New Jersey variant. This is a New Jersey-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
New Jersey income tax (1.4-10.75% across 7 brackets) stacks on top of federal tax. Understanding both layers is essential to estimating your total New Jersey tax bill.
New Jersey state income tax structure
New Jersey taxes income at 1.4-10.75% across 7 brackets, with a top marginal rate of 10.75%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the New Jersey rate to find your true marginal tax on the next dollar earned.
About taxes and housing in New Jersey
New Jersey uses a graduated income tax with a top marginal rate above 10% on the highest earners.
New Jersey has the highest effective property tax rate in the United States, near 2.5%, with median home values exceeding $500,000.
New Jersey's economy is shaped by its dense corridor between New York City and Philadelphia, with pharmaceuticals, finance, and logistics as key sectors.
Worked example: state tax on $97,126
Using the 10.75% top rate as a ceiling, state income tax on $97,126 is at most about $10,441; the actual figure is lower after brackets and deductions.
Quick reference
- State income tax: 1.4-10.75% across 7 brackets
- State sales tax: 6.625% (plus -0.02% avg local)
- Median home value: $510,000
- Median household income: $97,126
- Effective property tax rate: 2.49%
- Avg auto insurance: $2,076/yr
Frequently Asked Questions
Does New Jersey have state income tax?
Yes - 1.4-10.75% across 7 brackets, topping out at 10.75%.
What is the top tax rate in New Jersey?
The top marginal state rate is 10.75%.