New Jersey Resale Certificate Guide 2026: How to Get Yours

New Jersey sits at the center of the Northeast corridor, with over 9 million residents and a dense concentration of retail, wholesale, and e-commerce businesses. The state's 6.625% sales tax rate applies to most tangible goods, making a resale certificate essential for any business buying inventory in the Garden State. This guide covers everything about New Jersey's Form ST-3, the Resale Certificate, including who qualifies, how to apply, and what to watch out for in 2026.

New Jersey Sales Tax Basics

State Rate

The New Jersey state sales tax rate is 6.625%. This is a flat rate with no local add-ons. Unlike many states, New Jersey does not allow cities or counties to impose additional sales taxes, which simplifies compliance considerably.

There is one exception: Urban Enterprise Zones (UEZs). Qualified businesses in designated UEZs can charge a reduced rate of 3.3125% (half the full rate) on certain in-person retail sales. This program is designed to encourage economic development in specific areas.

What Is Taxable in New Jersey?

New Jersey taxes most tangible personal property and some services:

• Most physical goods are taxable
• Clothing and footwear are exempt (similar to Pennsylvania)
• Groceries (unprepared food) are exempt
• Prescription drugs are exempt
• OTC medications are exempt
• Most professional services are not taxable
• Certain digital products (digital music, e-books, streaming) are taxable
• Prepared food (restaurants, takeout) is taxable at the full rate

The clothing exemption is a significant benefit for fashion retailers. If you buy clothing for resale, the items are already exempt for the end consumer, but you should still use a resale certificate to document the transaction properly.

What Form Do You Need?

New Jersey uses Form ST-3, the Resale Certificate, issued by the New Jersey Division of Taxation.

About Form ST-3

The ST-3 is a straightforward, single-purpose resale certificate. It is used exclusively to claim the resale exemption. Key fields include:

• Purchaser's name and address
• New Jersey tax registration number
• Type of business (retailer, wholesaler, manufacturer, etc.)
• General description of items purchased for resale
• Purchaser's signature and date

The form can be used as a blanket certificate covering all purchases of a specific type from a particular vendor, or it can be issued per transaction.

Where to Get the Form

Form ST-3 is available as a free PDF download from the New Jersey Division of Taxation website. No special request is needed.

Who Needs a New Jersey Resale Certificate?

Any business that purchases tangible personal property for the purpose of reselling it in New Jersey needs a resale certificate. This includes:

Retailers buying goods to sell in physical stores, at fairs or markets, or through online platforms.

Wholesalers and distributors purchasing from manufacturers or importers for redistribution.

Online sellers with New Jersey sales tax registration who buy inventory for resale through Amazon, Shopify, eBay, or any other channel.

Manufacturers purchasing raw materials, components, and supplies that become part of a finished product for sale.

Restaurants and food businesses buying ingredients that will be prepared and sold as meals.

Who Does NOT Qualify

• Consumers making personal purchases
• Businesses buying supplies, equipment, or furnishings for internal use
• Contractors purchasing materials for installation into real property
• Anyone without a New Jersey Certificate of Authority (sales tax registration)

How to Apply for a New Jersey Resale Certificate

Step 1: Register for a Certificate of Authority

Before using a resale certificate, you must obtain a New Jersey Certificate of Authority (Form CA-1). This is your sales tax registration with the Division of Taxation.

What you need to register:

• Federal EIN or SSN (for sole proprietors)
• Business legal name and DBA
• Business address
• Type of entity (sole proprietor, LLC, corporation, partnership)
• Description of products or services you will sell
• Expected start date of business
• Names and SSNs of responsible persons

Registration is free. Apply online through the New Jersey Division of Revenue and Enterprise Services.

Processing time: Typically 5 to 7 business days.

Step 2: Complete Form ST-3

Download the ST-3 and fill in your business information, including your New Jersey tax registration number. Describe the general categories of goods you will purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give the completed ST-3 to each supplier. The vendor keeps it on file and does not charge you sales tax on qualifying purchases.

Want us to handle the process? We take care of registration and certificate completion so you can focus on your business.

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Multi-State Considerations

New Jersey is a member of the Streamlined Sales Tax (SST) agreement, which has significant implications for multi-state businesses.

SST Membership

As an SST member state, New Jersey accepts the Streamlined Sales and Use Tax Agreement Certificate of Exemption (SSTGB Form F0003). Out-of-state businesses registered through the SST system can use this certificate when purchasing goods in New Jersey for resale.

MTC Certificate

New Jersey also accepts the Multistate Tax Commission (MTC) Uniform Sales and Use Tax Resale Certificate. This gives out-of-state buyers multiple options for documenting their resale exemption.

Out-of-State Sellers

New Jersey's economic nexus threshold is $100,000 in sales or 200 transactions with New Jersey customers in the current or prior calendar year. If you exceed either threshold, you must register, collect, and remit New Jersey sales tax.

Use Tax

If you purchase goods from an out-of-state vendor who does not collect New Jersey sales tax, you owe New Jersey use tax at 6.625% on those purchases, unless they are for resale.

For more on multi-state compliance, read our multi-state resale certificate guide.

Common Mistakes with New Jersey Resale Certificates

Mistake 1: Using a Resale Certificate for Personal Purchases

This is the most common violation across all states, and New Jersey is no exception. Buying personal items (electronics, home goods, gifts) using your business resale certificate is tax fraud. The Division of Taxation audits for this aggressively.

Mistake 2: Not Registering Before Issuing Certificates

Some businesses fill out the ST-3 before they have a valid Certificate of Authority. A resale certificate without a valid registration number behind it is not legitimate, and the seller can (and should) refuse it.

Mistake 3: Confusing the Clothing Exemption with the Resale Exemption

Since clothing is already exempt from New Jersey sales tax for all buyers, some resellers skip providing a resale certificate for clothing purchases. This is a mistake. The resale certificate documents the nature of the transaction and protects the seller during audits. Always provide one, even for exempt items.

Mistake 4: Not Retaining Certificates

Sellers must keep resale certificates on file for at least 4 years from the date of the last sale covered by the certificate. Losing certificates can result in tax liability for the seller.

New Jersey-Specific Rules You Should Know

Urban Enterprise Zones

New Jersey has designated several Urban Enterprise Zones (UEZs) where qualified businesses can charge customers half the normal sales tax rate (3.3125%). If your business is located in a UEZ, you need a special UEZ certificate in addition to your regular Certificate of Authority. UEZ locations include parts of Newark, Camden, Trenton, Paterson, and other cities.

Salem County Exemption

Salem County has a special partial exemption: many retail sales in Salem County are taxed at 3.3125% instead of the full 6.625%. This applies to most in-person retail purchases made within the county. Online and remote sales into Salem County are taxed at the full rate.

Prepared Food Rules

New Jersey taxes prepared food at 6.625%. This includes restaurant meals, takeout, catering, and any food sold in a heated state. If you operate a food business, understanding the line between exempt groceries and taxable prepared food is essential for proper tax collection.

Annual vs. Quarterly Filing

New Jersey assigns you a filing frequency based on your monthly tax liability. Businesses collecting less than $500 per month file quarterly. Businesses collecting $500 or more file monthly. Very small businesses (under $30,000 in annual taxable sales) can apply for annual filing.

Penalties for Misuse

New Jersey imposes penalties of 5% per month (up to 25%) on unpaid taxes from misused resale certificates, plus interest. Willful fraud can result in criminal penalties.

How Much Can You Save?

At New Jersey's flat 6.625% rate, the math is clean and predictable.

Calculate your exact savings with our savings calculator.

New Jersey Resale Certificate FAQs

Q: Does the New Jersey ST-3 expire? A: No. New Jersey resale certificates do not have an expiration date. They remain valid as long as the purchaser's Certificate of Authority is active and the information on the form is accurate.

Q: Can I use the ST-3 in other states? A: No. The ST-3 is specific to New Jersey. For other states, use their state-specific form, the SST certificate (if the state is an SST member), or the MTC Uniform Certificate (if accepted).

Q: Do I need a resale certificate for clothing purchases? A: While clothing is exempt from NJ sales tax for all buyers, using a resale certificate for clothing inventory purchases properly documents the transaction as a wholesale/resale purchase. Always provide one.

Q: What is the difference between the Certificate of Authority and the resale certificate? A: The Certificate of Authority (Form CA-1) is your registration to collect and remit sales tax. The resale certificate (Form ST-3) is the document you give to suppliers to buy inventory tax-free. You need the Certificate of Authority first before you can issue valid ST-3 forms.

Get Started with Your New Jersey Resale Certificate

New Jersey's flat rate and SST membership make the process straightforward. Get registered, complete your ST-3 forms, and start saving on every inventory purchase.

• Fast registration processing
• Expert guidance on NJ-specific rules
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on New Jersey's requirements, visit our New Jersey state page.

A New Jersey resale certificate saves you 6.625% on every qualifying inventory purchase. With no local taxes to complicate the math, the savings are consistent and significant across the state.

Related Articles

• What Is a Resale Certificate? - Start here if you are new to resale certificates and want to understand the basics.
• Multi-State Resale Certificates - New Jersey accepts both SST and MTC certificates. Learn how these work.
• Common Resale Certificate Mistakes That Trigger Audits - Avoid the errors that lead to audit assessments.