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!

Individual Taxes Business Taxes Sales Taxes Property Taxes

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

2018 State Business Tax Climate Index

October 17, 2017

New York, New Jersey, and Connecticut v. the United States: A Preview of the SALT Limit Constitutional Challenge

April 3, 2018

Is the State and Local Tax Deduction in Place to Protect Against Double Taxation?

September 21, 2017

Ten States Begin FY2018 Without Budget In Place

July 3, 2017

State Tax Changes Taking Effect July 1, 2017

June 27, 2017

Organ Donation Tax Credits: A Life or Death Proposal?

June 7, 2017

Where Did Americans Move in 2016?

January 4, 2017

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

Lunch Links: Questionable Trump Tax Maneuver to Avoid Debts Cited; Colorado Rebuts Arizona Ads Opposing State’s Marijuana Voter Proposition; Left’s Opposition to Washington Carbon Tax Criticized; Yale Daily News Endorsement Puts Tax Exemption at Risk

November 1, 2016

Lunch Links: Gas Up, New Jersey, Before Tomorrow; Don’t Look for Trump Tax Returns Before Election; Former Olympia Mayors Solidly Oppose Income Tax Initiative; Sign Up for TF’s Annual Gala in November

October 31, 2016

Lunch Links: Justice Department Charges Those Defrauding Americans of $300M in IRS Phone Scams; Christie Criticizes Lt. Governor on Transportation Revenue Stance; More TV Series Move to Hollywood for Tax Benefits

October 28, 2016

Lunch Links: Debating Small, Progressive Taxes vs. Larger, Less Progressive; More Blowback on Brownback’s Kansas Tax Policy; Plea Agreement Reached by Tax Court Judge

October 25, 2016

New Jersey’s Gas Tax Increase is Just One Part of the Story

October 24, 2016

Individual and Consumption Taxes

Business Taxes

Taxes and the Economy

Major Publications

Personal and Sales Taxes

Business Taxes

Excise Taxes

Major Publications

Taxes in New Jersey

8.97%

$1479

12.2%

May 13

9.00%

50

6.63%

-0.03%

6.60%

$1021

37.1¢

$2.70

2.16%

$3074

Featured Articles

2018 State Business Tax Climate Index

Related Articles

New York, New Jersey, and Connecticut v. the United States: A Preview of the SALT Limit Constitutional Challenge

New Jersey on Path to Tying for Highest Corporate Tax Rate in Country

State Tax Changes That Took Effect on January 1, 2018

Federal Tax Reform Might Push New Jersey to Reform Tax System

2018 State Business Tax Climate Index

How High Are State and Local Tax Collections in Your State?

Is the State and Local Tax Deduction in Place to Protect Against Double Taxation?

Ten States Begin FY2018 Without Budget In Place

State Tax Changes Taking Effect July 1, 2017

Organ Donation Tax Credits: A Life or Death Proposal?

Where Did Americans Move in 2016?

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

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.

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

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

Lunch Links: Questionable Trump Tax Maneuver to Avoid Debts Cited; Colorado Rebuts Arizona Ads Opposing State’s Marijuana Voter Proposition; Left’s Opposition to Washington Carbon Tax Criticized; Yale Daily News Endorsement Puts Tax Exemption at Risk

Lunch Links: Gas Up, New Jersey, Before Tomorrow; Don’t Look for Trump Tax Returns Before Election; Former Olympia Mayors Solidly Oppose Income Tax Initiative; Sign Up for TF’s Annual Gala in November

Lunch Links: Justice Department Charges Those Defrauding Americans of $300M in IRS Phone Scams; Christie Criticizes Lt. Governor on Transportation Revenue Stance; More TV Series Move to Hollywood for Tax Benefits

Lunch Links: Debating Small, Progressive Taxes vs. Larger, Less Progressive; More Blowback on Brownback’s Kansas Tax Policy; Plea Agreement Reached by Tax Court Judge

New Jersey’s Gas Tax Increase is Just One Part of the Story