New Jersey State Income Tax: 2026 Brackets, Rates & Exemptions
New Jersey’s income tax is one of the quirkiest in the country: seven graduated brackets topping out at 10.75%, separate bracket tables for each filing status, and — the detail that surprises everyone — no standard deduction at all. If you’re used to other states’ rules, New Jersey will feel different.
This guide answers the questions New Jersey taxpayers actually ask: the 2026 brackets for each filing status, why married couples don’t get a simple doubling, what the modest personal exemptions cover, and the one group that gets a surprisingly sweet deal. Run your own numbers with the free New Jersey income tax calculator.
What are New Jersey’s income tax brackets in 2026?
New Jersey taxes income across seven graduated brackets, from 1.4% to 10.75% — the second-highest top rate in the nation. Single filers pay 1.4% to $20,000, 1.75% to $35,000, 3.5% to $40,000, 5.525% to $75,000, 6.37% to $500,000, 8.97% to $1 million, and 10.75% above that. Married joint filers use a genuinely different table with an extra 2.45% tier and shifted thresholds.
The joint schedule: 1.4% to $20,000, 1.75% to $50,000, 2.45% to $70,000, 3.5% to $80,000, 5.525% to $150,000, then 6.37%, 8.97%, and 10.75% at the same upper thresholds. Only the portion of income inside each bracket is taxed at that bracket’s rate.
Why doesn’t marriage just double the brackets?
Because New Jersey publishes two truly separate schedules rather than one table with a multiplier. The joint schedule adds a 2.45% tier that singles never see, and its thresholds shift — the 5.525% tier starts at $80,000 for joint filers versus $40,000 for singles.
Always compute with the schedule matching your filing status — the New Jersey income tax calculator applies the correct table automatically.
Does New Jersey have a standard deduction?
No — New Jersey is one of the few states with no standard deduction at all. Your taxable income is essentially your gross income minus only the personal exemption: $1,000 for a single filer, $2,000 for a joint return, plus $1,500 per dependent. Compared with states offering $12,000–$30,000 standard deductions, New Jersey leaves far more income exposed to tax at every level.
This is why New Jersey’s effective rates run higher than the friendly 1.4% starting bracket suggests. There’s no big chunk of income shielded before the rates apply — just the small exemption.
What are the NJ tax rate schedules for income over $100,000?
Once New Jersey taxable income reaches $100,000, the Division of Taxation’s official method switches from simple bracket math to precomputed tax rate schedules — stepwise formulas published in the GIT-1 instructions. In practice the schedules produce the same result as the bracket math for typical incomes. The schedules matter mainly at very high incomes, where they handle the top-tier computations precisely.
How does New Jersey treat retirement income?
Surprisingly well — this is New Jersey’s hidden tax break. Qualifying filers can exclude up to $100,000 (single) or $150,000 (joint) of pension and retirement income, and Social Security benefits are fully exempt. A retired couple with $140,000 of pension income could owe zero NJ tax, while a working couple at the same income pays the full schedule.
Worked example: $75,000 salary (single)
- Gross wages: $75,000
- Personal exemption (single): −$1,000
- NJ taxable income: $74,000 (no standard deduction)
- 1.4% × $20,000 = $280.00; 1.75% × $15,000 = $262.50; 3.5% × $5,000 = $175.00; 5.525% × $34,000 = $1,878.50
- NJ state tax: $2,596.00 (3.46% effective)
- Marginal rate on the next dollar: 5.525%
Confirm the math on your own income with the New Jersey income tax calculator — and toggle to married filing jointly to see how the separate schedule changes the result.
Frequently Asked Questions
Is New Jersey’s 10.75% the highest state income tax rate?
Second-highest. California’s 13.3% (including its mental health services surcharge) is the nation’s highest. New Jersey’s 10.75% applies to income over $1 million — a lower threshold than California’s, so it reaches more filers.
Does New Jersey have local income taxes?
No. New Jersey municipalities do not levy income taxes — the state return is the only income tax return most residents file. Cities fund themselves through famously high property taxes instead (New Jersey has the highest effective property tax rates in the country).
How much is the dependent exemption?
$1,500 per dependent, on top of the $1,000 single / $2,000 joint taxpayer exemption. Two children on a joint return add $3,000 of exemption — small, but every dollar of NJ taxable income saved is worth your marginal rate.
When is the 2026 New Jersey return due?
April 15, 2027. New Jersey’s individual return is Form NJ-1040. Estimated payments are due quarterly if you expect to owe more than withholding covers — common for the self-employed.
Do I owe NJ tax if I live in Pennsylvania but work in New Jersey?
Generally yes, to New Jersey on the NJ-source wages — but the PA/NJ reciprocity agreement lets Pennsylvania residents file in PA instead, and vice versa. NJ has reciprocity with Pennsylvania only. Commuters from New York get a credit on their home-state return instead.
How do I estimate my New Jersey tax?
Use the free New Jersey income tax calculator with the correct filing-status schedule built in. Comparing tri-state options? The New York income tax calculator shows the other side of the Hudson.
Estimates only — not tax advice. Verify with the NJ Division of Taxation or a tax professional.
