A Shopify merchant selling dried fruit products is incorrectly being charged sales tax in New Jersey, despite categorizing items as dried fruit and using Shopify Tax’s automatic exemption features. New Jersey generally exempts grocery-type foods like dried fruit from sales tax.
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The discussion remains open with no confirmed resolution yet.
My products are all food products we are using “Shopify Tax” which states the following:
Sales tax holidays applied automatically
Add and maintain manual tax overrides
My items are categorized as a dried fruit but Shopify Tax is still collecting taxes for food in New Jersey which is incorrect.
In New Jersey, dried fruits are generally exempt from sales tax, but taxability can vary based on specific product classifications. Ensure that your products are correctly categorized in Shopify as “exempt” food items. You may need to manually adjust the tax settings or contact Shopify support for help in resolving the issue.
It sounds like you’ve set up your products correctly in Shopify Tax, but there may be a mismatch between how your dried fruit items are categorized and how New Jersey’s food tax exemptions are being applied. In New Jersey, most grocery-type food items such as dried fruit are generally exempt from sales tax, but Shopify relies on product categorization and state-level tax rules to apply exemptions automatically.
Here’s what you can do to resolve the issue:
Check Product Categorization
Make sure your dried fruit products are tagged under the correct product category in Shopify. Sometimes if the system classifies the item as “snack foods” or “prepared foods” instead of “grocery/food,” it may still apply tax incorrectly.
Review Tax Overrides
Since Shopify Tax allows for manual tax overrides, you can set up a rule that exempts your dried fruit products in New Jersey. This way, Shopify will stop charging tax for those specific items at checkout.
Consult Shopify Support
If the categorization is correct but taxes are still being applied, it could be a system-level issue. Contact Shopify Support with examples of the taxed orders so they can review and adjust your tax settings.
Keep Documentation Handy
Since food tax rules vary by state, it’s always best to have your exemption documentation ready in case you need to confirm your product category with Shopify or a tax professional.
This is similar to how digital tools work in other areas—just like creators prefer CapCut Pro download to access advanced features without restrictions, sometimes you need to customize your Shopify settings (via manual overrides) to get the correct results when the default automation doesn’t fully apply to your situation.
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Hi @CrispyGreen
New Jersey does have an exemption for some grocery products, and some dried fruits may not be tax-exempt depending on if they are classified as “prepared” or “packaged” foods. Shopify Tax is based on category mapping, however it might not reflect local law exactly. You can also create a manual tax override for these products in Shopify so your New Jersey sales are properly exempted.