Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and New Jersey state tax rates. Always consult a qualified tax professional.
New Jersey income tax overview
New Jersey has one of the highest top income tax rates in the US at 10.75%, though most middle-income earners pay between 3.5% and 6.37%. NJ is unique — it offers no standard deduction, instead using a personal exemption of $1,000 per person. Despite high taxes, NJ workers benefit from proximity to New York City and Philadelphia job markets with some of the highest average wages in the country. NJ also has a separate tax on wages called the Gross Income Tax, which funds state services independently of property taxes.
2026 New Jersey income tax rates
Tax rate
Income range (single filer)
1.4%
$0 – $20,000
1.75%
$20,001 – $35,000
3.5%
$35,001 – $40,000
5.525%
$40,001 – $75,000
6.37%
$75,001 – $500,000
8.97%
$500,001 – $1,000,000
10.75%
Over $1,000,000
Worked example: $75,000 salary in New Jersey
A $75,000 salary in New Jersey results in approximately $4,778 in state income tax (effective ~6.37%), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $51,904, or $1,997 bi-weekly.
Key facts: 6.37% on $75K income · No standard deduction · No Social Security tax
Frequently asked questions — New Jersey income tax
No. New Jersey does not tax Social Security benefits. This is one of the few tax-friendly aspects of NJ for retirees, offsetting the otherwise high income tax rates.
No. Unlike most states, New Jersey does not have a standard deduction. Instead it uses personal exemptions of $1,000 per taxpayer and $1,500 per dependent. This means more of your income is subject to NJ tax compared to states with generous standard deductions.
When selling a home in New Jersey and moving out of state, sellers must prepay estimated NJ income tax on the gain — either 8.97% of the gain or 2% of the sale price, whichever is higher. This is a withholding, not an extra tax — you reconcile it when you file your final NJ return.
No. New Jersey municipalities do not levy local income taxes. Newark had a payroll tax but it applies to employers, not employees directly.
NJ taxes most retirement income including pensions, 401k distributions, and IRA withdrawals. However, taxpayers aged 62+ with income under $150,000 can exclude up to $75,000 in pension income from NJ tax — a significant benefit for retirees.
Compare New Jersey to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.