How Does New Jersey Rate for Income Taxes?

Date: May 02, 2017

Related Content: Analysis Economy New Jersey

You already know that New Jersey has the highest property taxes in the nation, and the state doesn’t stack up well on income taxes either. NJ.com reports that the gross income tax is the biggest revenue source, which is projected to total about $14 billion in 2017. The top 1 percent of income tax filers—including small businesses who pay their business taxes at the individual rate as pass-through entities—pay roughly 35 percent of that.

Overall, New Jersey was ranked as the 7th highest tax burden in the U.S., according to data from fiscal year 2015 and Tax Foundation analysis. The rates are graduated:

  • 1.4 percent (income up to $20,000)
  • 1.75 percent ($20,000 to $35,000)
  • 3.5 percent ($35,000 to $40,000)
  • 5.525 percent ($40,000 to $75,000)
  • 6.37 percent ($75,000-$500,000)
  • 8.97 percent (over $500,000)

Rates are not currently adjusted for inflation, which would prevent tax bills from growing faster than real wages. And unfortunately, a study from small business lender Fundera found New Jersey’s tax status even worse: No. 1 Worst State for Small Business Taxes.

 

Related Content: Analysis | Economy | New Jersey

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is America's leading small business association, promoting and protecting the right of our members to own, operate, and grow their business

Find out more about
NFIB Membership

Or call us today

1-800-634-2669

News

State Issues


Choose Your State

Foundations

YEF Foundation Research Center Legal Foundation

Member Benefits