Taxes in New Jersey

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing New Jersey’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

8.97%

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State and Local Individual Income Tax Collections per Capita

$1479

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State and Local Tax Burden

12.2%

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Tax Freedom Day

May 13

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Top Corporate Income Tax Rate

9.00%

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State Business Tax Climate Index Ranking

50

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State Sales Tax Rate

6.63%

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Average Local Sales Tax Rate

-0.03%

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Combined State and Average Local Sales Tax Rate

6.60%

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State and Local General Sales Tax Collections per Capita

$1021

State Gasoline Tax Rate (cents per gallon)

37.1¢

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State Cigarette Tax Rate (dollars per 20-pack)

$2.70

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

2.16%

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State and Local Property Tax Collections Per Capita

$3074

Featured Articles

2019 State Business Tax Climate Index

September 26, 2018

2018 State Business Tax Climate Index

October 17, 2017

Related Articles

2019 State Business Tax Climate Index

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June 19, 2018

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Lunch Links: OECD Raises U.S. Growth Projections Based on Trump’s Economic Plans; Compromise Support for D.C. Payroll Tax for Paid Leave; N.J. Gov. Christie Reverses Stance on Tax Reciprocity Pact

November 29, 2016

Lunch Links: Not So Sweet Soda Taxes Have Multi-City Appeal; Trump Includes Tax Reform in Efforts to Keep Carrier from Bolting; Christie Cites ‘Blood Money’ Tax Revenue in Shunning Marijuana Legalization for N.J.

November 28, 2016

Lunch Links: IRS Regs Could Change in Trump Administration; New Jersey’s Bond Rating Lowered Again; Illinois Shortfall Worse Than Expected; Politico Forum Upcoming on Tax Reform

November 15, 2016

Lunch Links: House Ways and Means Deep in Planning for Tax Reform; Chicago Next Up to Vote on Soda Tax; Seattle and L.A. Vote in Taxes for Transportation Improvements; San Diego Rejects Tax for NFL Stadium

November 10, 2016