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?


Related Articles

Oklahoma Cuts Tax Expenditures

June 10, 2010

Christie Thinks Tax Increases Unneeded

May 26, 2010

Governors Oppose Millionaire’s Tax Proposals in Minnesota and New Jersey

May 14, 2010

Star-Ledger Letter to the Editor

April 21, 2010

New Jersey Considers Property Tax Constraining Measure

March 30, 2010

New Jersey is in Fact a High Tax State

March 12, 2010

Rich Take Charity Money with Them Leaving NJ

February 17, 2010

Pet Care Deduction: Government Micromanagement, Tax Code Complexity, and Bad Incentives

December 15, 2009

New York Times: New York Ready for Prop 13-Style Property Tax Revolt?

October 5, 2009

“Fighting New Jersey’s Tax Crush”

September 28, 2009

More Updated State Tax Rate Tables: Sales, Excise, and Corporate Income Taxes

July 16, 2009

Some States Approve Last Minute Budgets

July 1, 2009

New Jersey New Budget Relies On Several Tax Increases

June 26, 2009

New Jersey Primary Voting Today

June 2, 2009

New Jersey’s Gubernatorial Race, Part I: Governor Corzine Proposes 10.75% Income Tax Rate

May 27, 2009

New Jersey’s Gubernatorial Race, Part II: Governor Corzine’s Challengers Call for Lowering Tax Burdens

May 27, 2009

Hawaii’s New Top Rate of 11% on Income Over $200,000 is Highest State Rate in U.S.

May 12, 2009

The Price of Paradise: Hawaii Becomes Fifth State to Adopt New Income Tax Brackets on High-Earners

May 12, 2009

We Will Continue to Criticize Ideas That Don’t Follow Principles of Sound Tax Policy, No Matter Who Proposes Them, Republican or Democrat

April 29, 2009

Did People Flee New Jersey After 2004 Income Tax Hike?

April 14, 2009