Texas vs New Jersey Taxes: Income, Property & Sales

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

Texas vs New Jersey Income Tax Comparison

	Texas	New Jersey
Income Tax Rates & Thresholds	None	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+
Median Income	$74,640	$92,340
Income Tax Paid On Median Household Income	$9,189	$16,776
Income After Tax Based on Median Household Income	$65,451	$75,564

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Texas vs New Jersey Property Tax Comparison

	Texas	New Jersey
Average Property Tax Rate	1.25%	1.79%
Average House Price By State	$305,497	$500,717
Average Property Tax Owed Per Year	$3,819	$8,963
Income After Income Taxes & Property Taxes Based On Median State Household Income	$61,632	$66,601

Texas vs New Jersey Sales Tax Comparison

	Texas	New Jersey
Average State Sales Tax	6.25%	6.63%
Average Local Sales Tax Across the State	1.95%	-0.03%
Average Combined Sales Tax Rate	8.20%	6.60%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,671	$4,124
Maximum Disposable Income Based on Median Household Income	$56,961	$62,478

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

	Texas	New Jersey
Income Tax Owed	$3,040	$3,723
After Tax Income	$36,960	$36,277
Income After Income & Property Tax	$33,141	$27,314
Maximum Disposable Income After Income, Property & Sales Taxes	$30,630	$25,623

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

	Texas	New Jersey
Income Tax Owed	$5,968	$7,736
After Tax Income	$54,032	$52,264
Income After Income & Property Tax	$50,213	$43,301
Maximum Disposable Income After Income, Property & Sales Taxes	$46,408	$40,620

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

	Texas	New Jersey
Income Tax Owed	$10,368	$13,276
After Tax Income	$69,632	$66,724
Income After Income & Property Tax	$65,813	$57,761
Maximum Disposable Income After Income, Property & Sales Taxes	$60,826	$54,185

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

	Texas	New Jersey
Income Tax Owed	$14,768	$18,950
After Tax Income	$85,232	$81,050
Income After Income & Property Tax	$81,413	$72,087
Maximum Disposable Income After Income, Property & Sales Taxes	$75,243	$67,624

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

	Texas	New Jersey
Income Tax Owed	$8,481	$11,121
After Tax Income	$91,519	$88,879
Income After Income & Property Tax	$87,700	$79,916
Maximum Disposable Income After Income, Property & Sales Taxes	$81,054	$74,968

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

	Texas	New Jersey
Income Tax Owed	$18,536	$23,941
After Tax Income	$131,464	$126,059
Income After Income & Property Tax	$127,645	$117,096
Maximum Disposable Income After Income, Property & Sales Taxes	$117,972	$109,846

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

	Texas	New Jersey
Income Tax Owed	$29,536	$38,109
After Tax Income	$170,464	$161,891
Income After Income & Property Tax	$166,645	$152,928
Maximum Disposable Income After Income, Property & Sales Taxes	$154,016	$143,460

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

	Texas	New Jersey
Income Tax Owed	$41,455	$53,213
After Tax Income	$208,545	$196,787
Income After Income & Property Tax	$204,726	$187,824
Maximum Disposable Income After Income, Property & Sales Taxes	$189,211	$176,195

FAQ

Does Texas or New Jersey have lower income taxes?

Texas’s income tax falls into the following range: None

Whereas New Jersey’s income tax is the following

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+

Does Texas or New Jersey have lower property taxes?

Texas has an average property tax rate of 1.25%

In comparison, New Jersey has an average property tax rate of 1.79%

Does Texas or New Jersey have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

In contrast, 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%.

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

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

In comparison, New Jersey gives you $62,478.

More Comparisons:

Texas vs Virginia
Texas vs Washington
Texas vs Arizona
Texas vs Tennessee
Texas vs Massachusetts


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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/