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

10.750%

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State and Local Individual Income Tax Collections per Capita

$1570

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State and Local Tax Burden

12.2%

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Top Corporate Income Tax Rate

10.5%

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State Business Tax Climate Index Ranking

50

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State Sales Tax Rate

6.625%

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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

$1174

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State Gasoline Tax Rate (cents per gallon)

41.40¢

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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

2.21%

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State and Local Property Tax Collections Per Capita

$3276

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Featured Articles

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March 31, 2021

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March 10, 2021

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February 22, 2021

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State and Local Tax Burdens, Calendar Year 2019

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State Aid in American Rescue Plan Act Is 116 Times States’ Revenue Losses

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State Tax Changes Effective January 1, 2021

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Gross Receipt Taxes Become Part of New Jersey’s Recreational Marijuana Legalization

Details and Analysis of State and Local Aid Under the Bipartisan State and Local Support and Small Business Protection Act of 2020

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