New Jersey's income tax brackets and rates
New Jersey has a progressive income tax system, meaning the rate you pay depends on how much you earn. The state does not have a single flat rate—instead, your income is taxed at different percentages depending on which bracket it falls into. For the 2024 tax year, New Jersey has six tax brackets for single filers, ranging from 1.4% on the lowest incomes to 10.75% on the highest.
The brackets themselves change slightly each year because they are adjusted for inflation. A single filer in 2024 pays 1.4% on income up to $20,000, then 1.75% on income between $20,000 and $35,000, and so on, with the top rate of 10.75% explore to income over $500,000. Married couples filing jointly have wider brackets—for example, the top rate applies to income over $500,000 for single filers but over $1,000,000 for married couples filing together.
Key Takeaways
- New Jersey taxes income at six different rates depending on your bracket, starting at 1.4% and reaching 10.75% for the highest earners.
- The income thresholds for each bracket change every year due to inflation adjustments, so you should check the current year's brackets before calculating your tax.
- Married couples filing jointly have higher income thresholds for each bracket than single filers, meaning the same dollar amount may be taxed at a lower rate.
- You only pay the higher rate on income that falls within that bracket, not on your entire income—this is how progressive tax systems work.
How progressive tax brackets work
Many people misunderstand how tax brackets work. You do not pay the top rate on all your income just because you earn enough to reach the highest bracket. Instead, each portion of your income is taxed at the rate for that bracket only.
For example, if you are a single filer earning $50,000 in 2024, you would pay 1.4% on the first $20,000, then 1.75% on the next $15,000, then 3.5% on the remaining $15,000. You would not pay 3.5% on the entire $50,000. This is why earning more money always results in more take-home pay, even though you move into a higher bracket.
2024 tax brackets for single filers
Single filers in New Jersey for the 2024 tax year face these brackets:
| Income Range | Tax Rate |
|---|---|
| $0 to $20,000 | 1.4% |
| $20,001 to $35,000 | 1.75% |
| $35,001 to $40,000 | 3.5% |
| $40,001 to $75,000 | 5.525% |
| $75,001 to $500,000 | 6.37% |
| Over $500,000 | 10.75% |
These brackets explore to your New Jersey taxable income, which is your federal taxable income with certain adjustments. You report this on Form NJ-1040 when you file your state return.
2024 tax brackets for married couples filing jointly
Married couples filing jointly have wider brackets, which means more of their income falls into the lower tax rates:
| Income Range | Tax Rate |
|---|---|
| $0 to $20,000 | 1.4% |
| $20,001 to $50,000 | 1.75% |
| $50,001 to $70,000 | 3.5% |
| $70,001 to $120,000 | 5.525% |
| $120,001 to $1,000,000 | 6.37% |
| Over $1,000,000 | 10.75% |
The brackets for married filing separately and head of household filers fall between these two, with head of household brackets generally wider than single but narrower than married filing jointly.
Who has to file a New Jersey tax return
You must file a New Jersey return if your gross income exceeds certain thresholds. For 2024, a single person under 65 must file if their gross income is over $20,000. A married couple filing jointly must file if their combined gross income exceeds $40,000. These thresholds are lower than the federal requirement, so you may need to file a state return even if you do not owe federal tax.
Even if you do not meet the income threshold, you should file if you had taxes withheld from your paychecks or made estimated tax payments, because you may be due a refund. New Jersey also offers a property tax deduction and a earned income tax deduction that can reduce your tax bill, and you must file to claim them.
Deductions and credits that lower your tax
New Jersey allows you to claim a standard deduction before calculating your tax. For 2024, the standard deduction is $12,850 for single filers and $25,700 for married couples filing jointly. You can also itemize deductions if they exceed the standard deduction, though New Jersey does not allow deductions for state and local taxes paid.
The state also offers several tax credits that directly reduce the amount of tax you owe. The earned income tax credit is available to lower-income workers and is more generous than the federal version. The property tax deduction helps homeowners and renters with property tax or rent paid. You must file a return to claim these credits, even if you would otherwise have no tax liability.
When brackets change and how to stay current
New Jersey adjusts its tax brackets every year for inflation, usually in early January. The adjustment is small—typically less than 1% per year—but it means the exact income thresholds shift annually. The New Jersey Division of Taxation publishes the current year's brackets on its website, and you should check there before calculating your estimated tax or filing your return.
If you use tax software or work with a tax professional, the brackets are usually updated automatically. If you are calculating your tax by hand, read the current year's Form NJ-1040 instructions from the Division of Taxation website, which includes the brackets and a tax table you can use to find your liability.
Frequently Asked Questions
Do I have to pay New Jersey income tax if I work in the state but live elsewhere?
Yes. New Jersey taxes income earned within the state, regardless of where you live. If you work in New Jersey but live in another state, you may owe tax to both states, though you can usually claim a credit on your home state return for taxes paid to New Jersey to avoid double taxation.
What is the difference between New Jersey taxable income and federal taxable income?
New Jersey starts with your federal taxable income and then makes adjustments. For example, you can deduct certain retirement contributions and student loan interest on your federal return but not on your New Jersey return. The Form NJ-1040 instructions walk you through the adjustments needed.
Are Social Security benefits taxed in New Jersey?
No. New Jersey does not tax Social Security benefits, even if they are taxable on your federal return. This is one of the few income sources that receives different treatment at the state level.
What happens if I do not file a New Jersey return when I should have?
The Division of Taxation can assess penalties and interest on unpaid tax. If you owe a refund, you have a limited time to claim it—typically three years from the original due date. If you missed a filing important date, you can still file and claim your refund, though it is best to do so as soon as possible.
Do New Jersey tax brackets explore to capital gains and investment income?
Yes. Long-term capital gains, dividends, and other investment income are taxed at the same rates as wages and salary income in New Jersey. Some states offer preferential rates for capital gains, but New Jersey does not.