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New Jerseyincome tax up to 10.75%, highest property tax, median home $500K

D+6  ·  High tax burden  ·  COL index 121

C

10.75%

Income Tax

213

Violent Crime / 100K

79

Life Expectancy

$500K

Median Home

$1,800

Childcare / Mo

New Jersey in plain English

Worth knowing before you move to New Jersey

New Jersey has the highest property taxes in the nation, averaging more than $9,000 a year per home, and a graduated income tax reaching 10.75% above $1 million. It repealed its estate tax in 2018 but kept an inheritance tax on non-family heirs. Social Security is not taxed, and retirement income up to $100,000 is excluded for many couples. The whole state is within commuting range of New York or Philadelphia.

What New Jersey taxes, and what it doesn't

New Jersey levies a graduated income tax that tops out at 10.75%. A household earning $75,000 pays an effective 3.5%, about $2,651 a year; at $150,000 the effective rate is 5.0%. Among the 41 states that tax income, New Jersey has the 11th lowest effective rate at $100,000 of income.

Property tax runs 2.13% of home value a year, roughly $10,650 on the state's median home of $500K. The national effective rate is about 1.10%, and New Jersey has the highest rate of the 50 states.

Combined state and local sales tax averages 6.60%, the 21st lowest in the country (the state portion is 6.625%).

For retirees: Social Security benefits are not taxed, pension income is partly exempt, and there is an inheritance tax on some heirs.

Capital gains are taxed as ordinary income.

Housing and the cost of living in New Jersey

New Jersey's cost of living index is 121, where 100 is the national average; that is the 6th most expensive of the 50 states.

The median home costs $500K, 65% above the national figure and the 7th highest among the states. A two-bedroom rents for about $2,200 a month.

Carrying costs matter as much as the price: home insurance averages $1,400 a year, flood coverage adds about $1,100 where it is needed, car insurance runs $2,150.

Budget $155 a month for electricity and gas, $640 a month in groceries for two, $1,800 a month for full-time infant care.

Safety, health and schools

Violent crime is 213 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, below the median state (387); New Jersey is the 6th safest of the 50 by that measure. Property crime is 1,368 per 100,000.

Life expectancy is 79 years (County Health Rankings 2024). 6.8% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks New Jersey's health system 19th of 50.

Education Week's 2023 Quality Counts report ranks K-12 schools 2nd in the country.

Politics, guns and social policy

Politically, New Jersey is a competitive state that went to Harris by 6 points in 2024.

On guns, concealed-carry permits are may-issue, at the discretion of local authorities, a permit is required to buy a handgun, and Giffords grades the state's gun laws A.

Abortion is protected by state law. Marijuana is legal for adults. New Jersey is not a right-to-work state, and the minimum wage is $15.13 an hour.

Climate, risk and getting around

Natural disaster risk is moderate. The main hazards are hurricane, flood, nor-easter. Annual average air quality index is 35 (under 50 is good).

New Jersey has a major hub airport, with about 120 nonstop destinations from its busiest airport.

Written from the figures on this page. Rankings compare the 50 states. Sources and years are listed with each figure below.

State Profile

72/100
255075100TAXES50SAFETY84HEALTH63SCHOOLS98AFFORDABLE61LONGEVITY75

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Taxes

Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026

Income Tax

10.75% top

Property Tax

~$10,650/yr on median home

2.13% / yr

Sales Tax

6.6% avg

Social Security

Exempt

Pension / IRA

Partial

Estate Tax

No estate tax; inheritance tax on non-spouse/child heirs

None

Inheritance Tax

⚠ Your heirs pay this tax on what you leave them — even if you have no estate tax. PA charges 4.5% to children from dollar one.

Yes

Capital Gains

Taxed as income

Housing & Cost of Living

Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)

Price Level vs US (BEA)

Above US average (100)

108.8

Mortgages 90+ Days Late

FHFA, latest quarter

1.0%

Cost of Living Index

National avg = 100

121

Median Home Price

$500,000

Median Rent (2BR)

$2,200/mo

Home Insurance

Near national avg (~$1,900/yr)

$1,400/yr

Flood Insurance

$1,100/yr

Homestead Exemption

Home equity protected from creditors

Unlimited

Asset Protection

Strong

Homes in HOAs

Moderate HOA presence (Census ACS 2024)

20.5%

Zoning Restrictiveness

Among the most restrictive zoning in the nation (Wharton WRLURI 2018)

Very Restrictive

Short-Term Rentals (Airbnb)

No statewide STR framework; local control.

Local Control

Crime & Safety

Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024

Violent Crime Rate

Near national avg

213 / 100K

Property Crime Rate

Below national avg (~2,100)

1,368 / 100K

Traffic Fatality Rate

Among the safest

5.9 / 100K

Registered Sex Offenders

Among the lowest registry rates (SafeHome 2025)

51 / 100K

Homeless Population

Moderate homelessness rate — 14% unsheltered (HUD 2024 PIT)

134 / 100K

Healthcare

Sources: Commonwealth Fund 2023 · KFF · CDC

State Healthcare Rank

#19 of 50

Life Expectancy

Above national avg (76.4)

79 yrs

Medicaid Expansion

Expanded

Uninsured Rate

6.8%

Education

Sources: Education Week 2023 · NCES · state statutes (school choice)

College Completion Rate

College Scorecard, in-state institutions (mean)

57%

Avg College Cost of Attendance

College Scorecard 2024

$30,631/yr

K-12 Quality Rank

Top 10 nationally

#2 of 50

School Choice / Vouchers

Not Available

HS Graduation Rate

Above national avg (~87%)

91.2%

Pupil-Teacher Ratio

Below national avg (~16)

11.9 students/teacher

Childcare

Sources: Child Care Aware · Census ACS 2022

Avg Infant Care (Full-Time)

$1,800/mo

Utilities & Daily Costs

Sources: EIA (electricity, weekly gas) · USDA · eGRID 2022

Grid Carbon Intensity

Cleaner than US average (~820)

487 lb CO₂/MWh

Avg Monthly Energy Bill

$155/mo

Electricity Rate

Near national avg (13¢)

16.0¢/kWh

Energy Mix

4% renewable · ☀ 2% solar · 💨 0% wind

Avg Monthly Groceries

2-person household, moderate spending

$640/mo

Road Quality Rank

#44 of 50

Airports & Travel

Sources: FAA · BTS

Nonstop Destinations

From state's primary airport

120+ routes

Major Hub Airport

Top-25 US airport by passengers

Yes

Culture & Lifestyle

Sources: Census CBP · Brewers Association 2024 · Pollstar · AANR/TNS · AGA 2024

Urban Population

Highly urban — big city feel

95% urban

Restaurant Density

520/100K

Religious Congregations

165/100K

Pro Sports Teams

NFL + NBA + MLB + NHL + MLS

3 teams

Major Venues

Stadiums, arenas, amphitheaters (10K+ capacity)

8 venues

Craft Breweries

1.8/100K residents — Growing

165 breweries

Craft Distilleries

45 distilleries

Live Music

Asbury Park indie heritage (Springsteen); Stone Pony; proximity to NYC inflates show options

Decent

Transportation

Sources: NHTSA FARS · FCC · insurance rate surveys 2024 · IIHS helmet laws 2026

Car Insurance (Avg Annual)

$2,150

Traffic Fatality Rate

5.9 / 100K

Broadband Access

95% of households

Work From Home

State residents who primarily work from home (ACS)

589,957 workers

Social & Legal

Sources: Guttmacher · KFF · NCSL · state statutes 2026

Formal Volunteering Rate

AmeriCorps / Census CPS 2023 (US ~28%)

25.7%

Votes in Local Elections

AmeriCorps / Census CPS 2023

56.6%

Abortion Access

Legal with no gestational limit; strong state protections

Protected

LGBTQ+ Protections

Comprehensive

Marijuana

Recreational

Minimum Wage

$15.13/hr

Right to Work

No

Sports Betting

Legal

Casino Gambling

Commercial casinos

Online Gambling

Legal

State Lottery

Atlantic City casino market. Online casino gambling and poker legal — largest regulated online gaming market after NV. Sports betting pioneer (2018).

Yes

Age of Consent

16

Sex Education

Sex ed required by state

Comprehensive

Medically Accurate Required

Yes

Nude Beaches & Naturist Clubs

Gunnison Beach (Sandy Hook) · Highland Fling Resort · New Jersey Naturist Society

Nude beach

Environment & Climate

Sources: EPA AQI · NOAA · FEMA National Risk Index

Air Quality (Annual AQI)

Near national avg

35

Natural Disaster Risk

Moderate

Primary Hazards

hurricanefloodnor-easter

Politics & Gun Laws

Sources: OpenElections 2024 · Giffords 2025 · state statutes

2024 Presidential Vote

D+6

Gun Laws

Gun ControlA
2A LibertyF

Carry Permit

May-issue

Purchase Permit Required

Yes

Carry in Bars

Prohibited

Carry in Restaurants

Prohibited

Carry in Places of Worship

Sensitive-places law covers alcohol venues and worship; 3d Cir. largely upheld 2025, en banc pending.

Prohibited

Gambling

Legal

Jobs & Economy

Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS

Job Openings Rate (JOLTS)

Near US average (~4.5%)

4.5%

Quits Rate (JOLTS)

Workers quit when they can find better; BLS 2024 average

1.6%

Job Market

+1.1% job growth · 4.5% unemployment

Moderate

Top Industries

PharmaFinanceHealthcare

Tech Jobs

Strong tech presence

#8 of 50

Healthcare Jobs

#9 of 50

Remote Work

High remote work culture

29% of workers

Median Household Income

$101,828

Union Membership

Above-average union presence (BLS 2025)

14.7% of workers

Business Climate

Sources: Tax Foundation · state filings

Corporate Income Tax

High corporate rate — plan entity structure carefully

9%

LLC Formation Fee

$125 one-time

LLC Annual Fee

$75/yr

Business Climate Rank

Bottom-10 nationally

#50 of 50

Daily Life

Sources: American Pyrotechnics Association · state statutes 2026 · IIHS

Gas Price (Regular)

Below avg (-0.12 vs national avg)

$3.18/gal

Consumer Fireworks

Only licensed professionals may use fireworks; consumer fireworks illegal

Banned

Motorcycle Helmet Law

Required for all riders (IIHS 2026)

All Riders

Weather & Natural Risks

Sources: NOAA · NWS Storm Prediction Center · FEMA NRI

Winter Severity

Avg January high: 38°F

Moderate

Summer Heat

Moderate summers

87°F avg July

Annual Rainfall

47" / yr

Tornado Risk

Very Low

Hurricane Risk

Low

Wildfire Risk

Low

Flood Risk

Moderate

Natural Hazards

Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023

27LOW danger
Copperhead presenceEEE and West Nile zoneHurricane coastal risk

Venomous Snakes

Low

Spider Hazard

Low

Hurricane Risk

Moderate

Tornado Risk

Low

Wildfire Risk

Low

Earthquake Risk

Low

Danger score is a composite index. Methodology ↗

Veteran Benefits

Sources: VA.gov · Military.com state guide · Tax Foundation

Veteran-Friendly Score

5.8% of state population are veterans

78/100

Property Tax Exemption

100% disabled: full property tax exempt

Partial

Military Retirement Pay

Tax Exempt

Active Duty Pay

Tax Exempt

VA Facilities Access

Good

Notable Benefits

Military retirement fully exempt since 2022

Explore New Jersey counties

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What Residents Say

Realistic budget in NJ? : r/newjersey

Do you have atleast 3-6 month your expenses in savings? Meaning $10-$20k in your bank. How much are you putting into a tax deferred account ( ......

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Is New Jersey as nice as they say it is?

I've heard good things about NJ, namely its location, underrated natural beauty, etc. Is it as nice as they say?...

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How does everyone afford it : r/SouthJersey

It's baffling to me. FYI my mortgage and property taxes are only 1550 a month so I'm very fortunate in that....

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Moving to NJ after having lived in NYC for.2 years. - Hoboken

I am moving back to NYC.NJ area after almost 2 years. I was taking care of some chronically sick family member back in my home country....

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Moving to NJ : r/newjersey

It's very expensive to live here and not worth it for what you get on an individual level. Although there are some really nice places to ......

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NJ Ranked #1 for Highest Avg Lifetime Taxes Per Resident ...

Per WSJ: “An average New Jersey resident will pay an estimated $931,698 in taxes for his lifetime of toil, according to a new study from the ......

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How much will be the cost of living in New Jersey?

I'm a prospective student considering attending Montclair State University, and I'm curious about the part-time job opportunities available in the area, ......

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If you want to leave NJ...now is a great time to sell. Your ...

Florida overall tax burden is about 7% of income and New Jersey is 10%. so if you make $100,000 you'd save a whopping $3,000 by moving to ......

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What's so good/bad about New Jersey? : r/newjersey

High taxes. High cost of living. It's becoming like California, whatever that means....

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Thinking about moving to Jersey. : r/newjersey

Hey everyone, my husband and I are thinking of moving to NJ, and I wanted some advice on areas to live in near Bloomfield....

reddit.com ↗

New Jersey will change its laws. We'll email you when it does.

One email when New Jersey changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.

Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI Crime Data Explorer 2023. Healthcare: Commonwealth Fund 2023; life expectancy from County Health Rankings 2024. Education: Education Week 2023. Housing: Zillow monthly index and Census ACS 2022. Insurance: rate surveys 2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.

Your Priorities

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Quick Profiles

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Annual Income

$150K

Affects effective income tax rate

$0$500K$5M+

Retirement Savings

$0

Affects pension and SS tax burden

None$500K$10M+

Social Security

None

Annual Social Security benefit

None$150K/yr

My Property Is Worth

$400K

Affects property tax burden

Tax burden ↓$1M$50M+

Home Buying Budget

$400K

Compared to state median home price

Hard to find$250K$5M+

Monthly Rent Budget

Don't care

Compared to state median 2BR rent

Don't care$10K/mo

Job Market

Don't care

State unemployment and job growth

Don't careHot market

Airport Access

Don't care

Direct flight destinations from state hubs

Don't careMust have hub

City vs Country

Mid-size city

% urban population

Deep countryBig city

Sunshine

Don't care

Annual sunny days per state

Don't careMax sunshine

Food Scene

Don't care

Restaurants per 100K residents

Don't careWorld-class

Political Preference

Neutral

State's political lean

LiberalConservative

Gun Laws

Neutral

State gun law grade (Giffords)

Gun Control2A Freedom

Abortion Access

Neutral

State abortion access policy

Pro-ChoiceNeutralPro-Life

Community

None

Congregations per 100K residents

AvoidDon't careSeek

Sports & Entertainment

Don't care

Pro sports teams and major venues

Don't careMust have pro teams

Cannabis Laws

Neutral

State cannabis legality

Prefer LegalNeutralPrefer Prohibition

Retiree Community

Neutral

% population 65+ (Census)

Young areaRetirement-heavy

Dating Market

Neutral

% adults never-married (Census)

Singles sceneFamily community

Safety / Low Crime

Don't care

Violent crime rate per 100K (FBI)

Don't careVery safe

School Quality

Don't care

K-12 rank (Education Week)

Don't careTop-ranked

Healthcare Access

Don't care

Healthcare system rank (Commonwealth Fund)

Don't careTop-ranked

Childcare Affordability

Don't care

Cost of living proxy for childcare affordability

Don't careMust be affordable