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What are New Jersey's income tax rates?

NJ rates for single filers: 1.4% ($0–$20K), 1.75% ($20K–$35K), 3.5% ($35K–$40K), 5.525% ($40K–$75K), 6.37% ($75K–$500K), 8.97% ($500K–$1M), 10.75% (above $1M). The 10.75% top rate (added in 2020) is the second-highest state rate in the US after California's 13.3%.

What are NJ SDI, FLI, and SUI?

State Disability Insurance (SDI, 0.26%): funds temporary disability benefits. Family Leave Insurance (FLI, 0.09%): funds NJ Paid Family Leave (12 weeks at 85% of wages, up to $1,055/week). State Unemployment Insurance employee contribution (0.425%): funds unemployment benefits. All have annual wage base caps.

Does New Jersey tax retirement income?

NJ taxes IRA distributions, 401k withdrawals, and pension income — but offers an exclusion for taxpayers 62+ with income under $150,000 (single) or $200,000 (MFJ). The exclusion is up to $75,000 for single and $100,000 for MFJ filers. Social Security is exempt from NJ income tax entirely.

Is New Jersey a high-tax state?

Yes — NJ has the highest property taxes in the US (~2.49% effective rate), the second-highest top income tax rate (10.75%), and relatively high sales tax (6.625%). The combined burden is significant. Many high-income NJ residents establish domicile in Florida or other low-tax states to reduce their tax exposure — though NJ aggressively audits these moves.