Skip to content

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?

See Related Articles

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

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

All Related Articles

Economic Nexus Tax Treatment by State, 2024

Economic Nexus Treatment by State, 2024

Reforming economic nexus thresholds would not only be better for businesses but for states as well. It is more cost-effective for states to focus on—and simplify—compliance for a reasonable number of sellers than to impose rules that have low compliance and are costly to administer. 

4 min read
state flat tax trend and state flat income taxes 2024

The State Flat Tax Revolution: Where Things Stand Today

In 2021 and 2022 alone, more states enacted laws converting graduated-rate individual income tax structures into single-rate income tax structures than did so in the whole 108-year history of state income taxation up until that point.

10 min read
2024 sales taxes including 2024 sales tax rates 2024 state and local sales tax rates

State and Local Sales Tax Rates, 2024

Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).

9 min read
State population changes in 2023 low-tax states and high-tax states United Van Lines U-Haul and Census data

Americans Moved to Low-Tax States in 2023

The pandemic has accelerated changes to the way we live and work, making it far easier for people to move—and they have. As states work to maintain their competitive advantage, they should pay attention to where people are moving, and try to understand why.

5 min read