This week, the Tax Foundation compiled the state’s individual income tax rates and brackets for 2021, with New Jersey settling in with the second highest income tax rate in the nation.
The Garden State’s 10.75% top income rate is only surpassed by California (13.3%). In September, New Jersey lowered the threshold for the top income rate to kick in at $1 million in income. The previous threshold was $5 million.
According to the Tax Foundation, 42 states levy individual income taxes. All of them – with the exception of New Hampshire – tax wage and salary income. New Hampshire exclusively taxes dividend and interest income. Eight states levy on individual income tax at all.
To see the full report and map, click here.