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Are software downloads taxable in New Jersey? Yes. You owe tax for the sale of software downloads to customers in New Jersey.
The Use Tax rate is the same as the Sales Tax rate, which is 6.625%. 6.625% Use Tax to New Jersey. company based in another state.
NJ Taxation As a seller, you have the option of calculating Sales Tax due using either the tax bracket (See Sales Tax Collection Schedule, Form ST-75) or by multiplying the taxable receipts by the applicable tax rate. If you are not using the tax bracket, you must: Calculate the tax to the third decimal point.
Make a note of the purchase amount (add shipping cost, if applicable). Get the applicable sales tax rate; in the present case, the New Jersey state sales tax is 6.625%. Check if special sales tax applies in your case. Multiply the purchase amount by the sum of applicable rates.
The State of New Jersey has a flat sales tax rate of 6.625% with no local or municipal taxes.