Are information services taxable in New Jersey?
Yes. New Jersey taxes information services at 6.625%. Database-access products, the Westlaw and LexisNexis pattern, are the textbook example. That is the opposite of how New Jersey treats SaaS, which it does not tax.
| Short answer | Taxable at 6.625% |
|---|---|
| Authority | N.J.S.A. 54:32B-2(yy); TB-72 |
| Last reviewed | 2026-09-30 |
Why
New Jersey enumerates information services as a taxable service under N.J.S.A. 54:32B-2(yy). Software access is treated differently: the Division of Taxation's Technical Bulletin TB-72 says SaaS is not a transfer of tangible personal property and is not an enumerated service, so SaaS stays untaxed.
That makes classification the whole question in New Jersey. The same AI output can be exempt as SaaS access or taxable at 6.625% as an information service, depending on whether the buyer is paying for use of an application or for compiled information.
Business vs. consumer buyers
AgentTax applies the same answer to business and consumer buyers here. Only a few states change the answer by buyer: Iowa and Washington exempt some business purchases by statute, and Maryland and Ohio split the rate or taxability by use.
Where the line is
- Output that incorporates information the seller compiled and furnishes to multiple customers routes to information services, even when the buyer supplied some of the inputs.
- Data processing on the buyer's own data is a separate category that New Jersey does not tax.
How AgentTax classifies information services
Selling access to compiled information: databases, research products, reports and data feeds the seller assembles and furnishes to many customers. AgentTax routes AI research work to its information service category.
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Open the calculatorFrequently asked questions
- Does New Jersey tax SaaS the same way as information services?
- No. Under TB-72, SaaS access is not a transfer of tangible personal property and is not an enumerated service. Information services, by contrast, are taxable at 6.625%.
- What counts as an information service in New Jersey?
- Selling compiled information, such as database-access products of the Westlaw and LexisNexis type. AgentTax routes AI research output to this category.
Related
- All New Jersey digital tax answers
- Is SaaS taxable in New Jersey? (full guide)
- Is data processing taxable in New Jersey?
- Are professional services taxable in New Jersey?
- Information services: every state we cover
- Are information services taxable in Arkansas?
- Are information services taxable in California?
- Are information services taxable in Connecticut?
- Are information services taxable in Florida?
- Are information services taxable in Georgia?
- Are information services taxable in Idaho?
Sources
- N.J.S.A. 54:32B-2(yy)
- TB-72
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.