Income Tax for New Jersey (2026)

How This Calculator Works in New Jersey

This calculator applies New Jersey's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.

New Jersey Overview

New Jersey imposes a progressive income tax with 7 brackets and a top rate of 10.75% on income over $1 million (the permanent 'millionaire's tax'). The state also has the highest property taxes in the nation but offers a $15,000 state-level property tax deduction. A reciprocity agreement with Pennsylvania simplifies filing for cross-border commuters, while retirement income exclusions provide significant relief for seniors.

How New Jersey Compares

New Jersey's top income tax rate of 10.75% compares to New York at 10.9% and Pennsylvania at 3.07%. The rate differences can meaningfully impact take-home pay for workers near state borders.

New Jersey's income tax rate of 10.75% compares to a national average of approximately 5.04%. This is above the national average.

Tips for New Jersey Residents

• 1New Jersey's top income tax rate is 10.75% on income over $1 million (the 'millionaire's tax'), making it one of the highest in the country.
• 2NJ allows a property tax deduction of up to $15,000 on your state return — a significant benefit given that New Jersey has the highest property taxes in the nation.
• 3New Jersey has a reciprocal tax agreement with Pennsylvania: if you live in one state and work in the other, you only owe income tax to your state of residence.
• 4Retirement income is partially exempt: the first $100,000 of retirement income (for married filers 62+ with total income under $150,000) can be excluded from NJ taxable income.
• 5NJ does not tax Social Security benefits, and military pensions are fully exempt from state income tax.

Frequently Asked Questions