New Jersey Contractor Sales Tax 2026

New Jersey sales tax for contractors 2026. Labor taxable? Materials? Real rules from state revenue department.

New Jersey sales tax rate for contractors

  • Combined rate: 6.625% (no local addition)
  • Construction labor taxable: PARTIALLY - depends on contract type
  • Tax authority: New Jersey Division of Taxation

How New Jersey treats contractor labor

Capital improvement labor (new construction, additions, substantial improvements) exempt. Repair, maintenance, certain installation TAXABLE.

New Jersey-specific rules

Complex capital improvement vs. repair distinction. ST-8 form for capital improvement exemption. Floor covering installation and repair labor taxable.

New Jersey mechanics lien rights

Beyond sales tax, New Jersey contractor billing must respect the mechanics lien deadline of 90 days from last work. Preliminary notice: Notice of Unpaid Balance and Right to File Lien required for residential.

New Jersey contractor licensing

New Jersey Division of Consumer Affairs (Home Improvement Contractor Registration) - required for licensed work. $110 (HIC registration) + $1MM liability insurance. Board: https://www.njconsumeraffairs.gov.

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New Jersey contractor resources by trade