First, there are New Jersey’s “Urban Enterprise Zones,” where purchases made at qualified businesses (typically retailers) face a reduced sales tax rate of 3.3125%. The flat sales tax rate means you will pay the same rate wherever you are in the state, with two exceptions. New Jersey has a single, statewide sales tax rate. Expenses that may be deducted in New Jersey include certain unreimbursed medical expenses, New Jersey property taxes, Archer MSA contributions and, if you're self-employed, health insurance payments. Some forms of income that are not taxable include unemployment compensation, Social Security benefits, workers’ compensation and lottery winnings of $10,000 or less. The table below shows brackets and rates for filers in New Jersey.Īll of the rates above apply to New Jersey taxable income, which is total income (including capital gains) minus certain deductions, as well as the New Jersey personal exemption of $1,000. Rates are based on income tax brackets, with income within each bracket being taxed at the corresponding rate. New Jersey’s income tax is structured similarly to the federal income tax. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. New Jersey’s sales tax rate is relatively close to the national average.Ī financial advisor can help you understand how taxes fit into your overall financial goals. Of course, if you don’t own a home or if your income places you in one of New Jersey’s lower tax brackets, the picture may not be so bleak. The state’s income tax ranges from 1.40% up to 10.75%, one of the highest top rates in the country. Homeowners in New Jersey pay an average of $8,797 in property taxes annually, which equals an effective property tax rate of 2.47%, the highest in the nation. The Garden State has a lot of things going for it, but low taxes are not among its virtues. Gas tax: 42.30 cents per gallon of regular gasoline, 49.30 cents per gallon of diesel.Property tax: 2.47% average effective rate.
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