New Jersey vs South Dakota Taxes: Income, Property & Sales

Does New Jersey or South Dakota have lower taxes? We answer that in a variety of ways below:

New Jersey vs South Dakota Income Tax Comparison

	New Jersey	South Dakota
Income Tax Rates & Thresholds	1.40%: $0-$20,000 1.75%: $20,001-$35,000 3.50%: $35,001-$40,000 5.53%: $40,001-$75,000 6.37%: $75,001-$500,000 8.97%: $500,001-$1,000,000 10.75%: $1,000,001+	None
Median Income	$92,340	$67,180
Income Tax Paid On Median Household Income	$16,776	$7,547
Income After Tax Based on Median Household Income	$75,564	$59,633

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New Jersey vs South Dakota Property Tax Comparison

	New Jersey	South Dakota
Average Property Tax Rate	1.79%	1.03%
Average House Price By State	$500,717	$296,811
Average Property Tax Owed Per Year	$8,963	$3,057
Income After Income Taxes & Property Taxes Based On Median State Household Income	$66,601	$56,576

New Jersey vs South Dakota Sales Tax Comparison

	New Jersey	South Dakota
Average State Sales Tax	6.63%	4.50%
Average Local Sales Tax Across the State	-0.03%	1.90%
Average Combined Sales Tax Rate	6.60%	6.40%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,124	$3,403
Maximum Disposable Income Based on Median Household Income	$62,478	$53,173

After Tax Comparison Earning $40,000 Per Year Filing As Single

	New Jersey	South Dakota
Income Tax Owed	$3,723	$3,040
After Tax Income	$36,277	$36,960
Income After Income & Property Tax	$27,314	$33,903
Maximum Disposable Income After Income, Property & Sales Taxes	$25,623	$31,864

After Tax Comparison Earning $60,000 Per Year Filing As Single

	New Jersey	South Dakota
Income Tax Owed	$7,736	$5,968
After Tax Income	$52,264	$54,032
Income After Income & Property Tax	$43,301	$50,975
Maximum Disposable Income After Income, Property & Sales Taxes	$40,620	$47,909

After Tax Comparison Earning $80,000 Per Year Filing As Single

	New Jersey	South Dakota
Income Tax Owed	$13,276	$10,368
After Tax Income	$66,724	$69,632
Income After Income & Property Tax	$57,761	$66,575
Maximum Disposable Income After Income, Property & Sales Taxes	$54,185	$62,570

After Tax Comparison Earning $100,000 Per Year Filing As Single

	New Jersey	South Dakota
Income Tax Owed	$18,950	$14,768
After Tax Income	$81,050	$85,232
Income After Income & Property Tax	$72,087	$82,175
Maximum Disposable Income After Income, Property & Sales Taxes	$67,624	$77,232

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	New Jersey	South Dakota
Income Tax Owed	$11,121	$8,481
After Tax Income	$88,879	$91,519
Income After Income & Property Tax	$79,916	$88,462
Maximum Disposable Income After Income, Property & Sales Taxes	$74,968	$83,141

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	New Jersey	South Dakota
Income Tax Owed	$23,941	$18,536
After Tax Income	$126,059	$131,464
Income After Income & Property Tax	$117,096	$128,407
Maximum Disposable Income After Income, Property & Sales Taxes	$109,846	$120,683

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	New Jersey	South Dakota
Income Tax Owed	$38,109	$29,536
After Tax Income	$161,891	$170,464
Income After Income & Property Tax	$152,928	$167,407
Maximum Disposable Income After Income, Property & Sales Taxes	$143,460	$157,337

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	New Jersey	South Dakota
Income Tax Owed	$53,213	$41,455
After Tax Income	$196,787	$208,545
Income After Income & Property Tax	$187,824	$205,488
Maximum Disposable Income After Income, Property & Sales Taxes	$176,195	$193,128

FAQ

Does New Jersey or South Dakota have lower income taxes?

New Jersey’s income tax falls into the following range:

1.40%: $0-$20,000

1.75%: $20,001-$35,000

3.50%: $35,001-$40,000

5.53%: $40,001-$75,000

6.37%: $75,001-$500,000

8.97%: $500,001-$1,000,000

10.75%: $1,000,001+

Whereas South Dakota’s income tax is the following None

Does New Jersey or South Dakota have lower property taxes?

New Jersey has an average property tax rate of 1.79%

In comparison, South Dakota has an average property tax rate of 1.03%

Does New Jersey or South Dakota have lower sales taxes?

New Jersey has a state sales tax rate of 6.63% and an average local rate of -0.03% for a combined total rate of 6.60%.

In contrast, South Dakota has a state sales tax rate of 4.50% and an average local rate of 1.90% for a combined total rate of 6.40%.

Do you get to keep more money in New Jersey or South Dakota?

Based on median household income after income, property and sales taxes New Jersey gives you a maximum amount of disposable income of $62,478

In comparison, South Dakota gives you $53,173.

More Comparisons:

New Jersey vs North Dakota
New Jersey vs Alaska
New Jersey vs Washington DC
New Jersey vs Vermont
New Jersey vs Wyoming


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Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/