Taxes / State tax rules / New Jersey
Selling on eBay, Poshmark or Etsy from New Jersey: sales tax and 1099-K rules
On a marketplace sale delivered to New Jersey, the marketplace facilitator collects New Jersey sales tax whether or not the seller is over the state's economic threshold, and the Division of Taxation says a remote seller over $100,000 or 200 New Jersey sales that sells only through marketplaces must still register but may ask for non-reporting status on Form C-6205-ST. New Jersey's withholding guide (NJ-WT) sets a $1,000 test for state copies of 1099 information returns, and its list of covered payers includes anyone required to file a federal Form 1099; the guide doesn't name Form 1099-K separately.
General information, not tax advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
New Jersey in short
- General sales tax:
- Yes, 6.625% state rate
- Marketplace facilitator law:
- Yes: N.J.S.A. 54:32B-3.6 (P.L.2018, c.132, § 2), since Nov 1, 2018
- Form 1099-K:
- State figure for copies of Forms 1099: copies of 1099 information returns when the amount paid or credited is $1,000 or more in a calendar year
Who collects the tax on a marketplace sale
The marketplace facilitator collects and remits New Jersey sales tax on sales made through its marketplace to New Jersey purchasers, even if the marketplace seller is registered with New Jersey, and regardless of whether the seller is above or below the economic threshold. Facilitator and seller may agree between themselves about collection.
If you sell only through marketplaces
A remote seller under the economic threshold is not required to register. A remote seller over $100,000 or 200 transactions that sells solely through marketplaces must register, but the Division says it may request a non-reporting basis by completing Form C-6205-ST, since the facilitator collects on all marketplace transactions.
Registration, resale certificates and what changes when you also sell direct have their own page: New Jersey: seller's permit and resale certificate rules.
The law: N.J.S.A. 54:32B-3.6 (P.L.2018, c.132, § 2), effective .
"The marketplace facilitator is required to collect and remit tax, regardless of whether the remote seller is above or below the economic threshold."
"A remote seller that is over the economic threshold, but sells solely through one or more marketplaces must register, but may request to be placed on a non-reporting basis for Sales Tax by completing Form C-6205-ST"
Sources: TB-83, Sales Through a Marketplace (issued October 25, 2018); New Jersey Sales Tax Remote Sellers Frequently Asked Questions; P.L. 2018, c.132 (A4496).
New Jersey's sales tax
New Jersey charges a 6.625% sales tax on most tangible personal property, specified digital products and certain services unless New Jersey law exempts them. The $100,000 economic threshold counts nontaxable retail sales too.
"New Jersey assesses a 6.625% Sales Tax on sales of most tangible personal property, specified digital products, and certain services unless specifically exempt under New Jersey law."
Sources: NJ Division of Taxation - Sales and Use Tax; New Jersey Sales Tax Remote Sellers Frequently Asked Questions.
Form 1099-K: New Jersey and the federal test
The NJ-WT withholding instructions (September 2025) say payers must provide New Jersey with copies of 1099 information returns when the amount paid or credited is $1,000 or more in a calendar year, and the covered payers include anyone required to file a federal Form 1099. The guide does not name Form 1099-K separately or say whether a platform with no federal 1099-K to file for a payee must create one for New Jersey.
| Test | Dollar amount | Transactions | Wording |
|---|---|---|---|
| New Jersey (copies of Forms 1099) | $1,000 | No count | copies of 1099 information returns when the amount paid or credited is $1,000 or more in a calendar year |
| Federal (IRS) | Over $20,000 | More than 200 | Over $20,000 in more than 200 transactions, through one app or marketplace in a calendar year |
"You must provide New Jersey with copies of 1099 information returns when the amount paid or credited is $1,000 or more in a calendar year"
The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.
Sources: NJ-WT, New Jersey Income Tax Withholding Instructions (September 2025).
Worked examples
Tax on a $40 marketplace sale to Newark
At 6.625%, a $40.00 taxable item carries $2.65 of New Jersey sales tax, which the marketplace collects. Shipping is left out of this figure.
Website plus marketplace pushes a seller over $100,000
A remote seller ships $60,000 of goods to New Jersey from its own website and $50,000 through marketplaces in 2026. The Division counts both, so $110,000 is over the $100,000 threshold. The marketplaces keep collecting on their $50,000; the Division's FAQ says the seller must register and collect on the website sales, with up to 30 days' grace to start.
Marketplace-only seller with 250 small orders
A remote seller makes 250 sales into New Jersey in 2026, all on marketplaces, for $6,000. That is 200 or more transactions, so it is over the economic threshold. The FAQ says it must register but may ask for non-reporting status on Form C-6205-ST, because the facilitators collect on every one of those sales.
A New Jersey 1099-K copy well under the federal test
A New Jersey seller grossed $1,500 on one platform in 2025 across 60 sales. The federal test requires a 1099-K only over $20,000 in more than 200 transactions. NJ-WT's $1,000 figure for state copies is met, but the guide doesn't say whether a platform with no federal 1099-K to file must create one for New Jersey, so compare any form that arrives with the platform's sales report.
Edge cases and details
- A remote seller does not collect tax on the transaction that first puts it over the economic threshold, and the Division allows up to 30 calendar days after that to register and start collecting.
- Once the threshold is met in a year, the collection duty runs for the rest of that year and all of the next, according to the remote seller FAQ.
- Remote sellers that make only nontaxable retail sales, or only sales for resale, are not required to register with New Jersey, the Division says.
- Under TB-83, when the Division audits a marketplace facilitator it may not audit the marketplace seller for the same sales unless the facilitator seeks relief for incorrect information the seller gave it; in that case the seller is liable for the tax.
- TB-83 tells marketplace sellers to get regular reports of their New Jersey marketplace sales from the facilitator, because the seller must give that information to the Division in an audit.
What to do
- Add up New Jersey-delivered sales from every channel, taxable and nontaxable, for the current and prior calendar year, and count the transactions.
- If you are over the threshold and sell only on marketplaces, read the Division's FAQ on registering and on Form C-6205-ST, and check with a tax professional.
- Download each marketplace's New Jersey sales report regularly, as TB-83 suggests, and keep it with your records.
Common questions
Do I need to register in New Jersey if I only sell on marketplaces?
The Division ties registration to the economic threshold of $100,000 or 200 New Jersey transactions in the current or prior calendar year. Over it, the Division says a marketplace-only seller must register but may request non-reporting status on Form C-6205-ST. Under it, registration is not required.
Does the marketplace collect New Jersey tax even if I'm a small seller?
Yes. The Division's FAQ says the facilitator collects and remits on all marketplace transactions regardless of whether the seller is above or below the economic threshold.
When did New Jersey's marketplace facilitator law take effect?
November 1, 2018, under P.L.2018, c.132, approved October 4, 2018.
Does New Jersey require a 1099-K at a lower amount?
New Jersey's NJ-WT guide asks payers, including anyone required to file a federal Form 1099, to send New Jersey copies of 1099 information returns when the amount is $1,000 or more in a calendar year. The guide does not name Form 1099-K separately, so ask the Division of Taxation how it applies to a 1099-K.
Related
- Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules
- New Jersey: seller's permit and resale certificate rules
- New Hampshire: sales tax and 1099-K rules
- New Mexico: sales tax and 1099-K rules
- Form 1099-K for resellers: the federal test
- Do eBay's fees apply to the sales tax a buyer pays?
- Where each selling app keeps its sales report
General information, not tax advice
This page summarizes New Jersey's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department.
Sources
Official pages this page is built from, with the day each was read.
- New Jersey Division of Taxation: TB-83, Sales Through a Marketplace (issued October 25, 2018), dated ; read . November 1, 2018 start, facilitator duties, audit rule, seller records.
- New Jersey Division of Taxation: New Jersey Sales Tax Remote Sellers Frequently Asked Questions, dated ; read . Economic threshold, marketplace-only registration and Form C-6205-ST, grace period.
- New Jersey Legislature: P.L. 2018, c.132 (A4496), dated ; read . C.54:32B-3.6 text and November 1, 2018 effective date.
- New Jersey Division of Taxation: NJ Division of Taxation - Sales and Use Tax, dated ; read . 6.625% rate.
- New Jersey Division of Taxation: NJ-WT, New Jersey Income Tax Withholding Instructions (September 2025); read . $1,000 rule for state copies of 1099 information returns.
- IRS: Understanding your Form 1099-K, reviewed . The federal 1099-K test.
- IRS: Instructions for Form 1099-K, reviewed . Both parts of the federal test counted for the calendar year.
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