New Jersey State Income Tax Filing
1.4% to 10.75%
Top marginal rate
10.75% above $1 million
Standard deduction
None — New Jersey uses exclusions instead
Personal exemption
$1,000 single / $2,000 joint, plus $1,500 per dependent
Bracket structure
Single and joint schedules genuinely differ, not simply doubled
New Jersey income tax at a glance
New Jersey has one of the highest top rates in the country and, unusually, no standard deduction at all — it works from gross income with specific exclusions rather than a broad deduction, which is why a New Jersey return does not resemble the federal one you just finished. The single-filer and joint bracket structures are also genuinely different rather than one being double the other, so filing status changes more here than in most states. For a very large share of New Jersey filers, though, the material issue is New York. If you live in New Jersey and work in Manhattan you file in both states and claim a credit in New Jersey for tax paid to New York. The credit is not automatic and it is not always the full amount, and getting the allocation and the credit calculation right is usually worth more than every other line on the return combined.
New Jersey tax rates
| Rate | Taxable income |
|---|---|
| 1.4% | $0 – $20,000 |
| 1.75% | $20,000 – $35,000 |
| 3.5% | $35,000 – $40,000 |
| 5.53% | $40,000 – $75,000 |
| 6.37% | $75,000 – $500,000 |
| 8.97% | $500,000 – $1,000,000 |
| 10.75% | $1,000,000 and over |
New Jersey tax rates for single filers: 1.4% from $0 to $20,000; 1.75% from $20,000 to $35,000; 3.5% from $35,000 to $40,000; 5.53% from $40,000 to $75,000; 6.37% from $75,000 to $500,000; 8.97% from $500,000 to $1,000,000; 10.75% above $1,000,000.
New Jersey tax rates for married filing jointly: 1.4% from $0 to $20,000; 1.75% from $20,000 to $50,000; 2.45% from $50,000 to $70,000; 3.5% from $70,000 to $80,000; 5.53% from $80,000 to $150,000; 6.37% from $150,000 to $500,000; 8.97% from $500,000 to $1,000,000; 10.75% above $1,000,000.
- Personal exemption
- $1,000 single, $2,000 joint, $1,500 per dependent
Rates and thresholds as of . State legislatures change these mid-year and several states index brackets annually — check against New Jersey Division of Taxation before relying on a figure.
What to watch out for in New Jersey
- New Jersey does not conform closely to the federal definition of income. Contributions and deductions that reduce your federal taxable income — including some retirement contributions — may not reduce New Jersey income, which is why your state taxable income can exceed your federal figure.
- New Jersey and New York have no reciprocity agreement. Commuters file in both states and rely on the resident credit rather than being exempted from one.
- The credit for tax paid to another state is limited to what New Jersey would have charged on that income. Where New York tax is higher, the excess is not recovered.
- New Jersey does not allow a deduction for capital losses against ordinary income in the way federal rules do, and treats several investment items differently. Investment income is worth reviewing separately rather than carrying the federal numbers across.
Forms and deadlines
- Which form
- Form NJ-1040 for residents, Form NJ-1040NR for non-residents
- Deadline
- Aligns with the federal deadline.
- State authority
- New Jersey Division of Taxation
Federal deadlines are separate from state ones. Our US tax deadlines page covers the federal calendar, and the federal tax brackets apply on top of whatever New Jersey charges.
Where these figures come from
Rates, bracket floors, standard deductions and exemptions are taken from the compilation below, stated as of January 1, 2026 and built from state statutes, forms and instructions. The state authority is always the final word on your own position.
Reviewed by Teja K, CPA · last reviewed . General information, not tax advice for your situation. State tax law changes frequently — confirm before acting.
New Jersey tax questions
What is the New Jersey income tax rate?
New Jersey uses graduated brackets from 1.4% up to 10.75%, with the top rate applying above $1 million of taxable income. The single and married-filing-jointly schedules have different structures rather than the joint bands simply being double the single ones. Figures are as of January 1, 2026.
I live in New Jersey and work in New York. Where do I pay tax?
Both, but not twice on the same income. New York taxes the wages you earn for work performed there through a non-resident return, and New Jersey taxes you as a resident on all your income while giving a credit for the tax you paid New York. Because New York rates are often higher, the credit frequently covers the whole New Jersey liability on that income — but the calculation has to be done properly, and it is the most common source of error on New Jersey returns.
Does New Jersey have a standard deduction?
No. New Jersey taxes gross income with specific exclusions and deductions rather than granting a broad standard deduction, so the concept does not carry across from your federal return. There are personal exemptions — $1,000 for a single filer, $2,000 filing jointly, and $1,500 for each dependent — plus deductions for particular items such as significant medical expenses and property tax.
Why is my New Jersey taxable income higher than my federal?
Because New Jersey does not follow the federal rules on what reduces income. Certain retirement plan contributions that are pre-tax federally are not for New Jersey purposes, and the state grants no standard deduction. This is normal rather than an error, but it does mean a New Jersey return cannot be produced by copying federal figures across.
Do I need to file a New Jersey return if I moved out during the year?
Yes, as a part-year resident, reporting income received while you were a New Jersey resident. If you continued to earn New Jersey-source income after leaving — from property in the state or work performed there — that stays taxable to New Jersey as well. Both parts are reported, and the allocation between them is what determines the outcome.
We file New Jersey returns alongside your federal
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