New Jersey

The facts on New Jersey’s Tax Climate

New Jersey's Individual Income Tax System
New Jersey's individual income tax system consists of six brackets with a top rate of 8.97%. The top rate ranks 5th highest among states levying an individual income tax. New Jersey's state and local tax collections per person were $1,359 in 2013, which ranked 8th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

New Jersey's Corporate Income Tax System
New Jersey's corporate income tax system consists of three brackets with a top rate of 9%. The top rate ranks 5th highest among states levying a corporate income tax. New Jersey's state and local corporate income tax collections per person were $256 in 2013 which ranked 8th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita

New Jersey Sales and Excise Taxes
New Jersey levies a 7% general sales or use tax on consumers, which is above the national median of 5.95%. The average local sales tax rate is an additional 0%. New Jersey's state and local governments collect $949 per person in general sales taxes and $439 per person in excise taxes, for a combined figure of $1,388, which ranks 30th highest nationally. New Jersey's gasoline tax stands at 14.5 cents per gallon, 49th highest nationally, while its cigarette tax stands at $2.70, 9th highest nationally.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita

New Jersey Property Tax Collections Highest in Nation
New Jersey's state and local governments collected approximately $2,989 per person in property taxes in 2013, which ranks 1st nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on May 12th in New Jersey

Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, New Jersey taxpayers have to work until May 12th (49th earliest nationally) to pay their total tax bill.

New Jersey's State and Local Tax Burden Ranks 3rd

New Jersey's 2012 tax burden of 12.2% ranks 3rd highest in the nation, and is above the national average of 9.9%. New Jersey's taxpayers pay $6,926 per capita in state and local taxes.
New Jersey's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009

New Jersey's 2016 Business Tax Climate Index Ranks 50th

New Jersey ranks 50th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (43rd), individual income taxes (48th), sales taxes (47th), unemployment insurance taxes (31st), and taxes on property (50th), including residential and commercial property.
State Business Tax Climate Index (full study)

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