thumb|right|225px|Dominant seventh chord on C: C<sup>7</sup> .

Jazz harmony is the theory and practice of how chords are used in jazz music. While jazz bears certain similarities to other practices in the tradition of Western harmony, such as many chord progressions and the incorporation of the major and minor scales as a basis for chordal construction, other characteristics such as modality, syntax and phrase structure separate it from Western tradition. In jazz, chords are often arranged vertically in major or minor thirds, although stacked fourths are also quite common. Open, modal harmony is characteristic of the music of McCoy Tyner, whereas rapidly shifting key centers is a hallmark of the middle period of John Coltrane's writing. Horace Silver, Clare Fischer, Dave Brubeck, and Bill Evans are pianists whose compositions are more typical of the chord-rich style associated with pianist-composers. Joe Henderson, Woody Shaw, Wayne Shorter and Benny Golson are non-pianists who also have a strong sense of the role of harmony in compositional structure and mood. These composers (including also Dizzy Gillespie and Charles Mingus, who recorded infrequently as pianists) have musicianship grounded in chords at the piano, even though they are not performing keyboardists.

The authentic cadence (V-I) is the most important one in both classical and jazz harmony, though in jazz it more often follows a ii or II chord serving as predominant. To cite Rawlins and Bahha, as above: "The ii-V-I [progression] provides the cornerstone of jazz harmony" This type of harmonic structure echoes that of mid-century pop and show tunes, from which much of the jazz standard repertoire is drawn. The structure of a jazz tune will often use the ii-V-I and other prolongations/preparations to tonicize certain notes while still maintaining a tonality based in one key center. For example, the popular John Coltrane tune "Giant Steps" moves through many keys using ii-V-I's as setups to tonicize Eb, G, and B, while still maintaining a tonality in the key of Eb throughout the whole piece. "Have You Met Miss Jones", a Rodgers and Hammerstein show tune canonized in the Great American Songbook, features a bridge that tonicizes a series of notes separated by major thirds using ii-V-I's in a similar manner to Giant Steps.

In addition to functional harmonic movement, jazz utilizes many patterns of nonfunctional harmony, characterized by coloring and voice leading techniques. Not all chords in this style adhere to standards functional interpretations, instead serving to "color" the harmony with timbre-like effects.

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