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Taxes In New Jersey

New Jersey Tax Rates, Collections, and Burdens

How does New Jersey’s tax code compare? New Jersey has a graduated individual income tax, with rates ranging from 1.40 percent to 10.75 percent. There is also a jurisdiction that collects local income taxes. New Jersey has a 6.5 percent to 11.5 percent corporate income tax rate. New Jersey has a 6.625 percent state sales tax rate, a max local sales tax rate of 3.313 percent, and an average combined state and local sales tax rate of 6.60 percent. New Jersey’s tax system ranks 50th overall on our 2023 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and New Jersey is no exception. The first step towards understanding New Jersey’s tax code is knowing the basics. How does New Jersey collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
10.750%See Full Study
State Local Individual Income Tax Collections per Capita
$1816Rank: 12
State and Local Tax Burden
11.7%Rank: 44See Full Study

Business Taxes

Top Corporate Income Tax Rate
11.5%See Full Study
State Business Tax Climate Index Ranking
50See Full Study

Sales Taxes

State Sales Tax Rate
6.625%Rank: 8See Full Study
Average Local Sales Tax Rate
-0.03%See Full Study
Combined State and Average Local Sales Tax Rate
6.60%Rank: 30See Full Study
State and Local General Sales Tax Collections per Capita
$1193Rank: 27
State Gasoline Tax Rate (cents per gallon)
50.07¢Rank: 5
State Cigarette Tax Rate (dollars per 20-pack)
$2.70Rank: 13

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
2.23%Rank: 1
State and Local Property Tax Collections Per Capita
$3431Rank: 1

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