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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A New Jersey VS COUNTRY B Wisconsin

Side-by-side analysis of income tax, effective rates, and take-home pay for New Jersey and Wisconsin in 2026.

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
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OVERVIEW
New Jersey and Wisconsin produce one of the closer, more genuinely income-dependent comparisons on this site. For renters and pure income-tax comparison, New Jersey is cheaper at $50,000 through roughly $150,000 income — but the gap narrows steadily (from $836/year at $50,000 to just $107/year at $150,000) until it flips: at $250,000, Wisconsin's income tax is actually $963/year lower than New Jersey's, because New Jersey's income tax brackets climb more steeply at high incomes while Wisconsin's top rate (7.65%) doesn't kick in until $323,290 for single filers. For homeowners, the calculus is different and more one-sided: New Jersey has the highest average property tax bill in the nation (roughly 1.88% effective rate, tied for #1 with Illinois), while Wisconsin's average effective rate is roughly 1.25%-1.32% — meaningfully lower despite also ranking above the national average. On a $350,000 home, that's about $6,580/year in New Jersey property tax versus about $4,480/year in Wisconsin, a $2,100/year gap that makes Wisconsin the cheaper overall state for homeowners at every income level shown, even where New Jersey's income tax alone is lower. Wisconsin also offers a notable capital gains advantage: long-term capital gains receive a 30% exclusion before being taxed (60% for qualifying farm assets), reducing Wisconsin's effective rate on investment income below its stated bracket rates — New Jersey offers no comparable exclusion and taxes capital gains as ordinary income in full. On retirement income, both states fully exempt Social Security; New Jersey additionally offers a substantial pension/retirement income exclusion for residents 62 and older with total income under $150,000, while Wisconsin taxes most 401(k), IRA, and pension income as ordinary income (aside from a narrow exemption for certain pre-1964 Wisconsin Retirement System contributions).
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🏙️
COUNTRY A
New Jersey
TAX RATE
1.4-10.75%
7-Bracket Progressive
7 progressive brackets from 1.4% to 10.75% (top rate applies over $1M); no local income tax anywhere in the state
🧀
COUNTRY B
Wisconsin
TAX RATE
3.5-7.65%
4-Bracket Progressive
4 progressive brackets from 3.5% to 7.65%, with a 30% capital gains exclusion (60% for qualifying farm assets); no local income tax anywhere
TYPICAL ANNUAL DIFFERENCE
Moving from Wisconsin → New Jersey at $100,000
$642
That's $54/month back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
🏙️ NJ TAX
🧀 WI TAX
SAVINGS
10-YEAR
$50,000
$523
$1,359
$836 (NJ saves)
$8,360
$75,000
$1,762
$2,535
$773 (NJ saves)
$7,730
$100,000
$3,218
$3,860
$642 (NJ saves)
$6,420
$150,000
$6,403
$6,510
$107 (NJ saves)
$1,070
$250,000
$12,773
$11,810
$963 (WI saves)
$9,630
💡

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New Jersey Pros & Cons

+ PROS
  • Income tax is lower than Wisconsin's from $50,000 up to about $150,000 income, saving $107 to $836/year for renters and non-homeowners in that range
  • Social Security fully exempt at any income level, plus a pension/retirement income exclusion for residents 62+ with total income under $150,000
  • No local income tax anywhere in New Jersey, unlike some neighboring states
  • Proximity to both New York City and Philadelphia job markets, without either city's separate local income tax applying to New Jersey residents
− CONS
  • Highest average property tax bill in the nation — roughly 1.88% effective rate (tied #1 with Illinois) — versus Wisconsin's roughly 1.25%-1.32%
  • For homeowners, New Jersey's property-tax premium (about $2,100/year more than Wisconsin on a $350,000 home) outweighs New Jersey's income-tax savings at every income level shown
  • Income tax crosses over above roughly $150,000 — high earners actually pay more in New Jersey than in Wisconsin ($963/year more at $250,000)
  • No capital gains exclusion — investment income is taxed as ordinary income in full, unlike Wisconsin's 30% long-term exclusion
🧀

Wisconsin Pros & Cons

+ PROS
  • Average property tax (~1.25%-1.32%) is meaningfully lower than New Jersey's roughly 1.88% — on a $350,000 home, that's about $2,100/year less
  • For homeowners, Wisconsin is the cheaper overall state at every income level shown, once the property-tax gap is factored in alongside income tax
  • 30% long-term capital gains exclusion (60% for qualifying farm assets) reduces the effective tax rate on investment income — New Jersey has no equivalent
  • Income tax becomes cheaper than New Jersey's above roughly $150,000 income, saving $963/year at $250,000 and more at higher incomes
− CONS
  • Income tax is higher than New Jersey's at $50,000 through $150,000 income, costing $107 to $836/year more for renters in that range
  • No broad Social Security exemption beyond the federal exclusion structure — though Wisconsin does not add its own tax on top
  • Most 401(k), IRA, and pension income is taxed as ordinary income, aside from a narrow exemption for certain pre-1964 Wisconsin Retirement System contributions
  • Top marginal rate of 7.65% applies to income over $323,290 (single) — high earners well above that threshold still face a substantial state tax bill
FAQ

Frequently Asked Questions

Is New Jersey or Wisconsin cheaper for state income tax?

It depends on income. New Jersey is cheaper from $50,000 up to about $150,000 (by $836 down to just $107/year), but Wisconsin becomes cheaper above that — at $250,000, Wisconsin's income tax is $963/year lower than New Jersey's. This crossover happens because New Jersey's brackets climb more steeply at high incomes.

Why does the savings advantage flip between New Jersey and Wisconsin?

New Jersey's income tax brackets rise sharply at higher incomes (reaching 10.75% over $1 million), while Wisconsin's top rate (7.65%) applies to income over $323,290 and doesn't climb further. As income rises toward $150,000-$250,000, New Jersey's steeper progression closes the gap and eventually overtakes Wisconsin's flatter high-income structure.

Which state has lower property tax, New Jersey or Wisconsin?

Wisconsin has the lower average effective property tax rate at roughly 1.25%-1.32%, compared to New Jersey's roughly 1.88% — the highest average in the United States, tied with Illinois. On a $350,000 home, that's about $4,480/year in Wisconsin versus $6,580/year in New Jersey, a difference of about $2,100/year in Wisconsin's favor.

Is New Jersey or Wisconsin better for homeowners overall?

Wisconsin is generally better for homeowners at every income level shown. Even where New Jersey's income tax is lower (up to $150,000), New Jersey's property-tax premium (about $2,100/year more on a $350,000 home) outweighs that income-tax savings. Renters who don't own property, however, generally see New Jersey's income-tax advantage without the offsetting property-tax cost, up to about $150,000 income.

Does Wisconsin offer a capital gains tax break?

Yes. Wisconsin excludes 30% of long-term capital gains from state taxable income (60% for qualifying farm assets), meaning only 70% of a typical long-term gain is taxed at Wisconsin's ordinary income rates. New Jersey has no comparable exclusion — capital gains are taxed as ordinary income in full.

Does either state tax Social Security and retirement income?

Both states fully exempt Social Security from state income tax. New Jersey additionally offers a pension/retirement income exclusion for residents 62 or older with total income under $150,000. Wisconsin taxes most other retirement income (401(k), IRA, pensions) as ordinary income, aside from a narrow exemption for certain pre-1964 Wisconsin Retirement System contributions.

How much would I save moving from New Jersey to Wisconsin?

For a renter at $100,000 income, moving from New Jersey to Wisconsin would actually cost about $642/year more in income tax. But for a homeowner with a $350,000 home, Wisconsin's lower property tax (about $2,100/year less) more than offsets that, making Wisconsin the cheaper overall choice even at $100,000 income for homeowners.

At what income does Wisconsin become cheaper than New Jersey for income tax alone?

Based on the figures above, the crossover happens between $150,000 and $250,000 income — New Jersey is still slightly cheaper at $150,000 (by just $107/year), but Wisconsin is $963/year cheaper by $250,000. High earners above this range should expect Wisconsin's income tax to be the lower of the two.

Which state is better for retirees, New Jersey or Wisconsin?

New Jersey is generally more retirement-friendly on income tax: it fully exempts Social Security and offers a pension/retirement income exclusion up to $150,000 total income for residents 62+. Wisconsin exempts Social Security but taxes most 401(k), IRA, and pension withdrawals as ordinary income. For homeowners, however, Wisconsin's much lower property tax often outweighs New Jersey's retirement-income exclusion advantage.
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
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