New Jersey’s tax system ranks 50th overall on our 2023 State Business Tax Climate Index.Įach state’s tax code is a multifaceted system with many moving parts, and New Jersey is no exception. The first step towards understanding New Jersey’s tax code is knowing the basics. NJ: The Dumont Institute of Public Policy Research, 1998), and Robert W. New Jersey has a 6.625 percent state sales tax rate, a max local sales tax rate of 3.313 percent, and an average combined state and local sales tax rate of 6.60 percent. And those numbers don’t even account for online sports betting, which has only been legal since 2018 but would add another 3 billion in revenue and 400 million in taxes to. New Jersey has a 6.5 percent to 11.5 percent corporate income tax rate. To date, online gambling in NJ has generated more than 7 billion in lifetime revenue, while the state of NJ has collected over 1 billion in taxes from those proceeds. There is also a jurisdiction that collects local income taxes. How does New Jersey’s tax code compare? New Jersey has a graduated individual income tax, with rates ranging from 1.40 percent to 10.75 percent. New Jersey Tax Rates, Collections, and Burdens
