New Jersey's recent budgets left income tax rates alone but reshaped property tax relief and raised costs on high-value real estate sales. Here's what matters for 2026.

A plain-English rundown for New Jersey individuals and business owners, with what to do about each change.

No broad income tax increase

The budget enacted in June 2026 didn't include a new income tax or a broad-based rate increase on individuals. New Jersey's rates still run from 1.4% to 10.75% on income over $1 million.

Property tax relief: ANCHOR and Stay NJ

  • ANCHOR continues, with annual benefits for eligible homeowners and renters ranging from several hundred dollars to over $1,000.
  • Stay NJ, the program for senior homeowners, paid its first benefits in 2026. Recent budgets adjusted its income limits and maximum benefit, so seniors should recheck eligibility each year.
  • The income tax property tax deduction of up to $15,000 (or a $50 credit) remains on your New Jersey return.

See New Jersey property tax relief for how these programs fit together.

A bigger "mansion tax"

New Jersey replaced its flat 1% fee on residential sales over $1 million with a graduated fee that rises with the sale price. If you're buying or selling a home above $1 million, ask your attorney or title company to confirm the current rates and who pays before you set your price.

Business taxes

  • The Corporate Transit Fee, an additional 2.5% on corporations with more than $10 million of New Jersey allocated taxable net income, continues through 2028.
  • BAIT, New Jersey's pass-through entity tax, remains available and still saves federal tax for many owners. See NJ BAIT and NY PTET.
  • Federal S corporations are generally treated as New Jersey S corporations automatically.

Retirees

Social Security remains exempt, and the pension and retirement income exclusion (up to $100,000 for joint filers with income of $100,000 or less) is unchanged. See how New Jersey taxes retirement income.

What to do now

  • Seniors: check Stay NJ and Senior Freeze eligibility for the coming year.
  • Selling a home over $1 million: price in the graduated transfer fee.
  • Business owners: evaluate the BAIT election with your 2026 numbers.
  • Inheriting from a sibling, niece or nephew? Read about the New Jersey inheritance tax.