Economy

The U.S. Bureau of Economic Analysis estimates that New Jersey's gross state product in the fourth quarter of 2018 was $639.8 billion. New Jersey's estimated taxpayer burden in 2015 was $59,400 per taxpayer. New Jersey is nearly $239 billion in debt.

Affluence

New Jersey's per capita gross state product in 2008 was $54,699, second in the U.S. and above the national per capita gross domestic product of $46,588. Its per capita income was the third highest in the nation with $51,358. In 2020, New Jersey had the highest number of millionaires per capita in the United States, approximately 9.76% of households. The state is ranked second in the nation by the number of places with per capita incomes above national average with 76.4%. Nine of New Jersey's counties are among the 100 wealthiest U.S. counties.

Fiscal policy

New Jersey has seven tax brackets that determine state income tax rates, which range from 1.4% (for income below $20,000) to 8.97% (for income above $500,000).

The standard sales tax rate as of January 1, 2018, is 6.625%, applicable to all retail sales unless specifically exempt by law. This rate, which is comparably lower than that of New York City, often attracts numerous shoppers from New York City, often to suburban Paramus, New Jersey, which has five malls, one of which (the Garden State Plaza) has over two million square feet of retail space. Tax exemptions include most food items for at-home preparation, medications, most clothing, footwear and disposable paper products for use in the home. There are 27 Urban Enterprise Zone statewide, including sections of Paterson, Elizabeth, and Jersey City. In addition to other benefits to encourage employment within the zone, shoppers can take advantage of a reduced 3.3125% sales tax rate (half the rate charged statewide) at eligible merchants.

New Jersey has the highest cumulative tax rate of all 50 states with residents paying a total of $68 billion in state and local taxes annually with a per capita burden of $7,816 at a rate of 12.9% of income. All real property located in the state is subject to property tax unless specifically exempted by statute. New Jersey does not assess an intangible personal property tax, but it does impose an inheritance tax.

Federal taxation disparity

New Jersey consistently ranks as having one of the highest proportional levels of disparity of any state in the United States, based upon what it receives from the federal government relative to what it gives. In 2015, WalletHub ranked New Jersey the state least dependent upon federal government aid overall and having the fourth lowest return on taxpayer investment from the federal government, at 48 cents per dollar.

New Jersey has one of the highest tax burdens in the nation. Factors for this include the large federal tax liability which is not adjusted for New Jersey's higher cost of living and Medicaid funding formulas.

Industries

New Jersey's economy is multifaceted, but is centered on the pharmaceutical industry, biotechnology, information technology, the financial industry, chemical development, telecommunications, food processing, electric equipment, printing, publishing, and tourism. New Jersey's agricultural outputs are nursery stock, horses, vegetables, fruits and nuts, seafood, and dairy products. New Jersey ranks second among states in blueberry production, third in cranberries and spinach, and fourth in bell peppers, peaches, and head lettuce. The state harvests the fourth-largest number of acres planted with asparagus.

Although New Jersey is home to many energy-intensive industries, its energy consumption is only 2.7% of the U.S. total, and its carbon dioxide emissions are 0.8% of the U.S. total. Its comparatively low greenhouse gas emissions can be attributed to the state's use of nuclear power. According to the Energy Information Administration, nuclear power dominates New Jersey's electricity market, typically supplying more than one-half of state generation. New Jersey has three nuclear power plants, including the Oyster Creek Nuclear Generating Station, which came online in 1969 and is the oldest operating nuclear plant in the country.

New Jersey has a strong scientific economy and is home to major pharmaceutical and telecommunications firms, drawing on the state's large and well-educated labor pool. There is also a strong service economy in retail sales, education, and real estate, serving residents who work in New York City or Philadelphia.

Shipping is a key industry in New Jersey because of the state's strategic geographic location, the Port of New York and New Jersey being the busiest port on the East Coast. The Port Newark-Elizabeth Marine Terminal was the world's first container port and today is one of the world's largest.

New Jersey hosts several business headquarters, including twenty-four Fortune 500 companies. Paramus in Bergen County has become the top retail ZIP code (07652) in the United States, with the municipality generating over US$6 billion in annual retail sales. Several New Jersey counties, including Somerset (7), Morris (10), Hunterdon (13), Bergen (21), and Monmouth (42), have been ranked among the highest-income counties in the United States.

Tourism

New Jersey's location at the center of the Northeast megalopolis and its extensive transportation system have put over one-third of all United States residents and many Canadian residents within overnight distance by land. This accessibility to consumer revenue has enabled seaside resorts such as Atlantic City and the remainder of the Jersey Shore, as well as the state's other natural and cultural attractions, to contribute significantly to the record 111 million tourist visits to New Jersey in 2018, providing US$44.7 billion in tourism revenue, directly supporting 333,860 jobs, sustaining more than 531,000 jobs overall including peripheral impacts, and generating US$5 billion in state and local tax revenue.

Gambling

In 1976, a referendum of New Jersey voters approved casino gambling in Atlantic City, where the first legalized casino opened in 1978. At that time, Las Vegas was the only other casino resort in the country. Today, several casinos lie along the Atlantic City Boardwalk,citation needed the first and longest boardwalk in the world.citation needed Atlantic City experienced a dramatic contraction in its stature as a gambling destination after 2010, including the closure of multiple casinos since 2014, spurred by competition from the advent of legalized gambling in other northeastern U.S. states. On February 26, 2013, Governor Chris Christie signed online gambling into law. Sports betting has become a growing source of gambling revenue in New Jersey since being legalized across the nation by the U.S. Supreme Court on May 14, 2018.

Natural resources

Forests cover 45%, or approximately 2.1 million acres, of New Jersey's land area. The chief tree of the northern forests is the oak. The Pine Barrens, consisting of pine forests, is in the southern part of the state.

Some mining activity of zinc, iron, and manganese still takes place in the area in and around the Franklin Furnace.

New Jersey is second in the nation in solar power installations, enabled by one of the country's most favorable net metering policies, and the renewable energy certificates program. The state has more than 10,000 solar installations.