Retirement Tax Breakdown for New Jersey Residents

Complete New Jersey retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #50 of 51.

State Income Tax
10.75% top rate

7 bracket(s)

Capital Gains Rate
10.75%

Treated as ordinary income

Property Tax Rate
2.23%

Lowest

Sales Tax Rate
6.6%

State 6.625% + local avg 6.6%

Less Tax-Friendly State

New Jersey has the highest property taxes in the nation and high income tax rates. Social Security is exempt below certain income thresholds, but pensions and retirement accounts are taxed.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

None

Tax Comparison Summary

State income tax10.75% top
Capital gains10.75%
Property tax2.23% effective
Sales tax6.6% combined
Overall retiree rank#50 of 51

New Jersey Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
1.4%$0$20,000
1.75%$20,000$35,000
3.5%$35,000$40,000
5.525%$40,000$75,000
6.37%$75,000$500,000
8.97%$500,000$1,000,000
10.75%$1,000,000No limit

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