New Jersey Income
Tax Rates & Rules
New Jersey has a progressive state income tax with rates up to 10.75%. Here's how the brackets break down.
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New Jersey Income Tax Brackets
2025 tax year rates, most recently confirmed by the state Department of Revenue.
Single / Individual
| Taxable Income | Rate |
|---|---|
| $0 – $20,000 | 1.4% |
| $20,000 – $35,000 | 1.75% |
| $35,000 – $40,000 | 3.5% |
| $40,000 – $75,000 | 5.53% |
| $75,000 – $500,000 | 6.37% |
| $500,000 – $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 – $20,000 | 1.4% |
| $20,000 – $50,000 | 1.75% |
| $50,000 – $70,000 | 2.45% |
| $70,000 – $80,000 | 3.5% |
| $80,000 – $150,000 | 5.53% |
| $150,000 – $500,000 | 6.37% |
| $500,000 – $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
New Jersey does not offer a standard deduction — it uses personal exemptions instead ($1,000 per exemption for taxpayer/spouse, plus additional exemptions for dependents, age 65+, and blind/disabled filers).
Sources: NJ Division of Taxation — Tax Tables. Last verified: August 14, 2026.
New Jersey uses a graduated Gross Income Tax system in 2026 with marginal rates from 1.4% to 10.75%. The state does not use a general standard deduction like the federal return. Instead, New Jersey taxable income is reduced through state-specific exemptions and permitted deductions.
The current New Jersey rate schedules have applied since 2020 and remain the state's published individual rate schedules in 2026. Filing status changes the bracket thresholds, while the top 10.75% rate applies to taxable income over $1 million.
Source: New Jersey Income Tax Rate Schedules
What Are the New Jersey Income Tax Rates for 2026?
New Jersey's 2026 individual income tax rates range from 1.4% to 10.75%. The brackets differ between single or married-separate filers and joint, head-of-household or qualifying-surviving-spouse filers.
| Rate | Single / Married Separate | Joint / HOH / Qualifying Surviving Spouse |
|---|---|---|
| 1.40% | $0 to $20,000 | $0 to $20,000 |
| 1.75% | $20,000 to $35,000 | $20,000 to $50,000 |
| 2.45% | Not a separate bracket | $50,000 to $70,000 |
| 3.50% | $35,000 to $40,000 | $70,000 to $80,000 |
| 5.525% | $40,000 to $75,000 | $80,000 to $150,000 |
| 6.37% | $75,000 to $500,000 | $150,000 to $500,000 |
| 8.97% | $500,000 to $1,000,000 | $500,000 to $1,000,000 |
| 10.75% | Over $1,000,000 | Over $1,000,000 |
These are marginal rates. Reaching a higher bracket does not cause every dollar of taxable income to be taxed at the top rate.
Source: New Jersey Tax Rate Schedules
How Is New Jersey Gross Income Tax Calculated?
New Jersey starts with income taxable under the state's Gross Income Tax Act, subtracts qualifying retirement exclusions, exemptions and permitted deductions then applies the rate schedule for the taxpayer's filing status.
- Identify income taxable by New Jersey.
- Subtract qualifying pension or other retirement income exclusions when allowed.
- Determine New Jersey Gross Income.
- Subtract New Jersey personal, dependent and other exemptions.
- Subtract deductions specifically allowed by New Jersey.
- Calculate taxable income.
- Apply the correct New Jersey tax rate schedule.
- Subtract eligible credits and compare the result with withholding or estimated payments.
New Jersey does not simply copy federal taxable income. Some federal deductions are not allowed on the New Jersey return, so federal and state taxable income can differ materially.
New Jersey Has No General Standard Deduction
New Jersey does not provide a general standard deduction for individual Gross Income Tax.
The Division of Taxation states that New Jersey law allows specific deductions but does not automatically allow federal deductions such as mortgage interest, employee business expenses, IRA contributions or Keogh plan contributions merely because they were deductible federally.
Taxpayers reduce New Jersey income through the exemptions and state-authorized deductions that apply to their circumstances.
Source: New Jersey Income Tax Deductions
New Jersey Personal and Dependent Exemptions
New Jersey uses fixed exemption amounts that reduce taxable income before the rate schedule is applied.
| 2026 Exemption Type | Amount |
|---|---|
| Taxpayer | $1,000 |
| Spouse or civil union partner on a joint return | $1,000 |
| Age 65 or older | Additional $1,000 |
| Blind or disabled taxpayer | Additional $1,000 |
| Qualifying veteran | Additional $6,000 |
| Dependent child or other qualifying dependent | $1,500 each |
| Qualifying dependent attending college | Additional $1,000 |
The exact exemption depends on eligibility and filing status. Some exemptions can also apply to a qualifying spouse or civil union partner.
Source: New Jersey Income Tax Exemptions
What Income Is Exempt From New Jersey Income Tax?
New Jersey excludes several categories of income that may be taxable or reportable differently at the federal level.
- Social Security benefits
- Railroad Retirement benefits
- United States military pensions and survivor benefits
- New Jersey unemployment compensation
- Workers' compensation
- Certain state temporary disability and family leave benefits
- Gifts and inheritances
- Certain interest and gains from qualifying New Jersey or federal obligations
This list is not exhaustive. The character and source of income matter, so taxpayers should use the current New Jersey instructions for unusual income items.
Source: New Jersey Exempt Income
New Jersey Retirement Income Exclusion
Qualifying taxpayers can exclude substantial pension, annuity and IRA income from New Jersey Gross Income Tax when age and income requirements are met.
| Total Income | Married Filing Jointly | Married Filing Separately | Single / HOH / Qualifying Surviving Spouse |
|---|---|---|---|
| $100,000 or less | Up to $100,000 | Up to $50,000 | Up to $75,000 |
| $100,001 to $125,000 | 50% of taxable pension | 25% | 37.5% |
| $125,001 to $150,000 | 25% of taxable pension | 12.5% | 18.75% |
| Over $150,000 | No pension exclusion | No pension exclusion | No pension exclusion |
The retirement exclusion has additional age and income rules. Taxpayers may also qualify for an Other Retirement Income Exclusion under separate requirements.
Source: New Jersey Retirement Income
Who Must File a New Jersey Income Tax Return?
New Jersey residents and nonresidents can have a filing requirement when income exceeds the state's minimum filing threshold or when a return is needed to claim a refund or credit.
| Filing Status Group | General New Jersey Gross Income Filing Threshold |
|---|---|
| Single or married/civil-union partner filing separately | More than $10,000 |
| Married/civil-union couple filing jointly | More than $20,000 |
| Head of household | More than $20,000 |
| Qualifying surviving spouse | More than $20,000 |
Nonresidents with New Jersey-source income can also have filing obligations. The state uses Form NJ-1040 for residents and NJ-1040NR for nonresidents.
Source: New Jersey Gross Income Tax Overview
New Jersey Withholding vs. Final Income Tax
New Jersey wage withholding is a prepayment toward Gross Income Tax rather than the final annual liability.
An employee may receive a refund when withholding exceeds final tax after exemptions, deductions and credits. Additional tax can be due when withholding is insufficient.
To estimate how New Jersey income tax withholding affects take-home pay, use the New Jersey Paycheck Calculator.
When Are New Jersey Estimated Tax Payments Required?
New Jersey generally requires estimated income tax payments when a taxpayer expects to owe more than $400 after subtracting withholding and other credits.
| 2026 Estimated Tax Item | New Jersey Rule |
|---|---|
| General estimated-tax threshold | More than $400 expected due after withholding and credits |
| Quarter 1 | April 15, 2026 |
| Quarter 2 | June 15, 2026 |
| Quarter 3 | September 15, 2026 |
| Quarter 4 | January 15, 2027 |
Form NJ-1040-ES is used for 2026 estimated tax. Wage earners can often reduce an estimated-tax obligation by updating Form NJ-W4 to increase withholding.
Source: 2026 NJ-1040-ES Instructions
Source: New Jersey Estimated Payments
Frequently Asked Questions
What Is the Highest New Jersey Income Tax Rate for 2026?
The highest New Jersey individual Gross Income Tax rate is 10.75% on taxable income over $1 million.
Does New Jersey Have a Standard Deduction?
No. New Jersey does not provide a general standard deduction. It uses state-specific exemptions and deductions instead.
Are Social Security Benefits Taxed in New Jersey?
No. Social Security benefits are listed by the Division of Taxation as exempt income.
What Is the New Jersey Personal Exemption?
The regular taxpayer exemption is $1,000. Additional exemptions can apply for age, disability, veteran status and qualifying dependents.
When Are New Jersey Estimated Payments Required?
Estimated payments are generally required when expected New Jersey tax due after withholding and credits exceeds $400.
Is New Jersey Withholding the Same as Final Income Tax?
No. Withholding is paid during the year while the annual return determines final tax after state exemptions, deductions and credits.