Filing New Jersey State Taxes

The personal income tax in the state of New Jersey ranges from 1.4% to 8.97%, evaluated over progressive income brackets.

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Personal Income Tax

Single and married taxpayers filing separate returns face six rates in New Jersey.

• You need to pay 1.4% on the first $20,000 of taxable income.
• You need to pay 1.75% on taxable income between $20,001 and $35,000.
• You need to pay 3.5% on taxable income between $35,001 and $40,000.
• You need to pay 5.525% on taxable income between $40,001 and $75,000.
• You need to pay 6.37% on taxable income between $75,001 and $500,000.
• You need to pay 8.97% on taxable income of more than $500,001.

Sales Tax

The sales tax rate in the state of New Jersey is 7%. In addition, all retail sales are taxable in New Jersey. However, a few exemptions are given on drugs, food items, footwear and clothing.

Personal and Real Estate Property Tax

All tangible personal property and real estate property situated in the state of New Jersey is subject to property tax. The property valuation is done on the basis of fair market value. Individual property taxes are evaluated by multiplying general tax rate by the property value. It is the job of collectors and assessors of the respective townships and cities to collect and assess the real property taxes. All this is subject to review by the county boards of taxation. The administration of personal property tax is implemented by the state. You can pay property tax in the state of New Jersey in four installments in the months of February, May, August and November.

Inheritance and Estate Tax

There is a provision for inheritance tax in the state of New Jersey. New Jersey's Domestic Partnership Act is commonly used for transfer inheritance tax purposes. The most important thing about this act is that it exempts all transfers made by will or contract to a surviving domestic partner. Apart from inheritance tax, you also need to pay a separate estate tax in New Jersey.

New Jersey Tax Facts

As a resident of New Jersey, you can file and pay your taxes online. By just going to New Jersey Department of Taxation e-file page, you can also check your refund status.