New Jersey households often cite property tax first and income tax second. Our summary ranks NJ #3 for estimated savings vs. Texas (~$25,400/yr on defaults).
Newark is our default city — no local wage tax (unlike NYC). Select it in the income calculator to confirm.
Also read: New Jersey exit & residency · Pending NJ proposals
New Jersey tax snapshot (our data)
| Category | New Jersey (typical) | Notes |
|---|---|---|
| State income tax | Top rate 10.75% | ~$17,000/yr at $300,000 W-2 + business (single); ~$10,600 at $200,000 W-2 only |
| Business / pass-through | Same state brackets | ~$6,400 incremental tax on $100,000 business income in our model |
| Newark local wage tax | $0 | No NJ city wage tax in our model |
| Typical 3-bedroom home | ~$620,500 | Avg. Newark + Jersey City metro $/sq ft × ~1,700 sq ft |
| Property tax (effective) | ~2.23% | ~$13,800/yr on that home |
| Combined sales tax | ~6.6% | Lower than NY/CA — TX can be slightly higher on same spending |
| Gas (~1,000 gal/yr, 2 cars) | ~$3,200/yr | |
| Vehicle registration | ~$350/yr | 2 cars |
| Auto insurance | ~$4,200/yr | 2 cars |
New Jersey → Texas: example savings
| Line item | Approx. annual difference (NJ − TX) |
|---|---|
| State income tax (W-2 + business) | ~$17,000 |
| Property tax (3-bed each state) | ~$9,400 |
| Living costs (2 cars) | Roughly even |
| Sales tax | NJ lower — small TX increase in model |
| Rough combined | ~$25,400/yr |
Use the combined summary with NJ and TX selected in all four blocks. The debt-free 30-year headline — annual savings plus typical home purchase difference, compounded at 6% — is roughly ~$3.4M in our model.
Common relocation paths
Move timing
See pending proposals and why move now.
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