Retire in New Jersey: 2026 Tax & Cost of Living Guide
Highest property tax rate in the nation. Large $100K pension exclusion for moderate-income retirees age 62+ partly offsets. Inheritance tax only affects distant heirs.
State income tax
Progressive — top rate 10.75%
Social Security
Not taxed
Estate tax
None
Property tax
2.49%
How New Jersey Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Taxed
- Private pensions
- Taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
$100K pension/IRA exclusion for taxpayers age 62+ with AGI under $150K
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $5,375 | 10.8% |
| $100,000 | $10,750 | 10.8% |
| $200,000 | $21,500 | 10.8% |
Estate & Inheritance Tax
Inheritance Tax
11-16% on non-immediate-family beneficiaries; spouses/children/parents exempt
We don't have detailed cost-of-living data for a city in New Jersey yet. See our city guides for 300+ other cities worldwide, or compare New Jersey against other US states below.
States With No Income Tax
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.