# Sales tax on a flooring job in New Jersey > The charge to install flooring is taxable in New Jersey, even when the job is a capital improvement. Which quote lines the guidance treats as taxable. Source: https://njflooringguide.com/sales-tax --- [njflooringguide.com](https://njflooringguide.com/) [Home](https://njflooringguide.com/) · [Sales tax](https://njflooringguide.com/sales-tax) · [Permit](https://njflooringguide.com/permit) · [Asbestos](https://njflooringguide.com/asbestos) · [Lead-safe rentals](https://njflooringguide.com/lead-safe-rentals) · [Sources](https://njflooringguide.com/sources) · [About](https://njflooringguide.com/about) · [Privacy](https://njflooringguide.com/privacy) # Which line of a flooring quote is taxable in New Jersey? **Not tax advice; ask the NJ Division of Taxation about your case.** ## Short answer The charge to install flooring is taxable in New Jersey, even when the job is a capital improvement. That tax goes on the installer's invoice to whoever hired the installer, so when a dealer subcontracts the installation, ANJ-5 says the dealer's installation charge to the owner is not a taxable receipt. Floor covering bought from a dealer is taxed whether or not the dealer installs it. Division of Taxation guidance says a contractor that is not a floor covering dealer pays the tax on materials when it buys them, and that a contractor's bill giving one sum for materials and labor is taxable in full. Form ST-8 cannot be issued for flooring installation. ## What the documents say ### The installation line The Division of Taxation's bulletin for floor covering dealers states the rule. > Charges for the installation of floor covering are subject to tax whether or not the installation results in a capital improvement. Source: p.1, "Installation of Floor Covering". Document: Publication ANJ-5, "Floor Covering Dealers & New Jersey Sales Tax" (Division of Taxation). Revision as printed: "Rev. 12/17". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf) P.L.2006, c.44 amended the statute in 2006. In its clause (v), on installing property that becomes a capital improvement, the law sets apart landscaping services and installing carpeting and other flooring. > (v) services rendered in installing property which, when installed, will constitute an addition or capital improvement to real property, property or land, other than landscaping services and other than installing carpeting and other flooring. Source: §2, amending C.54:32B-3, subsection (b)(2)(v). Document: P.L.2006, c.44 (session law). Revision as printed: "Approved July 8, 2006." Read 2026-11-13. [https://pub.njleg.gov/bills/2006/PL06/44_.HTM](https://pub.njleg.gov/bills/2006/PL06/44_.HTM) ### Three ways to buy Each way puts the tax on different lines. The documents describe each one separately. #### 1. You buy the floor covering and install it yourself Your bill has no installation charge. You pay tax on the floor covering and supplies you buy. The Division's bulletin for homeowners says so. > When you work on real property yourself, you are required to pay Sales Tax on the materials and supplies that you purchase. Source: p.4, "Do-It-Yourself Work". Document: Tax Topic Bulletin S&U-2, "Sales Tax and Home Improvements" (Division of Taxation). Revision as printed: "Rev. 9/17". Read 2026-11-13. [https://nj.gov/treasury/taxation/pdf/pubs/sales/su2.pdf](https://nj.gov/treasury/taxation/pdf/pubs/sales/su2.pdf) ANJ-5 says the dealer collects the tax on floor covering whether or not it also installs it. > When a dealer sells floor covering to a customer, with or without an agreement to install the floor covering, the dealer must collect Sales Tax from the customer on the sales price of the floor covering unless the customer issues a valid exemption certificate or the floor covering is delivered outside the State by the seller. Source: p.1, "Sales of Floor Covering". Document: Publication ANJ-5, "Floor Covering Dealers & New Jersey Sales Tax" (Division of Taxation). Revision as printed: "Rev. 12/17". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf) Not tax advice; ask the NJ Division of Taxation about your case. #### 2. A dealer sells the floor covering and installs it A dealer's sale and its installation are two transactions. > The sale of floor covering by a dealer and the charge for installing floor covering are always treated as two separate transactions. Source: p.13, "Floor Covering Dealers". Document: Tax Topic Bulletin S&U-3, "Contractors and New Jersey Taxes" (Division of Taxation). Revision as printed: "Rev. 5/25". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su3.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su3.pdf) The bulletin for homeowners says both lines are taxed when the dealer sells and installs. > When a dealer sells and installs floor covering, the sale of the floor covering and the sale of the installation are always treated as two separate transactions, and tax is collected on both the sales price of the floor covering and the installation charge. Source: pp.4-5, "Floor Covering". Document: Tax Topic Bulletin S&U-2, "Sales Tax and Home Improvements" (Division of Taxation). Revision as printed: "Rev. 9/17". Read 2026-11-13. [https://nj.gov/treasury/taxation/pdf/pubs/sales/su2.pdf](https://nj.gov/treasury/taxation/pdf/pubs/sales/su2.pdf) Not tax advice; ask the NJ Division of Taxation about your case. The installation tax is on the invoice of whoever does the installing, sent to whoever hired it. ANJ-5's Example 2 is the case where the dealer subcontracts the installation. A property owner buys floor covering from a dealer and contracts with the dealer to install it in an existing home. The dealer hires a subcontractor to do the installation. > Since the installation is a taxable service, the subcontractor must collect tax from the floor covering dealer. The amount charged to the property owner by the floor covering dealer for installation is not a taxable receipt; however, the dealer must collect tax from the property owner on the purchase of the floor covering. Source: p.2, Examples, item 2. Document: Publication ANJ-5, "Floor Covering Dealers & New Jersey Sales Tax" (Division of Taxation). Revision as printed: "Rev. 12/17". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf) Not tax advice; ask the NJ Division of Taxation about your case. ANJ-5's Example 3 is a builder case. A developer building a home to sell hires a general contractor. The general contractor hires a floor covering dealer as a subcontractor to install. > The floor covering dealer must collect tax from the general contractor on the installation charge. The amount charged to the developer by the general contractor is not a taxable receipt. Source: p.2, Examples, item 3. Document: Publication ANJ-5, "Floor Covering Dealers & New Jersey Sales Tax" (Division of Taxation). Revision as printed: "Rev. 12/17". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf) Not tax advice; ask the NJ Division of Taxation about your case. #### 3. A contractor that is not a floor covering dealer ANJ-5 sends this contractor to the general rules for contractors. > A contractor that is not a retail floor covering dealer, but rather purchases floor covering on a per-job basis and installs it for customers, operates under the general rules for contractors and not the rules for floor covering dealers. Source: p.1, "Introduction". Document: Publication ANJ-5, "Floor Covering Dealers & New Jersey Sales Tax" (Division of Taxation). Revision as printed: "Rev. 12/17". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf) Under those rules, the contractor pays the tax on materials when it buys them. > The contractor pays the Sales Tax on the cost of materials and supplies at the time of purchase. Source: p.9, "Collecting Sales Tax From Property Owners". Document: Tax Topic Bulletin S&U-3, "Contractors and New Jersey Taxes" (Division of Taxation). Revision as printed: "Rev. 5/25". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su3.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su3.pdf) If the bill lists materials and labor separately, only the actual cost of materials comes off the taxable amount. > If the contractor chooses to separately itemize materials and labor on the customer's bill and the bill is for a taxable capital improvement, repair, maintenance, or installation service, the only amount deductible from the receipt for Sales Tax purposes is the separately stated pass-through of the actual cost of materials. Source: p.9, "Taxable Services." Document: Tax Topic Bulletin S&U-3, "Contractors and New Jersey Taxes" (Division of Taxation). Revision as printed: "Rev. 5/25". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su3.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su3.pdf) Not tax advice; ask the NJ Division of Taxation about your case. ### One lump-sum invoice Division of Taxation guidance says the whole bill is taxable when the contractor does not separate materials from labor. The bulletin for homeowners says it this way. > However, if the contractor charges you a lump sum for the taxable capital improvement, repair, maintenance, or installation service without separating the charge for materials from the charge for labor, you are required to pay the Sales Tax on the total amount of the bill. Source: p.3, "Paying Sales Tax on Home Improvements", "Taxable Services." Document: Tax Topic Bulletin S&U-2, "Sales Tax and Home Improvements" (Division of Taxation). Revision as printed: "Rev. 9/17". Read 2026-11-13. [https://nj.gov/treasury/taxation/pdf/pubs/sales/su2.pdf](https://nj.gov/treasury/taxation/pdf/pubs/sales/su2.pdf) The bulletin for contractors says the same. > If the contractor does not itemize the materials and the labor for a taxable job, the entire receipt is subject to tax. Source: p.9, "Taxable Services." Document: Tax Topic Bulletin S&U-3, "Contractors and New Jersey Taxes" (Division of Taxation). Revision as printed: "Rev. 5/25". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su3.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su3.pdf) Both sentences are written about contractors. For a dealer, the sale and the installation are two separate transactions (see way 2). Not tax advice; ask the NJ Division of Taxation about your case. ### Why an ST-8 does not cover flooring Form ST-8 is the certificate for an exempt capital improvement. The form states who may issue it. > May be issued only by the owner of the real property Source: p.1, form heading. Document: Form ST-8, "Certificate of Exempt Capital Improvement" (Division of Taxation). Revision as printed: "ST-8 (3-23)". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/other_forms/sales/st8.pdf](https://www.nj.gov/treasury/taxation/pdf/other_forms/sales/st8.pdf) Its instructions list flooring among the services it cannot be issued for. > The following are examples of taxable capital, improvements. This form cannot be issued for these services, which are subject to Sales Tax on and after October 1, 2006: Source: p.2, Instructions, list of taxable capital improvements. Document: Form ST-8, "Certificate of Exempt Capital Improvement" (Division of Taxation). Revision as printed: "ST-8 (3-23)". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/other_forms/sales/st8.pdf](https://www.nj.gov/treasury/taxation/pdf/other_forms/sales/st8.pdf) > • Installing carpeting and other flooring Source: p.2, Instructions, list of taxable capital improvements (third item). Document: Form ST-8, "Certificate of Exempt Capital Improvement" (Division of Taxation). Revision as printed: "ST-8 (3-23)". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/other_forms/sales/st8.pdf](https://www.nj.gov/treasury/taxation/pdf/other_forms/sales/st8.pdf) ### The same materials on a wall or ceiling ANJ-5 treats flooring materials differently when they go on a wall or ceiling. "Those listed above" in the quote below means the flooring materials ANJ-5 lists on pp.1-2. > The installation of flooring materials such as those listed above on walls or ceilings that qualifies as a capital improvement to real property is exempt from Sales Tax. The charge for installing these same materials on the floor is taxable. Source: p.2, "Flooring Materials Applied to Walls or Ceilings." Document: Publication ANJ-5, "Floor Covering Dealers & New Jersey Sales Tax" (Division of Taxation). Revision as printed: "Rev. 12/17". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf) The next sentence in ANJ-5 says where the floor covering stops. > Floor covering does not include more than the height of a transition floor piece. Source: p.2, "Flooring Materials Applied to Walls or Ceilings." Document: Publication ANJ-5, "Floor Covering Dealers & New Jersey Sales Tax" (Division of Taxation). Revision as printed: "Rev. 12/17". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf) ### Resale certificates A floor covering dealer may accept a resale certificate from one kind of customer only. > NOTE: A floor covering dealer may accept a resale certificate only when the customer is a retail floor covering dealer. Source: p.1, "Sales of Floor Covering", end of first paragraph. Document: Publication ANJ-5, "Floor Covering Dealers & New Jersey Sales Tax" (Division of Taxation). Revision as printed: "Rev. 12/17". Read 2026-11-13. [https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf](https://www.nj.gov/treasury/taxation/pdf/pubs/sales/anj5.pdf) ### The bill A3533 A3533 is a New Jersey Assembly bill. Its synopsis states what it would do. > Excludes certain services rendered in connection with installation of carpeting and other flooring from sales and use tax. Source: SYNOPSIS. Document: Assembly, No. 3533, State of New Jersey, 222nd Legislature. Revision as printed: "Introduced Pending Technical Review by Legislative Counsel." Read 2026-11-13. [https://pub.njleg.gov/Bills/2026/A4000/3533_I1.HTM](https://pub.njleg.gov/Bills/2026/A4000/3533_I1.HTM) Its statement says when the exemption would apply. > Under the bill, receipts from sales of services rendered in connection with the installation of carpeting and other flooring, such as linoleum, tile, hardwood, and marble, are exempt from the sales and use tax, if the carpeting or other flooring, when installed, constitutes an addition or “capital improvement” to real property, property, or land. Source: STATEMENT, second paragraph. Document: Assembly, No. 3533, State of New Jersey, 222nd Legislature. Revision as printed: "Introduced Pending Technical Review by Legislative Counsel." Read 2026-11-13. [https://pub.njleg.gov/Bills/2026/A4000/3533_I1.HTM](https://pub.njleg.gov/Bills/2026/A4000/3533_I1.HTM) The bill's text prints the 2006 flooring words of clause (v) in brackets. > (v) services rendered in installing property which, when installed, will constitute an addition or capital improvement to real property, property or land, other than landscaping services [and other than installing carpeting and other flooring]. Source: §1, amending C.54:32B-3(b)(2)(v). Document: Assembly, No. 3533, State of New Jersey, 222nd Legislature. Revision as printed: "Introduced Pending Technical Review by Legislative Counsel." Read 2026-11-13. [https://pub.njleg.gov/Bills/2026/A4000/3533_I1.HTM](https://pub.njleg.gov/Bills/2026/A4000/3533_I1.HTM) The Legislature's official status page for the bill could not be read for this page. ## What these texts do not say - No document read for this page states the sales tax rate in force today. This page gives no rate. - They do not say how tax applies when a floor covering dealer shows the floor covering and its installation as one combined figure. - The lump-sum rule comes from Division of Taxation bulletins. The statute's definition of a taxable receipt was not read for this page. - ANJ-5, S&U-2 and S&U-3 do not name baseboards or stair treads. - The bill text does not show whether A3533 has passed or where it stands. - None of these texts compares what the three ways to buy cost in total. This page does not either. ## Last checked Last checked: 2026-11-13 ## Disclosure The publisher of this site is a flooring retailer. It sells flooring materials, including the categories these pages mention. Page views are counted with Google Analytics; the privacy page says what is sent. - [About](https://njflooringguide.com/about) - [Sources](https://njflooringguide.com/sources) - [Privacy](https://njflooringguide.com/privacy)