New Jersey Sales Tax on Home Improvement (2026): The ST-8 and the Exceptions
When a New Jersey contractor charges 6.625% sales tax, what the ST-8 covers, the work that's taxable anyway, and three jobs worked.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in New Jersey
Repairs taxed
Capital improvements are exempt with an ST-8, except floor covering, certain landscaping, hard-wired alarms and sign installation. Repairs are taxable; you pay tax on materials.
6.625%
6.625%
Itemizing or time and materials
On taxable work, the actual cost of separately stated materials comes off the taxable amount.
ST-8
Source: NJ Division of Taxation S&U-2; S&U-3 (Bulletin, rev. Sept 2017; S&U-3 May 2025)
“Capital improvements are exempt from tax with the exception of the following”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 remodel $441.80 repair | $331.25 |
| Kitchen $40,000 job, $15,000 materials | $0 remodel $1,590.41 repair | $993.75 |
| Addition $90,000 job, $35,000 materials | $0 remodel $3,490.13 repair | $2,318.75 |
On the kitchen: A remodel is a capital improvement: the customer pays nothing and you pay $993.75 on materials. A repair job is taxed: $1,590.41 on $40,000 less the materials' cost and tax, stated separately.
How it works in New Jersey
Capital improvement
Exempt with an ST-8: a remodel, an addition, a new kitchen or bath that becomes part of the home.
Taxable anyway
Installing carpet and other flooring, certain landscaping, hard-wired alarms and permanent signs are taxable even as part of a capital improvement.
Repairs
Taxable. On a repair bill, the actual cost of materials stated separately comes off the taxable amount; on a lump sum, the whole charge is taxed.
Also check
- The ST-8 is the Certificate of Exempt Capital Improvement. Keep it with the job.
- A kitchen remodel that includes new flooring has a taxable flooring part. Price it as its own line.
- Charge 6.625% on taxable work anywhere in the state.
New Jersey sales tax questions
Do contractors charge sales tax in New Jersey?
On repairs and on floor covering, landscaping and alarm installation, yes, at 6.625%. On a capital improvement with an ST-8, no.
What is an ST-8?
The Certificate of Exempt Capital Improvement, signed by the customer for work that's a capital improvement.
Is labor taxable in New Jersey?
On repair and maintenance work, yes. On an exempt capital improvement, no.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.