New Jersey State Taxes
Quick Tax Facts
Income Tax: 1.4% – 10.75%
State Sales Tax: 6.625%
Median Property Tax: $9,274
Overview
New Jersey, also known as the Garden State, is famous for its beaches (Jersey Shore) and top-notch educational opportunities. It’s culturally diverse and often ranks as one of the happiest states in the country. When it comes to taxes, however, it’s actually one of the least friendly, especially for high-income earners. The state has a steep progressive income tax rate structure and the highest property taxes in the country.
New Jersey Income Tax
New Jersey has a progressive income tax rate structure that increases with income. The state income tax rates currently range between 1.4% and 10.75%.
| New Jersey Income Tax Rates – Single or Married Filing Separately |
|---|
| If your taxable income is more than: | But not more than: | Your tax rate is: | Minus: |
|---|---|---|---|
| $0 | $20,000 | 1.4% | $0 |
| $20,000 | $35,000 | 1.75% | $70 |
| $35,000 | $40,000 | 3.5% | $682.50 |
| $40,000 | $75,000 | 5.525% | $1,492.50 |
| $75,000 | $500,000 | 6.37% | $2,126.25 |
| $500,000 | $1,000,000 | 8.97% | $15,126.25 |
| $1,000,000 | 10.75% | $32,926.25 |
| New Jersey Income Tax Rates – Head of Household, Married Filing Jointly, or Qualifying Widow(er) |
|---|
| If your taxable income is more than: | But not more than: | Your tax rate is: | Minus: |
|---|---|---|---|
| $0 | $20,000 | 1.4% | $0 |
| $20,000 | $50,000 | 1.75% | $70 |
| $50,000 | $70,000 | 2.45% | $420 |
| $70,000 | $80,000 | 3.5% | $1,154.50 |
| $80,000 | $150,000 | 5.525% | $2,775 |
| $150,000 | $500,000 | 6.37% | $4,042.50 |
| $500,000 | $1,000,000 | 8.97% | $17,042.50 |
| $1,000,000 | 10.75% | $34,842.50 |
Who Must File?
Full-year and part-year residents must file a state income tax return (NJ-1040) if they meet or exceed the filing thresholds below.
| New Jersey Filing Thresholds |
|---|
| Filing status: | And gross income from everywhere is more than: |
|---|---|
| Single or Married Filing Separately | $10,000 |
| Married Filing Jointly, Head of Household, or Qualifying Widow(er) | $20,000 |
Non-residents with income from New Jersey sources should file NJ-1040NR. Part-year residents may have to file both Form NJ-1040 to report income received while living in the state and Form NJ-1040NR to claim income sources while residing outside of New Jersey.
New Jersey residents who work or live abroad have the same filing requirements as those living in New Jersey.
New Jersey Sales Tax
New Jersey’s state sales tax rate is 6.625%. There are no local sales taxes, however, the specially designated Urban Enterprise Zones are allowed to collect one-half of the sales tax rate. Certain items, such as unprepared food, clothing, and medication are tax-exempt.
New Jersey Property Taxes
New Jersey’s effective property tax rate is 2.26% which is the highest in the country. Unfortunately, rising home prices also result in residents paying some of the largest property tax bills, as well.
The median property tax bill in New Jersey is $9,274 (2022). Tavistock Borough has the highest average annual bill at $29,997 (2022). The lowest average property tax bill in the state is $451 (2022) in Walpack Township.
| Highest | $29997 |
|---|---|
| Median | $9274 |
| Lowest | $451 |
Yearly Cost Per Resident
New Jersey Tax Holidays
New Jersey hosts an annual Back-to-School Sales Tax Holiday that runs during the 10 days leading up to Labor Day. During this time, retail sales of the following items are tax-exempt:
- Computers retailing for less than $3,000
- School art supplies
- Computer supplies with a sales price under $1,000 each
- School supplies and instructional materials
- Sports and recreational equipment
New Jersey Tax Resources
If you need assistance preparing your New Jersey state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the New Jersey Division of Taxation website for additional resources.
- Pay Your Taxes
- Individual Income Tax Forms
- Where’s My Refund?
- Customer Service: 609-292-6400
