New Jersey Taxes 2025
Complete tax guide and OBBBA calculator for NJ residents
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New Jersey Tax Overview 2025
State Income Tax
1.4% - 10.75%
Graduated rate structure
Combined Sales Tax
6.60%
State 6.63% + Local -0.03%
Avg Property Tax
2.47%
Highest property tax rate in the nation
💼 New Jersey Income Tax 2025
New Jersey has graduated income tax rates from 1.4% to 10.75%.
When filing your New Jersey state tax return, your income tax liability depends on your taxable income and filing status. New Jersey uses a graduated income tax structure.
New Jersey Income Tax Quick Facts
🛒 New Jersey Sales Tax 2025
New Jersey's combined average sales tax rate is 6.60%, which includes both state and local components. The state sales tax rate is 6.63%, while local jurisdictions add an average of -0.03%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 New Jersey Property Tax 2025
New Jersey's average effective property tax rate is 2.47%. Highest property tax rate in the nation.
Property taxes in New Jersey are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $6,175 | $515 |
| $400,000 | $9,880 | $823 |
| $600,000 | $14,820 | $1,235 |
OBBBA Tax Benefits for New Jersey Residents
New Jersey residents are major beneficiaries of the $40,000 SALT cap due to the nation's highest property taxes.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that New Jersey residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for NJ Residents:
Calculate Your New Jersey Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a New Jersey resident.
Calculate My SavingsHow New Jersey Compares
| Tax Type | NJ Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 1.4% - 10.75% | 5.1% | Varies |
| Sales Tax | 6.60% | 7.12% | Below Avg |
| Property Tax | 2.47% | 1.10% | Above Avg |
Frequently Asked Questions
What is the income tax rate in New Jersey?
New Jersey has a graduated income tax with rates of 1.4% - 10.75%. New Jersey has graduated income tax rates from 1.4% to 10.75%.
What is the sales tax in New Jersey?
The combined average sales tax rate in New Jersey is 6.60%. This includes the state rate of 6.63% plus an average local rate of -0.03%.
How do OBBBA deductions benefit New Jersey residents?
New Jersey residents are major beneficiaries of the $40,000 SALT cap due to the nation's highest property taxes. New Jersey residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are New Jersey taxes due?
For tax year 2025, New Jersey state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.