Whenever you purchase taxable items or services for use in New Jersey and the seller does not collect the appropriate sales tax, you are required to pay use tax to New Jersey. For example, if you purchase taxable merchandise from a mail order house and they don't charge New Jersey sales tax, it does not mean that tax is not due; it means that the mail order house is not authorized to collect New Jersey sales tax. You, the purchaser, must pay 7% use tax directly to the Division of Taxation.
If you make a purchase in another state which has a lower sales tax rate than New Jersey, use tax is due at the rate of 7%. If, however, that state has sales tax reciprocity with New Jersey, a credit is allowed for the sales tax paid to that state.
Use tax can be reported and paid on several different forms. Individual taxpayers may report and pay any use tax due when filing their New Jersey Resident Income Tax Return, Form NJ-1040
. Businesses who file sales and use tax returns with the Division report and pay use tax on Forms ST-50 and ST-51
. The Use Tax Remittance, Form ST-18
, is also available to report and pay use tax.
To order the Use Tax Remittance, Form ST-18
, or other tax forms
For more information on use tax, see our publication ANJ-7
, Use Tax in New Jersey.