New Jersey | 6.63% |
Essex County | 0.00% |
City + District Rates | 0.00% |
Combined Sales Tax Rate | 6.63% |
Businesses are required to collect sales tax in Essex if they have a sales tax nexus in New Jersey and sell to residents of Essex, whether at a physical location within the county or online.
Physical Nexus: This occurs when a business has a tangible presence in the state. Examples include having a store, warehouse, office, or employees in New Jersey. If your business operates any of these within the state, you have a physical nexus and must collect sales tax from customers in Essex. Economic Nexus: This is based on the volume of sales or the number of transactions a business conducts in the state. For instance, if your business exceeds a certain threshold of sales or transactions in New Jersey, which is often defined as a specific dollar amount or number of transactions, you establish economic nexus. This means even if you don’t have a physical presence in the state, you are still required to collect sales tax from customers in Essex.