New Jersey Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for New Jersey. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
Income Tax
New Jersey has a progressive income tax with 7 brackets. The top rate of 10.75% applies to income over $1 million. NJ does not have local income taxes but has very high property taxes (highest average in the nation).
| Taxable Income | Rate |
|---|---|
| $0 - $20,000 | 1.4% |
| $20,000 - $35,000 | 1.75% |
| $35,000 - $40,000 | 3.5% |
| $40,000 - $75,000 | 5.525% |
| $75,000 - $500,000 | 6.37% |
| $500,000 - $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
Sales Tax
Clothing is fully exempt. Unprepared food is exempt. Prescription drugs are exempt.
New Jersey's top rate of 10.75% is among the highest nationally. Combined with the nation's highest average property taxes (~2.23%), the overall tax burden is significant.
What are New Jersey's income tax rates?
New Jersey has 7 brackets from 1.4% to 10.75%. The top rate applies to income over $1 million. Rates start very low, making it favorable for moderate earners.
What is the sales tax in New Jersey?
New Jersey's sales tax is 6.625%. There are no local sales taxes, so the rate is uniform statewide. Urban Enterprise Zones have a reduced 3.3125% rate.
Is clothing taxed in New Jersey?
No. New Jersey is one of a few states that fully exempts clothing from sales tax, regardless of price.