Taxes in Paterson, New Jersey
Complete tax guide for Paterson, NJ. State income tax up to 10.75%, 3.15% property tax, 6.63% sales tax. Calculate your total tax burden.
State Income Tax
10.75%
New Jersey
Property Tax
3.15%
Effective rate
Sales Tax
6.63%
Combined rate
Tax Burden
Very High
Paterson, NJ Tax Overview
Among highest property tax rates in the state
Population
159,732
Median Income
$40,423
Cost of Living
112.8 (100 = avg)
State Income Tax
10.75%
Median Home Price
$310,000
Paterson Tax Calculator
Pre-filled with Paterson median: $40,423
Total Tax Burden in Paterson
$10,250
Take-Home: $30,173 · Effective Rate: 25.36%
Federal Tax
$2,812
6.96% eff.
NJ State
$4,345
10.75% eff.
FICA
$3,092
7.65% eff.
Take-Home
$30,173
74.64% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $40,423.00 | $3,368.58 |
| Federal Income Tax | -$2,812.26 | -$234.36 |
| New Jersey State Tax | -$4,345.47 | -$362.12 |
| Social Security (6.2%) | -$2,506.23 | -$208.85 |
| Medicare (1.45%) | -$586.13 | -$48.84 |
| Take-Home Pay | $30,172.91 | $2,514.41 |
Property Tax in Paterson
Median Home
$310,000
Annual Tax
$9,765
Monthly Tax
$814
Effective Rate
3.15%
Sales Tax in Paterson
Combined Rate
6.63%
State Portion
~4.1%
Local Portion
~2.5%
The combined sales tax rate in Paterson 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 | Paterson | New Jersey Avg | National Avg |
|---|---|---|---|
| Income Tax | 10.75% | 10.75% | 4.6% |
| Property Tax | 3.15% | ~3.15% | 1.1% |
| Sales Tax | 6.63% | ~6.63% | 7.12% |
| Overall Burden | Very High | — | Moderate |
Tax Saving Tips for Paterson 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 Paterson (3.15%) 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 Paterson, NJ?
Paterson, New Jersey has a state income tax rate up to 10.75%. The property tax rate is 3.15% and the combined sales tax rate is 6.63%. Among highest property tax rates in the state
How much is property tax in Paterson?
The effective property tax rate in Paterson is 3.15%. On the median home price of $310,000, this equals approximately $9,765 per year or $814 per month. This is above the national average of 1.1%.
What is the sales tax rate in Paterson?
The combined sales tax rate in Paterson is 6.63%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Paterson's tax burden compare to other cities?
Paterson 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, 3.15% property tax, and 6.63% sales tax determines the total burden. Cost of living index is 112.8 (100 = national average).
Are there any local taxes in Paterson?
Paterson 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). Among highest property tax rates in the state