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State Tax Guide 2026

New Jersey Income Tax

New Jersey has a progressive income tax with 7 brackets, ranging from 1.4% to 10.75%. Combined with the highest property taxes in the nation (averaging 2.23%), NJ residents face one of the highest total state tax burdens in the U.S.

10.75%
Top Rate
1.4%
Bottom Rate
2.23%
Avg Property Tax
Progressive
Tax Type

2026 New Jersey Income Tax Brackets — Single

Taxable IncomeNJ Rate
$0$20,0001.4%
$20,000$35,0001.75%
$35,000$40,0003.5%
$40,000$75,0005.525%
$75,000$500,0006.37%
$500,000$1,000,0008.97%
$1,000,00010.75%

New Jersey Property Tax

New Jersey has the #1 highest property taxes in the US, averaging 2.23%of assessed value. For the median NJ home (~$450,000), that's over $10,000/year in property taxes.

CountyEffective RateTax on $400K Home
Essex (Newark area)2.95%$11,800
Bergen2.1%$8,400
Hudson (Jersey City)2.35%$9,400
Monmouth1.89%$7,560
Ocean1.88%$7,520
Property Tax Deduction: NJ allows a deduction of up to $15,000 in property taxes paid on your principal residence as an itemized deduction on your NJ return. The ANCHOR program also provides rebates of $1,500–$1,750 for eligible homeowners.

Key New Jersey Tax Notes

Social Security Exempt
New Jersey does not tax Social Security benefits for most residents (income-limited for high earners).
Pension Exclusion
Up to $100,000 of pension/retirement income excluded for married filers 62+ with income under $150,000.
NJ Earned Income Tax Credit
40% of the federal EITC as an NJ refundable credit for qualifying workers.
NJ Standard Deduction
NJ does not have a standard deduction. Taxpayers choose from personal exemptions or itemized deductions.
NJ Inheritance Tax
NJ has an inheritance tax (not estate tax): 0%–16% depending on beneficiary relationship and amount.
NJ Sales Tax
6.625% state sales tax; reduced to 3.3125% in Urban Enterprise Zones.

Calculate Your New Jersey Tax Burden

NJ income tax + see how property taxes affect your total picture.

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