How New Jersey Generates Revenue: Taxes, Fees, and Federal Aid

New Jersey's state revenue comes from a mix of taxes, fees, and federal transfers:

• Sales Tax (6.625%) – One of the highest nationally; major revenue driver.
• Income Tax – Graduated rates from 1.4% to 10.75% on individuals and businesses.
• Property Tax – Levied locally; funds municipal services (schools, police, roads).
• Corporate Tax (9%) – On net income of corporations operating in the state.
• Fees & Licenses – Driver's licenses, vehicle registrations, business permits.
• Federal Funding – Grants, reimbursements, and program aid (significant portion of budget).
• Bond Issuance – Borrowing for infrastructure and capital projects.