New Jersey Income Tax Calculator 2026
See your New Jersey state tax, effective rate, and take-home pay in 60 seconds.
- The Pension and Retirement Income Exclusion is not applied, which can substantially overstate tax for qualifying retirees.
- New Jersey EITC and the Child and Dependent Care Credit are not applied.
- Employee contribution rates for TDI, FLI and UI are reset annually and are modeled at the current published rates.
- Previously-taxed contribution basis in IRAs and 401(k)s is not tracked, so distributions may be overstated.
Estimated federal and state take-home pay based on the information entered. Local taxes, state payroll programs, employer benefits, itemized deductions, tax credits, and special state adjustments may not be included. Tax year 2026. New Jersey figures last verified July 17, 2026 — see sources below.
Worked example: A single filer earning $85,000 in New Jersey
Start with $85,000 of wages. After $1,000 in modeled state deductions/exemptions, running it up New Jersey's brackets produces about $3,225 in state income tax — an effective state rate near 3.8%, with a 6.37% marginal rate. Federal income tax and FICA are calculated separately and shown in the calculator above.
Assumes a single filer taking the standard treatment. Figures are educational estimates.
How New Jersey taxes income
New Jersey uses a graduated income tax: your income is taxed in slices, with each slice taxed at a higher rate as you move up the brackets from 1.4% to 10.75%.
New Jersey generally starts from your federal income, applies state-specific adjustments and deductions, and then runs the result up the brackets. Credits and exemptions can change the final number — confirm the current details with the New Jersey Division of Taxation.
2026 rate structure
| Rate | Single — taxable income up to | MFJ — taxable income up to |
|---|---|---|
| 1.40% | $20,000 | $20,000 |
| 1.75% | $35,000 | $50,000 |
| 3.50% | $40,000 | $70,000 |
| 5.53% | $75,000 | $80,000 |
| 6.37% | $500,000 | $150,000 |
| 8.97% | $1,000,000 | $500,000 |
| 10.75% | and above | $1,000,000 |
Retirement income & Social Security
New Jersey retirement income treatment varies by plan type, your age, and whether the distribution is qualifying. Many states exempt some or all 401(k), IRA and pension income for retirees, and this calculator does not model those exclusions. Check the New Jersey Division of Taxation for the rules that apply to you before assuming distributions are taxable.
Local taxes & reciprocity
New Jersey has no local or city income tax — only the state income tax applies to wages.
Reciprocity: New Jersey has no income tax reciprocity agreements. If you work across state lines, you generally file a non-resident return where you work and claim a credit to avoid double taxation.
Notable deductions, credits & other taxes
Deductions & credits
- New Jersey standard deduction and personal exemptions (verify current amounts with the New Jersey Division of Taxation)
- Credit for income taxes paid to other states (for residents with out-of-state income)
- State versions of common credits — earned income, child/dependent care, and education credits — where offered
Capital gains: New Jersey has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at New Jersey's graduated rates.
Property tax: Property taxes in New Jersey are assessed and collected locally, so effective rates vary widely by county and municipality. Check your county assessor or the New Jersey Division of Taxation for local rates.
New Jersey vs. neighboring states
Compared with its neighbors — Delaware, New York, Pennsylvania — New Jersey's graduated rates up to 10.75% sit within the regional range. Effective rates depend heavily on income level, deductions, and local taxes.
New Jersey state tax FAQs
What is the New Jersey state income tax rate for 2026?
New Jersey uses graduated brackets ranging from 1.4% to 10.75%, with higher rates applying only to income above each threshold.
Does New Jersey tax retirement income or Social Security?
Social Security benefits are exempt from New Jersey income tax. Treatment of other retirement income depends on the plan type, your age, and whether the distribution is qualifying — many states exempt some or all of it for retirees. This calculator does not model those exclusions, so verify with the New Jersey Division of Taxation rather than assuming your distributions are fully taxable.
How are capital gains taxed in New Jersey?
New Jersey has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at New Jersey's graduated rates.
Is there a local or city income tax in New Jersey?
New Jersey has no local or city income tax — only the state income tax applies to wages.
Does New Jersey have tax reciprocity with neighboring states?
New Jersey has no income tax reciprocity agreements. If you work across state lines, you generally file a non-resident return where you work and claim a credit to avoid being taxed twice.
Sources & verification
Last verified July 17, 2026.