Like all the U.S. states listed in this article, New Jersey doesn’t tax unemployment benefits either. Yet, it does have an income tax. The lowest rate is 1.4 percent on $20,000 of taxable income, while the highest rate is 10.75 percent when it comes to taxable income that exceeds $1 million. There’s a payroll tax, too.
You don’t get away with avoiding sales taxes either. New Jersey imposes a 6.625 percent levy. However, this rate is actually cut in half for in-person sales in designated Urban Enterprise Zones that are located in disadvantaged areas. For instance, Salem county has a reduced rate (3.3125 percent).