New Jersey (NJ) Tax Rates — 2026
Income Tax
10.75%
Sales Tax
6.6%
Property Tax
2.23%
Income Tax
Type: Graduated (marginal brackets)
| From | To | Rate |
|---|---|---|
| $0 | $20,000 | 1.4% |
| $20,000 | $35,000 | 1.75% |
| $35,000 | $40,000 | 3.5% |
| $40,000 | $75,000 | 5.525% |
| $75,000 | $500,000 | 6.37% |
| $500,000 | $1,000,000 | 8.97% |
| $1,000,000 | and above | 10.75% |
Standard Deduction: N/A (uses personal exemptions or credits instead)
Sales Tax
State Rate6.625%
Avg Local Rate-0.03%
Combined Rate6.6%
Groceries: Exempt
+0.03% vs national avg
Property Tax
Effective Rate2.23%
Median Annual Tax$8,797
+1.16% vs national avg (1.07%)
Retirement Income Tax
Social SecurityNO
PensionsPARTIAL
401(k) / IRAYES
Estate & Inheritance Tax
Has Estate Tax: YES
ExemptionNone
Top Rate16%
Corporate Tax
Corporate Income Tax Rate: 11.5%
Additional Notes
New Jersey has the highest property taxes in the nation. No standard deduction — uses personal exemptions. Pension/retirement exclusion up to $100,000 for those 62+ with income under $150,000. Has an inheritance tax (not estate tax) — the estate tax was repealed in 2018.
Compare with another state:
Sources: New Jersey Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.