Taxes in Newark, New Jersey
Complete tax guide for Newark, NJ. State income tax up to 10.75%, 2.81% property tax, 6.63% sales tax. Calculate your total tax burden.
State Income Tax
10.75%
New Jersey
Property Tax
2.81%
Effective rate
Sales Tax
6.63%
Combined rate
Tax Burden
Very High
Newark, NJ Tax Overview
Very high property taxes typical of NJ; some Urban Enterprise Zone areas have reduced 3.31% sales tax
Population
311,549
Median Income
$38,854
Cost of Living
118.3 (100 = avg)
State Income Tax
10.75%
Median Home Price
$335,000
Newark Tax Calculator
Pre-filled with Newark median: $38,854
Total Tax Burden in Newark
$9,773
Take-Home: $29,081 · Effective Rate: 25.15%
Federal Tax
$2,624
6.75% eff.
NJ State
$4,177
10.75% eff.
FICA
$2,972
7.65% eff.
Take-Home
$29,081
74.85% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $38,854.00 | $3,237.83 |
| Federal Income Tax | -$2,623.98 | -$218.67 |
| New Jersey State Tax | -$4,176.81 | -$348.07 |
| Social Security (6.2%) | -$2,408.95 | -$200.75 |
| Medicare (1.45%) | -$563.38 | -$46.95 |
| Take-Home Pay | $29,080.88 | $2,423.41 |
Property Tax in Newark
Median Home
$335,000
Annual Tax
$9,414
Monthly Tax
$784
Effective Rate
2.81%
Sales Tax in Newark
Combined Rate
6.63%
State Portion
~4.1%
Local Portion
~2.5%
The combined sales tax rate in Newark is 6.63%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.63 in sales tax.
Tax Burden Comparison
| Tax Type | Newark | New Jersey Avg | National Avg |
|---|---|---|---|
| Income Tax | 10.75% | 10.75% | 4.6% |
| Property Tax | 2.81% | ~2.81% | 1.1% |
| Sales Tax | 6.63% | ~6.63% | 7.12% |
| Overall Burden | Very High | — | Moderate |
Tax Saving Tips for Newark Residents
- New Jersey's income tax rate of 10.75% 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 Newark (2.81%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- 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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Very HighCalculate Your Full New Jersey Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Newark, NJ?
Newark, New Jersey has a state income tax rate up to 10.75%. The property tax rate is 2.81% and the combined sales tax rate is 6.63%. Very high property taxes typical of NJ; some Urban Enterprise Zone areas have reduced 3.31% sales tax
How much is property tax in Newark?
The effective property tax rate in Newark is 2.81%. On the median home price of $335,000, this equals approximately $9,414 per year or $784 per month. This is above the national average of 1.1%.
What is the sales tax rate in Newark?
The combined sales tax rate in Newark is 6.63%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Newark's tax burden compare to other cities?
Newark has a very high overall tax burden. The effective total tax rate for a median-income household is approximately 38%. The combination of 10.75% state income tax, 2.81% property tax, and 6.63% sales tax determines the total burden. Cost of living index is 118.3 (100 = national average).
Are there any local taxes in Newark?
Newark does not impose a separate local or city income tax. Residents pay the state income tax of 10.75%, federal income tax, and FICA (Social Security and Medicare). Very high property taxes typical of NJ; some Urban Enterprise Zone areas have reduced 3.31% sales tax