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New Jersey Income Tax Guide

Graduated 1.4%–10.75% ratesHigher portions of New Jersey taxable income move through higher rate bands.
$1,000 regular exemptionA taxpayer and an eligible spouse or civil-union partner can each receive the basic exemption.
State income categories matterNew Jersey does not simply copy federal adjusted gross income or federal deductions.
Official SourcesNJ tax ratesNJ deductionsNJ filing FAQIRS
NJ tax ratesNJ deductionsNJ filing FAQIRS
Calculate for New Jersey

How New Jersey taxes work

Gross income is organized by categoryNew Jersey calculates income under state-defined categories rather than starting directly from federal adjusted gross income.
Rates rise with taxable incomeThe calculator moves supported income through graduated bands instead of applying 10.75% to every dollar.
Regular exemptions reduce the estimateThe calculator includes $1,000 for a taxpayer and another $1,000 on a joint return; special exemptions remain outside.
Employee contributions are separateNew Jersey disability, family-leave, unemployment, and workforce payroll contributions are not included in this estimate.
Federal deductions may not carry overFederal treatment of items such as IRA contributions, tips, and overtime does not automatically determine New Jersey taxable income.

Common New Jersey tax questions

Is all income taxed at 10.75%?No. New Jersey uses graduated rates, so the top percentage applies only within the highest supported band.
Are senior, disability, veteran, or dependent exemptions included?No. The calculator includes only the basic taxpayer and eligible joint-spouse exemptions.
What about working in Pennsylvania?New Jersey and Pennsylvania have a wage-tax reciprocity agreement, but refund claims and credits require return-specific handling.
Is the pension exclusion included?No. Eligibility depends on age, income, filing status, and income type and must be reviewed separately.
Are part-year and nonresident returns modeled?No. The calculator is primarily a full-year resident estimate and does not allocate New Jersey-source income.
Is this the same as Form NJ-1040?No. It is a planning estimate using a simplified resident schedule, not a filed return or complete New Jersey calculation.