When Is Sales Tax Due in NJ? Key Dates and Deadlines

Sales tax is a consumption tax applied to the sale of certain goods and services, playing a significant role in state revenue. In New Jersey, businesses collecting this tax act as agents for the state, responsible for its accurate collection and timely remittance. The statewide sales tax rate in New Jersey is 6.625%. Understanding sales tax obligations, especially due dates, is fundamental for compliance.

Determining Your Filing Frequency

The frequency with which a business must file and remit sales tax in New Jersey is determined by the total amount of sales tax it collects. The New Jersey Division of Taxation (NJDOT) assigns a filing frequency, typically monthly, quarterly, or annually, based on a business’s sales tax liability.

Upon initial registration, businesses are often assigned a quarterly filing frequency. This can change based on the volume of sales tax collected over time. Businesses that collect less than $500 in sales tax annually may qualify for annual filing.

Those collecting between $500 and $30,000 in sales tax annually are generally required to file quarterly. A business must file monthly if it collected more than $30,000 in sales and use tax during the prior calendar year and if it collected more than $500 in either the first or second month of the current calendar quarter. The NJDOT will notify businesses of their assigned filing frequency and any subsequent changes.

Key Sales Tax Due Dates

Once a business’s sales tax filing frequency is established, adhering to the specific due dates is imperative for compliance. In New Jersey, sales tax returns are generally due on the 20th day of the month following the close of the reporting period. If a due date happens to fall on a weekend or a state holiday, the deadline is automatically extended to the next business day.

For businesses assigned a monthly filing schedule, sales tax returns and payments are due by the 20th of the month following the month in which the sales occurred. For instance, sales tax collected in January would be due by February 20th.

Quarterly filers have four specific due dates throughout the year. The return for the first quarter (January through March) is due by April 20th. The second quarter (April through June) is due by July 20th, the third quarter (July through September) by October 20th, and the fourth quarter (October through December) is due by January 20th of the following year. Annual filers have a single deadline: their return for the entire preceding calendar year is due by January 20th of the following year.

Methods for Filing and Payment

New Jersey businesses are primarily required to file sales tax returns and make payments electronically. The New Jersey Tax Portal (taxportal.nj.gov) serves as the main online platform for these transactions. Businesses can access the portal to select their reporting period, input sales data, and complete the return submission process.

The New Jersey Division of Taxation offers several electronic payment methods. Businesses can choose to pay via Automated Clearing House (ACH) debit, where the state initiates a withdrawal from the business’s bank account, with processing costs covered by the state. Alternatively, businesses can use ACH credit, instructing their own bank to transfer funds to the state’s account, though this method may incur fees from the business’s bank and requires specific formatting. Electronic checks (e-checks) and credit card payments are also available options, with credit card payments often subject to a convenience fee charged by a third-party processor.

Certain taxpayers are mandated to use Electronic Funds Transfer (EFT) for all tax payments if their prior-year liability for any tax exceeded $10,000. While payments are generally considered timely if accepted by 11:59 PM on the due date, it is advisable to initiate ACH debit payments by 5:30 PM EST/EDT on the day before the due date to ensure timely processing. After successful submission and payment, businesses typically receive a confirmation, which should be retained for records.

Consequences of Late Filing or Payment

Failing to file sales tax returns or remit payments by the established due dates can result in penalties and interest charges from the New Jersey Division of Taxation. A late filing penalty of 5% of the tax due is assessed for each month, or fraction thereof, that the return is late, up to a maximum of 25% of the tax liability. Additionally, a separate penalty of $100 may be imposed for each month the return is delinquent.

Beyond these penalties, a late payment penalty of 5% of the balance of the taxes due is also applied if the payment is not made on time. Interest accrues on any unpaid tax balance from the original due date until the payment is received in full. This annual interest rate is calculated at 3% above the prime interest rate, compounded annually.

In more severe cases of non-compliance, the NJDOT may take further collection actions. This can include adding a Referral Cost Recovery Fee to the tax liability if the bill is sent to a collection agency, which was 11% effective January 1, 2022. If a certificate of debt is issued, additional fees for the cost of collection may also be imposed. Even if a business cannot pay the full amount of tax due, filing the return on time is still important, as it helps avoid the late filing penalty and the $100 monthly penalty, though interest and late payment penalties on the unpaid balance will still apply.