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 2022 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?

Top Individual Income Tax Rate

10.750%

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State and Local Individual Income Tax Collections per Capita

$1692

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State and Local Tax Burden

13.2%

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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

6.60%

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State and Local General Sales Tax Collections per Capita

$1221

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State Gasoline Tax Rate (cents per gallon)

50.07¢

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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

$3513

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