Sales tax on labor in New Jersey: taxed on repairs to things and building repairs, not on new construction; installation depends on the job

Repairing a thing in New Jersey

Taxed. Fixing a thing (washer and TV): charge sales tax on both labor and parts.

• “a television repair person must collect Sales Tax from the customer on the charges for both labor and the parts used for the repair.” — S&U-3 (repairs to tangible personal property), page date: Rev. 5/25

Repairing a home or building in New Jersey

Taxed. Repairs and maintenance to the building or land (repainting and snow shoveling) are taxable on the labor.

• “Whether or not Sales Tax is charged on the customer's bill depends on whether the work is an exempt capital improvement or a taxable capital improvement, repair, maintenance, or installation service.” — Tax Topic Bulletin S&U-3: Contractors and New Jersey Taxes (NJ Division of Taxation), page date: Rev. 5/25

Installation work in New Jersey

It depends. Installing something that becomes a permanent part of the building and adds value (new water heater) is an exempt capital improvement when the owner gives you Form ST-8. Installing carpet/flooring, alarm/security systems and signs is always taxable. What it turns on: whether it is a capital improvement documented with the owner's Form ST-8, versus a repair or one of the always-taxable installations (flooring, security systems, signs).

• “Whether or not Sales Tax is charged on the customer's bill depends on whether the work is an exempt capital improvement or a taxable capital improvement, repair, maintenance, or installation service.” — Tax Topic Bulletin S&U-3: Contractors and New Jersey Taxes (NJ Division of Taxation), page date: Rev. 5/25
• “Capital improvements are exempt from tax with the exception of those listed under Taxable capital improvements. ... All new construction* ... New hot water heater” — S&U-3 (capital improvements), page date: Rev. 5/25
• “A Form ST-8 is issued to a contractor by the property owner when the contractor's work results in an exempt capital improvement. The certificate serves as a basis for the exemption from Sales Tax on the labor portion of the contractor's bill.” — S&U-3 (Form ST-8), page date: Rev. 5/25

New construction in New Jersey

Not taxed. New construction is an exempt capital improvement (owner issues Form ST-8); the contractor pays sales tax when buying materials. Exception: landscaping services are taxable services regardless of whether they result in a capital improvement.

• “Whether or not Sales Tax is charged on the customer's bill depends on whether the work is an exempt capital improvement or a taxable capital improvement, repair, maintenance, or installation service.” — Tax Topic Bulletin S&U-3: Contractors and New Jersey Taxes (NJ Division of Taxation), page date: Rev. 5/25
• “Capital improvements are exempt from tax with the exception of those listed under Taxable capital improvements. ... All new construction* ... New hot water heater” — S&U-3 (capital improvements), page date: Rev. 5/25
• “A Form ST-8 is issued to a contractor by the property owner when the contractor's work results in an exempt capital improvement. The certificate serves as a basis for the exemption from Sales Tax on the labor portion of the contractor's bill.” — S&U-3 (Form ST-8), page date: Rev. 5/25

Listing labor separately on the bill in New Jersey

Not checked here. No quote shown here rules on listing labor separately in New Jersey.

• “Whether or not Sales Tax is charged on the customer's bill depends on whether the work is an exempt capital improvement or a taxable capital improvement, repair, maintenance, or installation service.” — Tax Topic Bulletin S&U-3: Contractors and New Jersey Taxes (NJ Division of Taxation), page date: Rev. 5/25

Materials on jobs in New Jersey

Contractor working on real property is the consumer of materials and pays sales tax when buying them.

• “Whether or not Sales Tax is charged on the customer's bill depends on whether the work is an exempt capital improvement or a taxable capital improvement, repair, maintenance, or installation service.” — Tax Topic Bulletin S&U-3: Contractors and New Jersey Taxes (NJ Division of Taxation), page date: Rev. 5/25

Trade services New Jersey taxes

The services New Jersey's own pages name as taxed, each in the page's words:

• Landscaping: “Charges for the following are treated as taxable services, regardless of whether they result in a capital improvement: Landscaping services”
• Lawn mowing / tree trimming / snow shoveling / power washing / repainting (maintenance): “Maintenance services preserve the existing condition of property. Examples of maintenance services include: Mowing lawns Trimming trees Repainting interior or exterior Snow shoveling Power washing exterior of house”
• Janitorial/cleaning and pest control: “Certain service providers who work on, but do not alter, real property (e.g., janitorial or cleaning services, pest control services) ... are required to charge the customers Sales Tax on the total amount of the bill”
• Carpet/flooring installation, alarm/security system installation, sign installation: “Installation of carpet and other flooring; Installation of an alarm or security system; and/or Installation of permanently affixed signs (effective October 1, 2022).”

Where New Jersey's list of services comes from

• “Whether or not Sales Tax is charged on the customer's bill depends on whether the work is an exempt capital improvement or a taxable capital improvement, repair, maintenance, or installation service.” — Tax Topic Bulletin S&U-3: Contractors and New Jersey Taxes (NJ Division of Taxation), page date: Rev. 5/25

Check with the New Jersey Division of Taxation

Before you bill: check with the New Jersey Division of Taxation. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare New Jersey with every state's answer, or with its neighbours just below.

Next door to New Jersey

• Delaware: no sales tax; a gross receipts tax on the business
• New York: home repair taxed, installation depends
• Pennsylvania: home repair not taxed, installation depends

Official sources for New Jersey

• S&U-3 (Form ST-8) — Rev. 5/25

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