Ending March 31) | April 20 |
| 2nd Quarter (Ending June 30) | July 20 | |
| 3rd Quarter (Ending September 30) | October 20 | |
| 4th Quarter (Ending December 31) | January 20 |
A business may also be required to make monthly payments if they meet the following criteria:
- Collected more than $30,000 in Sales and Use Tax in New Jersey during the prior calendar year; and
- Collected more than $500 in the first and/or second month of the current calendar quarter.
Important note: Zero returns
There's no provision for a “zero” monthly filing in New Jersey. If you collected $30,000 or less in New Jersey sales and use tax during the preceding calendar year, a monthly remittance statement isn't required regardless of the amount of tax due for that particular month.
How to prepare your New Jersey sales tax return
Before you start working on your sales tax return, you'll need to collect all the sales information for your tax period. The New Jersey Division of Taxation online tax return system will guide you, but generally, you'll need the following details:
Sales transactions
Every business needs to know how much it sold—both in gross sales and in taxable sales—and to whom the business sold it. You are also required to collect and pay sales tax for any personal property sold to residents of New Jersey, with certain exceptions (e.g., if the buyer has a resale certificate or the item isn't considered taxable).
In addition to your gross New Jersey sales (total sales revenue from buyers in New Jersey, regardless of taxability), filing a sales tax return requires the following information:
- Total sales in the state.
- The amount of sales tax collected.
- The location of each sale.
How to complete and file a New Jersey sales tax return
The final step is to file and remit tax. The New Jersey Division of Taxation has an online filing system where you can enter your information to generate the return. You may file directly with the New Jersey Division of Taxation by visiting their site and entering your transaction data manually. This is a free service, but preparing New Jersey sales tax returns can be time-consuming — especially for larger sellers.
Online filing is required in New Jersey. You can file the return online using your Premier Business Services account. Log in here.
Once the return is successfully filed, you’ll receive a confirmation number on the next screen.
How to pay
Tax payments must be in US dollars and can be made directly at the time of filing. Once you’ve completed the return, you’ll remit the total calculated sales taxes.
Payment options include:
- Electronic check (e-check)
- Electronic funds transfer (EFT)
- Credit card (additional fees apply)
Late filing penalties and interest
If you miss a sales tax filing deadline, file your return as soon as possible. Failure to file returns and remit collected tax on time may result in penalties and interest charges, and the longer you wait to file, the greater the penalty and the greater the interest.
The New Jersey Division of Taxation does not currently offer a timely filing discount for sales tax filers.
A return filed late is fined as follows:
- 5 percent of the tax due for each month or part of a month the return is late (multiple by 0.05)
- A penalty of $100 for each month the return is late may also be charged above and beyond the percentage penalty
- A penalty of 5 percent of the tax due may also be charged for late payments
The maximum penalty for late filing is 25% of the late taxes.
Interest is calculated at the annual rate of 3% above the prime rate for every month or part of a month the tax remains unpaid, compounded annually. If outstanding taxes, penalties, and interest remain unpaid at the end of the calendar year, the outstanding balance becomes part of the balance on which interest is charged.
Note: You may be subject to fines and a jail sentence if you fail to make, render, sign, certify, or file any return or report. You may be subject to fines and a jail sentence if you willfully fail to deposit taxes in a financial institution as required or fail to remit the state and local taxes collected.
If you miss a New Jersey sales tax filing deadline due to unavoidable circumstances like weather or an accident, you might be eligible for an extension from the New Jersey Division of Taxation. Be prepared to provide evidence to support your request. Furthermore, if you are considering buying a business, it's crucial to contact the New Jersey Division of Taxation beforehand to check its sales and use tax standing. You will be responsible for any existing tax debts after the purchase is complete.
Getting third-party help with NJ sales tax filing
While you can file directly with the New Jersey Division of Taxation, manual filing can be time-consuming, especially for larger sellers. Outsourcing to experts like accountants, bookkeepers, or sales tax automation companies is common. They understand New Jersey sales tax law and can help you navigate its complexities.
Quaderno offers a service to simplify your sales tax compliance. Besides generating detailed tax reports with all necessary data, Quaderno can handle the filing process for you. By connecting to your sales data, Quaderno manages the submission of your sales tax returns to the NJ authorities, ensuring timely and accurate filing. This saves time and provides peace of mind.
For further reading that will help you stay compliant and successful as a remote seller, check out our Business Guide to Sales Tax in New Jersey.
Sales tax filing in other states
Note: At Quaderno we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or the tax authorities.
