How to Use This Calculator
Enter your income, filing status, and any deductions. The calculator computes your New Jersey state income tax alongside your federal tax, showing exactly how much goes to each and what you take home.
The most useful thing to try? Compare different income levels to see how New Jersey's brackets affect your tax bill, then look at how combined federal + state taxes shape your total take-home pay.
Here's what each field means:
Annual Income is your total earnings before any taxes. Include wages, freelance income, investment income, and any other sources.
Filing Status determines which set of tax brackets and deductions apply. New Jersey uses filing statuses similar to the federal system — single, married filing jointly, married filing separately, and head of household.
New Jersey Income Tax: What You Need to Know
New Jersey uses a progressive income tax system with rates ranging from 1.4% to 10.75%. Like the federal system, this means your income is taxed in layers — each bracket only applies to the income within that range, not your entire income.
New Jersey Tax Brackets (Single Filers)
| Taxable Income | Tax Rate |
|---|---|
| $0 - $20,000 | 1.4% |
| $20,000 - $35,000 | 1.75% |
| $35,000 - $40,000 | 3.5% |
| $40,000 - $75,000 | 5.525% |
| $75,000 - $500,000 | 6.37% |
| $500,000 - $1,000,000 | 8.97% |
| $1,000,000+ | 10.75% |
A Real Example
Let's say you're a single filer earning $85,000 in New Jersey. After applying the standard deduction, your income flows through each bracket:
Your approximate New Jersey state income tax would be around $3,586, for an effective state tax rate of about 4.2%.
Remember, this is just the state portion. You'll also owe federal income tax and FICA taxes on top of this.
Deductions and Exemptions
Deductions: New Jersey uses its own system of exemptions and deductions rather than a traditional standard deduction.
Personal exemption of $1,000. Property tax deduction or credit. New Jersey offers exclusions for retirement income (up to $100,000 for those 62+ with qualifying income under $150,000). The state also has its own earned income tax credit (40% of federal EITC).
Local Taxes
No local income taxes in New Jersey (though property taxes are the highest in the nation, averaging about 2.23% of home value).
What's Unique About New Jersey
New Jersey has relatively low rates on modest incomes (1.4% on the first $20,000) but high rates on top earners (10.75% over $1 million — one of the highest in the nation). The state doesn't have a standard deduction; instead, it uses personal exemptions of $1,000 per person. New Jersey does not tax Social Security benefits and offers exclusions on retirement income for those 62+ with income below $150,000. New Jersey also does not allow itemized deductions the way the federal system does — the state has its own limited set of deductions.
Recent Changes
The 10.75% top bracket on millionaires was made permanent in recent years. New Jersey has been expanding its retirement income exclusion and EITC.
How to Use This Calculator Strategically
Model a raise or job change. See how additional income moves through New Jersey's brackets and affects your effective tax rate.
Compare filing statuses. If you're married, run the numbers both jointly and separately. The better option depends on your specific income situation.
Plan your deductions. Test how maximizing retirement contributions or other deductions affects your New Jersey tax bill.
Evaluate a move. Compare New Jersey's rates to other states you're considering. The difference in take-home pay might surprise you.
References
- New Jersey Division of Taxation. (2025). Income Tax.
This calculator is for educational purposes only and does not constitute tax or financial advice. Tax rates, brackets, and rules change regularly. Consult a qualified tax professional for guidance specific to your situation.