Taxes in Newark
Newark's real, combined tax picture layers New Jersey's own genuine, graduated 7-bracket state income tax (1.4% up to 10.75% above $1 million) with Newark's own, separate flat 1.00% city earned-income tax on both residents and non-resident commuters -- alongside an effective property tax rate that genuinely runs below both the Essex County and statewide averages.
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Learn moreNew Jersey's Real, Graduated State Income Tax
New Jersey's state income tax is genuinely progressive across 7 brackets, from 1.4% on income up to $20,000, rising through several intermediate brackets, up to 10.75% on income above $1,000,000 -- the real 'millionaire's tax,' made permanent in 2020. Most Newark residents fall well below the top bracket and pay meaningfully less than 10.75% on their overall income under this graduated structure.
Newark's Own, Separate 1.00% Flat City Earned-Income Tax
Distinct from the state income tax above, Newark levies its own flat 1.00% earned-income tax directly on BOTH residents and non-resident commuters who work within the city -- a real, additional local layer. A top-bracket resident's real combined top marginal rate would run approximately 11.75% (10.75% state + 1.00% city), though this applies only to income actually in the top state bracket.
Newark's Effective Property Tax Rate Runs Below the County and State Averages
As detailed on the property-taxes topic page, Newark's own effective property tax rate ran approximately 1.85% for tax year 2025 -- genuinely below both the Essex County average (~2.5%) and New Jersey's own nation-leading statewide average (~2.42%-2.47%).
New Jersey's Statewide Sales Tax
New Jersey's statewide sales tax rate runs 6.625%. This record did not independently re-verify any Newark-specific Urban Enterprise Zone reduced-rate details for particular categories of retail purchases this pass -- confirm current specifics directly if relevant to a specific purchase.
Key takeaways
- New Jersey's real, graduated state income tax runs 7 brackets from 1.4% up to 10.75% (above $1 million) -- most residents pay meaningfully less than the top rate.
- Newark's own, separate flat 1.00% city earned-income tax applies to both residents and non-resident commuters -- a real, additional local layer on top of the state tax.
- A top-bracket resident's real combined top marginal rate runs approximately 11.75% (10.75% state + 1.00% city), though this applies only to income in the top bracket.
- Newark's own effective property tax rate (~1.85%) runs below both the Essex County (~2.5%) and New Jersey statewide (~2.42%-2.47%) averages.
- New Jersey's statewide sales tax runs 6.625% -- confirm any Newark-specific Urban Enterprise Zone exceptions directly for a specific purchase.
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