- Taxation in New Jersey
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Taxation in New Jersey comes in several forms. Residents are most directly affected by New Jersey's income tax, sales tax and property tax. However, the vast majority of property tax is levied by counties and local municipalities. New Jersey also taxes corporate income.
Contents
Income tax
The tax table below will show in detail the New Jersey state income tax rates by income tax bracket(s). There are 6 income tax brackets for New Jersey.
If your income range is between $0 and $20,000, your tax rate on every dollar of income earned is 1.4%.
If your income range is between $20,001 and $35,000, your tax rate on every dollar of income earned is 1.75%.
If your income range is between $35,001 and $40,000, your tax rate on every dollar of income earned is 3.5%.
If your income range is between $40,001 and $75,000, your tax rate on every dollar of income earned is 5.525%.
If your income range is between $75,001 and $500,000, your tax rate on every dollar of income earned is 6.37%.
If your income range is $500,001 and over, your tax rate on every dollar of income earned is 8.97%.
Sales tax
New Jersey has a 7% state sales tax. This is split as 3.5% for the State, and 3.5% for the municipality. Not all of the sales tax goes to state. In Urban Enterprise Zones, the State portion of the sales tax is waived to encourage economic development, resulting in an effective tax rate of 3.5%. A full list of Urban Enterprise Zones is available on the State of New Jersey Web site. [1]
New Jersey does not charge sales tax on unprepared food, household paper products, medicine, and clothing.
New Jersey does not charge sales tax on gasoline, but gasoline is subject to a $0.145/gallon excise tax.
Sales of clothing and accessories that are made of fur from the hide or pelt of an animal that is valued at $500 or more are subject to a 6% Fur Clothing Gross Receipts Tax.
Property tax
New Jersey has the highest median property tax in the United States, at $5,773.[2] Governor Jon Corzine and Bergen County executive Dennis McNerney have suggested that smaller municipalities merge into larger municipalities to share services and reduce overhead.[3][4]
References
External links
Categories:- Taxation in New Jersey
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