Taxes in Parsippany-Troy Hills, New Jersey
Complete tax guide for Parsippany-Troy Hills, NJ. State income tax up to 8.97%, 2.08% property tax, 6.69% sales tax. Calculate your total tax burden.
State Income Tax
8.97%
New Jersey
Property Tax
2.08%
Effective rate
Sales Tax
6.69%
Combined rate
Tax Burden
Very High
Parsippany-Troy Hills, NJ Tax Overview
Population
56,000
Median Income
$77,500
Cost of Living
115.5 (100 = avg)
State Income Tax
8.97%
Median Home Price
$414,000
Parsippany-Troy Hills Tax Calculator
Pre-filled with Parsippany-Troy Hills median: $77,500
Total Tax Burden in Parsippany-Troy Hills
$21,545
Take-Home: $55,956 · Effective Rate: 27.80%
Federal Tax
$8,664
11.18% eff.
NJ State
$6,952
8.97% eff.
FICA
$5,929
7.65% eff.
Take-Home
$55,956
72.20% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $77,500.00 | $6,458.33 |
| Federal Income Tax | -$8,664.00 | -$722.00 |
| New Jersey State Tax | -$6,951.75 | -$579.31 |
| Social Security (6.2%) | -$4,805.00 | -$400.42 |
| Medicare (1.45%) | -$1,123.75 | -$93.65 |
| Take-Home Pay | $55,955.50 | $4,662.96 |
Property Tax in Parsippany-Troy Hills
Median Home
$414,000
Annual Tax
$8,611
Monthly Tax
$718
Effective Rate
2.08%
Sales Tax in Parsippany-Troy Hills
Combined Rate
6.69%
State Portion
~4.2%
Local Portion
~2.5%
The combined sales tax rate in Parsippany-Troy Hills is 6.69%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.69 in sales tax.
Tax Burden Comparison
| Tax Type | Parsippany-Troy Hills | New Jersey Avg | National Avg |
|---|---|---|---|
| Income Tax | 8.97% | 8.97% | 4.6% |
| Property Tax | 2.08% | ~2.08% | 1.1% |
| Sales Tax | 6.69% | ~6.69% | 7.12% |
| Overall Burden | Very High | — | Moderate |
Tax Saving Tips for Parsippany-Troy Hills 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 Parsippany-Troy Hills (2.08%) 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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See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Parsippany-Troy Hills, NJ?
Parsippany-Troy Hills, New Jersey has a state income tax rate up to 8.97%. The property tax rate is 2.08% and the combined sales tax rate is 6.69%.
How much is property tax in Parsippany-Troy Hills?
The effective property tax rate in Parsippany-Troy Hills is 2.08%. On the median home price of $414,000, this equals approximately $8,611 per year or $718 per month. This is above the national average of 1.1%.
What is the sales tax rate in Parsippany-Troy Hills?
The combined sales tax rate in Parsippany-Troy Hills is 6.69%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Parsippany-Troy Hills's tax burden compare to other cities?
Parsippany-Troy Hills has a very high overall tax burden. The effective total tax rate for a median-income household is approximately 37.3%. The combination of 8.97% state income tax, 2.08% property tax, and 6.69% sales tax determines the total burden. Cost of living index is 115.5 (100 = national average).
Are there any local taxes in Parsippany-Troy Hills?
Parsippany-Troy Hills 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).