Article: 50489

Overview 

If you made online or out-of-state purchases during the year and did not pay New Jersey sales tax, you may owe use tax. This tax is owed on purchases of taxable goods or services that are used, stored, or consumed in New Jersey when sales tax was not collected at the time of sale. 

To report this, you must complete the Use Tax section of your New Jersey return. 

What Is Use Tax and When Do You Owe It? 

You owe use tax if: 

• You bought items online, by mail order, or while traveling out of state, and 

• You were not charged New Jersey sales tax at the time of purchase, and 

• The items are taxable in New Jersey. 

Note: Use tax ensures that out-of-state purchases are taxed alongside in-state purchases. 

How to Report 

1. Navigate to the State Taxes section on the left-hand side of the screen. 

2. Click the link: I’d like to see the forms I’ve filled out or search for a form.

3. In the dropdown menu, select New Jersey. 

4. Click on the General tab. 

5. Select Use Tax to open the screen. 

6. Enter all applicable information.  

7. Click Save once complete. 

Additional Resources 

For further guidance, see: 2024 New Jersey Form NJ-1040 Instructions (PDF)