NJ’s sales tax primarily applies to tangible property, but certain services are also taxable.
Generally Taxable Services
Maintenance and repair of tangible property, storage, utility services, investigation/security, information services, and limousine services.
Generally Exempt Services
Accounting, legal, consulting, medical, personal care, cleaning, and landscaping.
The Gray Areas
When a service includes a tangible deliverable (printed materials, physical products), you may need to charge tax on the tangible portion. Digital products have their own rules — NJ taxes specified digital products but generally not SaaS.
What to Do
If unsure, consult with a CPA. The cost is far less than penalties from years of non-compliance.
Disclaimer: The information provided is for general educational purposes only and does not constitute tax, legal, or investment advice. This content is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Tax outcomes depend on your specific facts and circumstances. Viewing this material does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.
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