The short version
- Social Security taxed?
- No
- Income tax
- Brackets 1.4%–10.75%
- Property tax on a $300,000 home
- ≈ $5,640 / yr ($470 / mo)
- Everyday cost index (U.S. = 100)
- 115
- January / July high
- 39°F / 87°F
- Sales tax (state + local avg)
- 6.60%
Retiring in New Jersey
A generous retirement income exclusion and new senior property tax credits soften the blow. Watch out: still tied for the highest property taxes in America.
How New Jersey taxes your retirement income
Social Security: not taxed at all.
Pensions: Retirement exclusion up to $100,000 (joint) / $75,000 (single) if total income is $150,000 or less.
401(k) and IRA withdrawals: The same exclusion covers 401(k)/IRA withdrawals.
The setup: Brackets 1.4%–10.75%.
Property tax & senior breaks
The average effective property tax rate is about 1.88% — roughly $5,640 a year ($470 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Senior Freeze rebates plus the new Stay NJ credit (up to $6,500) for homeowners 65+.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 15% above the U.S. average. The combined state and average local sales tax is 6.60%.
Weather
January days top out around 39°F and July days around 87°F, with roughly 205 sunny days a year. Watch out for: Nor'easters and coastal hurricanes.
Healthcare
Strong hospitals statewide plus easy access to New York and Philadelphia care.
Estate & inheritance taxes
New Jersey has an inheritance tax. Inheritance tax of 11%–16% on siblings and more distant heirs; spouses and children exempt