Taxes in Lakewood, New Jersey
Complete tax guide for Lakewood, NJ. State income tax up to 8.97%, 2.18% property tax, 8.43% sales tax. Calculate your total tax burden.
State Income Tax
8.97%
New Jersey
Property Tax
2.18%
Effective rate
Sales Tax
8.43%
Combined rate
Tax Burden
Very High
Lakewood, NJ Tax Overview
Population
106,300
Median Income
$99,700
Cost of Living
128.8 (100 = avg)
State Income Tax
8.97%
Median Home Price
$504,000
Lakewood Tax Calculator
Pre-filled with Lakewood median: $99,700
Total Tax Burden in Lakewood
$30,118
Take-Home: $69,582 · Effective Rate: 30.21%
Federal Tax
$13,548
13.59% eff.
NJ State
$8,943
8.97% eff.
FICA
$7,627
7.65% eff.
Take-Home
$69,582
69.79% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $99,700.00 | $8,308.33 |
| Federal Income Tax | -$13,548.00 | -$1,129.00 |
| New Jersey State Tax | -$8,943.09 | -$745.26 |
| Social Security (6.2%) | -$6,181.40 | -$515.12 |
| Medicare (1.45%) | -$1,445.65 | -$120.47 |
| Take-Home Pay | $69,581.86 | $5,798.49 |
Property Tax in Lakewood
Median Home
$504,000
Annual Tax
$10,987
Monthly Tax
$916
Effective Rate
2.18%
Sales Tax in Lakewood
Combined Rate
8.43%
State Portion
~5.9%
Local Portion
~2.5%
The combined sales tax rate in Lakewood is 8.43%, which is above the national average of 7.12%. On a $100 purchase, you would pay $8.43 in sales tax.
Tax Burden Comparison
| Tax Type | Lakewood | New Jersey Avg | National Avg |
|---|---|---|---|
| Income Tax | 8.97% | 8.97% | 4.6% |
| Property Tax | 2.18% | ~2.18% | 1.1% |
| Sales Tax | 8.43% | ~8.43% | 7.12% |
| Overall Burden | Very High | — | Moderate |
Tax Saving Tips for Lakewood Residents
- New Jersey's income tax rate of 8.97% is above average. Maximize pre-tax retirement contributions (401k up to $23,500, IRA up to $7,000) to reduce both federal and state taxable income.
- Property tax in Lakewood (2.18%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- The combined sales tax rate of 8.43% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
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See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Lakewood, NJ?
Lakewood, New Jersey has a state income tax rate up to 8.97%. The property tax rate is 2.18% and the combined sales tax rate is 8.43%.
How much is property tax in Lakewood?
The effective property tax rate in Lakewood is 2.18%. On the median home price of $504,000, this equals approximately $10,987 per year or $916 per month. This is above the national average of 1.1%.
What is the sales tax rate in Lakewood?
The combined sales tax rate in Lakewood is 8.43%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Lakewood's tax burden compare to other cities?
Lakewood has a very high overall tax burden. The effective total tax rate for a median-income household is approximately 37.8%. The combination of 8.97% state income tax, 2.18% property tax, and 8.43% sales tax determines the total burden. Cost of living index is 128.8 (100 = national average).
Are there any local taxes in Lakewood?
Lakewood does not impose a separate local or city income tax. Residents pay the state income tax of 8.97%, federal income tax, and FICA (Social Security and Medicare).