Newark, NJ Taxes 2025
Complete local tax guide and OBBBA calculator
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Newark Tax Overview 2025
High property taxes. Major transportation hub near NYC.
Local Income Tax
0%
City/county rate
Sales Tax
6.63%
State + local
Property Tax
3.10%
Effective rate
Median Home
$280,000
Home value
No Local Income Tax!
Newark does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Newark is located in New Jersey (1.4% - 10.75% state income tax)
💼 Newark Local Income Tax
Newark does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in New Jersey) and federal income tax.
This is good news for Newark residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Newark
🛒 Newark Sales Tax 2025
The combined sales tax rate in Newark is 6.63%. This includes both the New Jersey sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Newark. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on New Jersey law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $3.31 | $53.31 |
| $100 | $6.63 | $106.63 |
| $500 | $33.13 | $533.13 |
| $1,000 | $66.25 | $1,066.25 |
🏠 Newark Property Tax 2025
The average effective property tax rate in Newark is 3.10%. Based on the median home value of $280,000, the typical homeowner pays approximately $8,680 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Newark based on school district and other taxing authorities.
Estimated Annual Property Tax in Newark
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $6,200 | $517 | ✓ Yes |
| $300,000 | $9,300 | $775 | ✓ Yes |
| $400,000 | $12,400 | $1,033 | ✓ Yes |
| $500,000 | $15,500 | $1,292 | ✓ Yes |
| $750,000 | $23,250 | $1,938 | ✓ Yes |
| $1,000,000 | $31,000 | $2,583 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Newark Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Newark Residents
Very high property taxes make SALT cap increase extremely valuable.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Newark resident.
Available OBBBA Deductions:
Calculate Your Newark Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Newark resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Newark?
The combined sales tax rate in Newark is 6.63%. This includes both state and local sales taxes.
Does Newark have a local income tax?
Newark has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Newark?
The average effective property tax rate in Newark is 3.10%. On a home worth $280,000, you'd pay approximately $8,680 per year.
How do OBBBA deductions benefit Newark residents?
Very high property taxes make SALT cap increase extremely valuable. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.