Taxation in New Jersey comes in several forms. Residents are most directly affected by New Jersey's income tax, sales tax and property tax. However, the vast majority of property tax is levied by counties and local municipalities. New Jersey also taxes corporate income.
Income tax
The tax table below will show in detail the New Jersey state income tax rates by income tax bracket(s). There are 6 income tax brackets for New Jersey.
Tax brackets for individuals are provided below:
For earnings between $0 and $20,000, the tax rate on every dollar of income earned is 1.4%.
For earnings between $20,001 and $35,000, the tax rate on every dollar of income earned is 1.75%.
For earnings between $35,001 and $40,000, the tax rate on every dollar of income earned is 3.5%.
For earnings between $40,001 and $75,000, the tax rate on every dollar of income earned is 5.525%.
For earnings between $75,001 and $500,000, the tax rate on every dollar of income earned is 6.37%.
For earnings of $500,001 and over, the tax rate on every dollar of income earned is 8.97%.
To give an example, if you file individually and your earned income is $50,000 your tax will be calculated the following way: ($20,000 (first bracket) x 1.4%) + ($15,000 (second bracket) x 1.75%) + ($5,000 (third bracket) x 3.5%) + ($10,000 (fourth bracket) x 5.525%) = $280 + $262.50 + $175 + $552.50 = $1,270, for an overall rate of 2.54% and a marginal rate of 5.525%.
Sales tax
New Jersey has a 7% state sales tax. All revenues are deposited in the State Treasury for general State use, nothing goes to the towns.
In Urban Enterprise Zones, the State sales tax is cut in half to encourage economic development, resulting in an effective tax rate of 3.5%. A full list of Urban Enterprise Zones is available on the State of New Jersey Web site. [1]
New Jersey does not charge sales tax on unprepared food, household paper products, medicine, and clothing.
New Jersey does not charge sales tax on gasoline, but gasoline is subject to a $0.145/gallon excise tax.
Sales of clothing and accessories that are made of fur from the hide or pelt of an animal that is valued at $500 or more are subject to a 6% Fur Clothing Gross Receipts Tax.
Property tax
New Jersey has the highest median property tax in the United States, at $5,773.[2] Former Governor Jon Corzine and Bergen County executive Dennis McNerney have suggested that smaller municipalities merge into larger municipalities to share services and reduce overhead.
See also
- Law of New Jersey
References
http://www.state.nj.us/treasury/taxation/su_over.shtml
External links
- State of New Jersey Division of Taxation
- The Tax Foundation research on New Jersey
Interesting Informations
Looking products related to this topic, find out at Amazon.com
Source of the article : here
EmoticonEmoticon