New Jersey Tax Guide 2026

New Jersey Income Tax Overview

New Jersey has a Up to 10.75% — highest property taxes in US at 2.23%. When combined with federal income tax and FICA taxes, New Jersey residents in the median income range of $89,703 typically face a combined effective tax rate of approximately 34% on their gross income. The state income tax is calculated on taxable income after the federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) for 2026.

New Jersey Sales Tax Rate 2026

New Jersey's combined sales tax rate is 6.60%, which includes a state rate plus an average local rate. On a $100 purchase, you pay $6.60 in sales tax — and $33.00 on a $500 purchase. Rates can vary within the state based on county and city jurisdiction.

Property Taxes in New Jersey

New Jersey homeowners pay an effective property tax rate of 2.23% annually. On the New Jersey median home price of $480,000, that means approximately $10,704 per year — or $892 added to your monthly mortgage payment. New Jersey's property taxes are among the highest in the US, which is an important consideration when comparing the cost of homeownership across state lines.

Total Tax Burden for New Jersey Residents

When calculating the total tax burden for a New Jersey household earning $89,703 annually, you must add: federal income tax (approximately $10,764), FICA taxes (7.65% = $6,862), New Jersey state income tax (approximately $6,750), and property taxes if you own a home. Use the specific calculators above to get your exact personalized numbers based on your income, filing status, and situation.

Tax Tips for New Jersey Residents in 2026

• Maximize your 401(k) to $24,500 — reduces both federal AND New Jersey state income tax
• HSA contributions are deductible from both federal and state income tax in New Jersey
• Check if New Jersey has its own standard deduction (some states have lower amounts than federal)
• The 2026 OBBBA tip and overtime deductions apply at federal level — check New Jersey conformity