New Jersey Income Tax Calculator 2026

How New Jersey taxable income is calculated

New Jersey does not start from your federal return. It uses its own definition of gross income and has no standard deduction. Instead, you subtract exemptions: $1,000 for yourself, $1,000 for a spouse, $1,500 for each dependent, an extra $1,000 if you are 65 or older or blind/disabled, and $6,000 if you are an honorably discharged veteran.

There are two rate schedules. Single and married-filing-separately filers use one table with seven rates; married couples filing jointly, heads of household and qualifying widow(er)s use a second table with eight rates and wider lower brackets. Both top out at 10.75% on taxable income over $1,000,000.

Worked example: $90,000 single filer

A single filer with $90,000 of wages subtracts one $1,000 exemption for New Jersey taxable income of $89,000:

• New Jersey tax: $3,543, or 3.94% of gross wages.
• A head of household with the same income would use the second table, where the 2.45% bracket runs from $50,000 to $70,000, so the bill would be lower.

Retirement income: what New Jersey taxes and excludes

New Jersey does not tax Social Security, Railroad Retirement or U.S. military pensions. Most other pensions, annuities and IRA withdrawals are taxable — including state, local and federal civil service pensions — although the taxable amount can differ from your federal figure, especially for contributory plans where you already paid tax on your contributions.

If you (or your spouse on a joint return) were 62 or older or disabled at the end of the year and your total income was $150,000 or less, the pension exclusion can shelter some or all of that income:

Filing your New Jersey return

Residents file Form NJ-1040 by April 15. Part-year residents also file NJ-1040, reporting income received while a resident, and nonresidents with New Jersey-source income file NJ-1040NR. Nonresidents do not owe New Jersey tax on pension, annuity or IRA income.

• Pennsylvania residents with only New Jersey wages owe no New Jersey tax under the reciprocal agreement, but must file NJ-1040NR to get back any New Jersey tax that was withheld.
• Pre-tax 401(k) deferrals are excluded from New Jersey wages, but many other federal adjustments are not allowed, so your New Jersey income is often higher than your federal AGI.
• Credits such as the New Jersey Child Tax Credit, earned income tax credit and property tax deduction or credit can lower your bill but are not modeled by the calculator above.