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New Jersey: minimum wage, income tax and cost of living

New Jersey in numbers: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for a budget.

Updated: October 11, 2026

What it costs to live and work in New Jersey: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.

New JerseySource
Minimum wage$15.92 an hourUS Department of Labor, State Minimum Wage Laws (updated July 1, 2026)
State income tax1.4 % to 10.75 %Tax Foundation, State Individual Income Tax Rates and Brackets, 2026
State sales tax6.625 %Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026)
Median gross rent$1,800 a month (2024)US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent

New Jersey's minimum wage is $15.92 an hour in 2026 ($15.23 for employers with fewer than six employees and seasonal workers), adjusted every year.

New Jersey has graduated rates from 1.4 % to 10.75 %; the top rate applies to single filers above $1,000,000.

The state sales tax is 6.625 %; there are almost no local sales taxes (Salem County and urban enterprise zones collect less).

What income does rent in New Jersey take?

A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,800 a month, that means a household income of about $72,000 a year before tax.

Work out your take-home pay

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