New Jersey law

Tax Laws in New Jersey.

New Jersey imposes a graduated individual income tax with a top rate of 10.75% (on income over $1 million) — among the highest in the U.S. Sales tax is 6.625%. New Jersey's Corporation Business Tax is 9% on income over $100K (with temporary 2.5% surtax on corporations with NJ net income over $10M, effective through 2028). Property taxes are the highest in the U.S. by effective rate. New Jersey eliminated its Estate Tax in 2018 but retains an Inheritance Tax. New Jersey has an uncommon "exit tax" on sales of real property by nonresidents.

Last verified: 2026-04-17

State law

Key New Jersey Statutes

Gross Income TaxN.J.S.A. 54A:1-1 et seq.

Graduated rates from 1.4% (up to $20,000) to 10.75% (over $1 million). Among the highest state-income-tax burdens in the U.S.

Sales and Use TaxN.J.S.A. 54:32B-1 et seq.

6.625% state sales tax. No local sales tax (except in 32 designated Urban Enterprise Zones with reduced 3.3125% rate, which was extended through 2024 and is subject to ongoing review).

Corporation Business TaxN.J.S.A. 54:10A-1 et seq.

6.5% on NJ net income ≤ $50K, 7.5% on $50K-$100K, 9% over $100K. Temporary 2.5% surtax on corporations with NJ net income over $10M (through 2028 under Corporate Transit Fee).

Inheritance TaxN.J.S.A. 54:34-1 et seq.

Retained after 2018 Estate Tax repeal. Class A (spouse/children/parents) exempt; Class C (siblings) 11%-16%; Class D (others) 15%-16%.

Realty Transfer Fee and Mansion TaxN.J.S.A. 46:15-5, 46:15-7.2

RTF ranges from 0.4% to 1.21%. Mansion Tax of 1% (paid by buyer) on residential sales over $1 million.

Exit Tax (Nonresident)N.J.S.A. 54A:8-9

Nonresident sellers of New Jersey real property must prepay estimated tax (typically 10.75% of gain) or 2% of total consideration, whichever is greater, at closing.

Property TaxN.J.S.A. Title 54

Highest effective property tax rate in the U.S. (averaging ~2.2%). Administered by municipalities with county and state oversight.

State law

Official Sources

NJ Division of Taxation IRS

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in New Jersey.

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Tax Laws in New Jersey.

Key New Jersey Statutes

Official Sources

Not Legal Advice

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