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

$1488

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State and Local Tax Burden

12.2%

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Tax Freedom Day

April 30

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Top Corporate Income Tax Rate

11.5%

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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

6.63%

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State and Local General Sales Tax Collections per Capita

$1065

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

2.13%

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State and Local Property Tax Collections Per Capita

$3127

Featured Articles

Tax Trends at the Dawn of 2020

January 6, 2020

Local Income Taxes in 2019

July 30, 2019

2019 State Business Tax Climate Index

September 26, 2018

Related Articles

Tax Trends at the Dawn of 2020

January 6, 2020

Local Income Taxes in 2019

July 30, 2019

Millionaire’s Tax Gets Axed from New Jersey Budget

July 10, 2019

The Tax Proposal That Refuses to Die: New Jersey’s Millionaire’s Tax

June 7, 2019

Facts and Figures 2019: How Does Your State Compare?

March 19, 2019

Who Wants to Tax a Millionaire? The State of New Jersey

March 11, 2019

2019 State Business Tax Climate Index

September 26, 2018

Evaluating the SALT Deduction Constitutional Challenge

July 17, 2018

Business and Individual Taxpayers See No Reprieve in New Jersey Tax Package

July 3, 2018

New Jersey May Adopt Highest Corporate Tax in the Country

June 19, 2018

New Jersey Still Considering Hefty Corporate Tax Increase, a Move in the Wrong Direction

June 12, 2018

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

April 3, 2018

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

March 12, 2018

State Tax Changes That Took Effect on January 1, 2018

January 2, 2018

Federal Tax Reform Might Push New Jersey to Reform Tax System

November 20, 2017

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

October 12, 2017

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