New Jersey taxes — property, income, sales, retirement

Home·Tax overview·New Jersey

Property tax, income tax, sales tax, and retirement-income treatment in New Jersey. Quick read for movers, retirees, and remote workers.

Highest property tax rate in the country. Top marginal income 10.75%. SS untaxed; pension exclusion.
Effective property tax
2.23%
of home value/yr
Income tax (top rate)
10.75%
Sales tax (state)
6.62%
local adds more
SS taxed by state?
No

Property tax

New Jersey’s effective property tax rate is approximately 2.23% of assessed home value per year. On a $350,000 home that’s about $7,805/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 10.75%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 6.62%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Partial exclusion / credit available.

Top cities in New Jersey

Newark · pop 317,303 · momentum 61

Jersey City · pop 302,824 · momentum 61

Paterson · pop 160,463 · momentum 76

Elizabeth · pop 140,413 · momentum 70

Trenton · pop 91,193 · momentum 64

Clifton · pop 90,322 · momentum 69

Compare to other states: All 50 state tax overviews · All New Jersey cities · Best New Jersey cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.