New Jersey State Tax Rate Guide – New Jersey residents and businesses face one of the most complex state tax systems in the U.S. This New Jersey State Tax Rate Guide provides the latest, official 2026 tax rates and brackets for income, sales, property, corporate, and inheritance taxes. Whether you’re a filer, homeowner, or business owner, understanding these rates helps you plan effectively and avoid surprises. All information is drawn from trusted sources including the New Jersey Division of Taxation and the Tax Foundation as of April 2026.
New Jersey Income Tax Rates and Brackets for 2026
New Jersey imposes a progressive gross income tax with rates ranging from 1.4% to 10.75%. The state uses eight brackets that vary by filing status. Taxable income is based on federal adjusted gross income with New Jersey-specific additions and subtractions.
Here are the 2026 brackets (unchanged from recent years; no flat-tax legislation has passed as of April 2026):
Single, Married/Civil Union Filing Separately, or Estates/Trusts
- $0 – $20,000: 1.4%
- $20,001 – $35,000: 1.75%
- $35,001 – $40,000: 3.50%
- $40,001 – $75,000: 5.53%
- $75,001 – $500,000: 6.37%
- $500,001 – $1,000,000: 8.97%
- Over $1,000,000: 10.75%
Married/Civil Union Filing Jointly, Head of Household, or Qualifying Widow(er)/Surviving Partner
- $0 – $20,000: 1.4%
- $20,001 – $50,000: 1.75%
- $50,001 – $70,000: 2.45%
- $70,001 – $80,000: 3.50%
- $80,001 – $150,000: 5.53%
- $150,001 – $500,000: 6.37%
- $500,001 – $1,000,000: 8.97%
- Over $1,000,000: 10.75%
New Jersey offers a standard deduction of $1,000 (single/MFS) or $2,000 (joint/HoH). Many residents also claim property tax deductions or credits. Use the official New Jersey Tax Tables for incomes under $100,000.
New Jersey Sales Tax Rate in 2026
New Jersey charges a flat statewide sales and use tax rate of 6.625%. There are no local sales taxes anywhere in the state, making the rate uniform for all residents and visitors.
The tax applies to most tangible personal property, specified digital products, and certain services. Common exemptions include:
- Most groceries and unprepared food
- Clothing and footwear (with some exceptions)
- Prescription drugs and over-the-counter medications
- Newspapers and magazines
Businesses must register if they have economic nexus ($100,000 in sales or 200 transactions). The rate remains unchanged for 2026, with no special rules announced for the FIFA World Cup period beyond potential localized proposals still under review.
New Jersey Property Tax Rates and Bills in 2026
Unlike income or sales tax, New Jersey does not impose a statewide property tax rate. Taxes are set locally by municipalities and counties, making rates highly variable.
- Statewide average effective property tax rate: Approximately 2.23% (highest in the nation).
- Average 2025 residential tax bill (latest available data, applicable into 2026): $10,570 on a median home value of roughly $405,000. Bills rose 4.7% year-over-year.
Effective rates can range from under 1% in some affluent towns to over 3.5% in others. Homeowners should check their specific municipality via the New Jersey Division of Local Government Services (DCA) dashboards. New Jersey offers property tax relief programs such as the ANCHOR benefit and homestead rebates for qualifying seniors and veterans.
New Jersey Corporate Tax Rates for 2026
New Jersey’s Corporation Business Tax (CBT) is graduated and remains one of the highest in the country:
- Entire Net Income (ENI) ≤ $50,000: 6.5%
- $50,001 – $100,000: 7.5%
- Over $100,000: 9% base rate
The top marginal rate reaches 11.5% when including the 2.5% corporate transit fee surcharge on higher-income corporations (effective since recent legislation). A minimum tax based on gross receipts also applies, ranging from $500 to $2,000 (or higher for affiliated groups).
S corporations follow similar graduated rates on certain income, with a 10.75% withholding rate for non-consenting shareholders in some cases. Allocation uses a single-sales-factor formula.
New Jersey Estate and Inheritance Taxes in 2026
New Jersey eliminated its estate tax for deaths on or after January 1, 2018. However, the state still imposes an inheritance tax based on the beneficiary’s relationship to the decedent.
Inheritance Tax Rates by Class
- Class A (spouse, civil union partner, children, grandchildren, parents, grandparents): 0% (fully exempt).
- Class C (siblings, sons-/daughters-in-law): First $25,000 exempt; then 11% up to $1.075M, 13% next $300K, 14% next $300K, 16% over $1.7M total.
- Class D (all others, including friends, cousins, nieces/nephews): First $700,000 at 15%; over $700,000 at 16% (no tax if under $500 total).
- Class E (charities, nonprofits, religious organizations): 0%.
Returns are due within 8 months of death unless an extension is granted.
How to File and Pay New Jersey State Taxes?
Most residents file Form NJ-1040 electronically via the Division of Taxation’s free portal. Businesses use CBT-100 or other forms. Key deadlines:
- Individual returns: April 15, 2026 (or October 15 with extension).
- Estimated payments required if liability exceeds $500.
Free filing assistance is available for low-income residents. Always verify the latest forms and instructions on the official NJ Division of Taxation website (nj.gov/treasury/taxation).
Recent Changes and 2026 Tax Planning Tips
Rates remain stable for 2026, but homeowners should monitor property reassessments and potential relief expansions. High earners and businesses should watch for any legislative updates regarding the proposed flat income tax or corporate surcharge adjustments. Federal SALT deduction caps continue to limit state tax benefits for many New Jersey filers.
Consult a licensed tax professional or use official calculators for personalized advice. Tax laws can change, and this New Jersey State Tax Rate Guide is for informational purposes only.
For the most current details, visit the New Jersey Division of Taxation directly. Planning ahead with accurate 2026 rates can save you time, money, and stress—whether you’re filing your personal return or managing business taxes in the Garden State.