New Jersey tax burden — broken down.
New Jersey’s combined tax burden (income + property + sales) lands at 19.84% on our composite — ranking #2 of 51 jurisdictions. The top marginal individual income tax rate is 10.75%.
New Jersey burden, broken into 3 components
| Component | New Jersey rate | National median |
|---|---|---|
| Top marginal income | 10.75% | ~5.30% |
| Effective property | 2.47% | ~1.07% |
| State sales tax | 6.63% | ~5.50% |
| Combined composite | 19.84% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in New Jersey
New Jersey does NOT tax most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by New Jersey. Federal taxation of these income sources is unchanged regardless of state.
How New Jersey compares
Of all 51 US jurisdictions ranked by combined burden composite, New Jersey sits at #2. That puts New Jersey in the top 10 highest-burden states — relocation candidates often look at the bottom-10 list (WY, SD, TN, AK, NH). For the live cross-state heat map, see the interactive tax burden map.
New Jersey metros — local tax overlay
State rates are uniform across New Jersey— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Newarkproperty 2.30% · pop 0.3Mmedian $37,200 →
- Jersey Cityproperty 2.10% · pop 0.3Mmedian $74,200 →
- Trentonproperty 2.20% · pop 0.4Mmedian $62,000 →
- Elizabethproperty 2.40% · pop 0.1Mmedian $48,500 →
- Atlantic Cityproperty 2.30% · pop 0.3Mmedian $38,500 →
More New Jersey metros coming as we expand city coverage.
New Jersey tax — common questions
What is the New Jersey top marginal income tax rate in 2025?
New Jersey's top marginal individual income tax rate is 10.75% on the highest bracket.
What is the New Jersey effective property tax rate?
New Jersey's statewide effective property tax rate is 2.47% of home value (annual). On a $400,000 home that's roughly $9,880/yr. Local variation can be ±0.5pp.
Does New Jersey tax retirement income or Social Security?
New Jersey does NOT tax most retirement income, and does NOT tax Social Security benefits.
Are there any New Jersey-specific tax quirks I should know about?
NJ has the HIGHEST effective property tax rate in the US (2.23%); a $500k home pays ~$11,000/yr. Top income tax rate 10.75% (3rd highest after CA/HI).
For the full New Jersey state tax breakdown — every bracket, every deduction, all the edge cases — read our deep New Jersey state tax guide →
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.