New Jersey Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for New Jersey in 2026, with political context.
No
No Income Tax
10.75% (top)
Income Tax Rate
#3
Tax Burden Rank (1=highest)
#51
Property Tax Rank (1=highest)
Tax Policy Overview
New Jersey has the highest property taxes in the nation and very high income and business taxes, creating the 3rd highest overall tax burden. The state faces significant wealthy out-migration to Florida and other lower-tax states. NJ business taxes were raised temporarily and have remained high.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 10.75% (top) |
| No Income Tax | No |
| Sales Tax | 6.625% |
| No Sales Tax | No |
| Corporate Tax | 9.0% |
| Property Tax Rank | #51 nationally (1=highest) |
| Overall Tax Burden Rank | #3 nationally (1=highest) |
Political Context
New Jersey high taxes are a defining political issue. Governor Murphy (D) raised taxes on millionaires. Republicans argue this accelerates out-migration of the wealthy and businesses. The state’s proximity to New York City means many high earners live in NJ but work in NYC or CT, creating interstate tax competition.