New Jersey Tax Overview
New Jersey has the third-highest top income tax rate in the nation at 10.75% on income over $1 million. The state also has the highest effective property tax rates in the country, averaging around 2.23%. Despite the high tax burden, New Jersey benefits from proximity to New York City and Philadelphia, driving strong household incomes.
New Jersey Tax Quick Facts (2026)
| Income Tax | progressive (top rate: 10.8%) |
| Sales Tax (State) | 6.63% |
| Property Tax (Avg Effective) | 2.23% |
| Median Household Income | $89,296 |
| Capital | Trenton |
| Population | 9.3 million |
New Jersey Income Tax Brackets (2026)
| Income Range | Tax Rate |
|---|---|
| $0 — $20,000 | 1.40% |
| $20,000 — $35,000 | 1.75% |
| $35,000 — $40,000 | 3.50% |
| $40,000 — $75,000 | 5.53% |
| $75,000 — $500,000 | 6.37% |
| $500,000 — $1,000,000 | 8.97% |
| $1,000,000+ | 10.75% |
Frequently Asked Questions About New Jersey Taxes
Does New Jersey have a state income tax?+
Yes, New Jersey has a progressive income tax system with a top marginal rate of 10.8%.
What is the property tax rate in New Jersey?+
The average effective property tax rate in New Jersey is approximately 2.23% of assessed home value. On a $300,000 home, that is about $6,690 per year.
What is the sales tax rate in New Jersey?+
The state sales tax rate in New Jersey is 6.63%. Local jurisdictions may add additional sales tax.
What is the median household income in New Jersey?+
The median household income in New Jersey is approximately $89,296 per year.
How does New Jersey's tax burden compare to other states?+
New Jersey's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.