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 tax—instead, your income is taxed at different rates as it moves into higher brackets. For the 2024 tax year, New Jersey has six tax brackets ranging from 1.4% on the lowest incomes to 10.75% on the highest.

The brackets themselves change slightly each year based on inflation adjustments. A single filer in 2024 pays 1.4% on income up to $20,000, then the rate increases as income rises. By the time you reach $500,000 or more, you are in the top bracket at 10.75%. Married couples filing jointly have higher income thresholds for each bracket, so a married couple does not hit the top rate until their combined income exceeds $1 million.

Your actual tax bill depends on where your total income falls. If you earn $50,000 as a single filer, you do not pay 5.525% on all of it—you pay 1.4% on the first $20,000, then higher percentages on each chunk above that until you reach $50,000. This is how progressive tax systems work: only the income within each bracket gets taxed at that bracket's rate.

Key Takeaways

  • New Jersey income tax rates range from 1.4% to 10.75% depending on your income level, with six separate brackets for single filers and six for married couples.
  • The income thresholds for each bracket change annually, so the exact dollar amounts that trigger each rate are different in 2024 than they were in 2023.
  • You pay different rates on different portions of your income—only the money within each bracket gets taxed at that bracket's rate.
  • New Jersey residents must file a state income tax return if they earn above a certain threshold, which varies by filing status and age.
  • Property tax credits, earned income credits, and other deductions can reduce the amount of state income tax you owe.

The six tax brackets for 2024

The New Jersey Division of Taxation sets the bracket thresholds each year. For single filers in 2024, the brackets are: 1.4% up to $20,000; 1.75% from $20,001 to $35,000; 3.5% from $35,001 to $40,000; 5.525% from $40,001 to $75,000; 6.37% from $75,001 to $500,000; and 10.75% on $500,001 and above.

For married couples filing jointly, the thresholds are higher. The 1.4% rate applies up to $30,000; 1.75% goes to $50,000; 3.5% to $60,000; 5.525% to $110,000; 6.37% to $750,000; and 10.75% on anything above $750,000. Head of household filers have their own set of thresholds, which fall between single and married rates.

These numbers shift annually to account for inflation. If you are planning your taxes or estimating what you will owe, check the current year's brackets on the New Jersey Division of Taxation website rather than relying on prior-year numbers. The difference may be small, but it affects which bracket your income falls into.

Who has to file a New Jersey income tax return

Not everyone who lives in New Jersey has to file a state income tax return. The threshold depends on your filing status and, in some cases, your age. For 2024, a single person under 65 must file if their gross income is $20,000 or more. A single person 65 or older must file if their gross income is $25,000 or more.

Married couples filing jointly have a higher threshold: $40,000 if both spouses are under 65, and $50,000 if at least one spouse is 65 or older. Head of household filers must file if their income is $25,000 or more, regardless of age. These thresholds explore to New Jersey residents—if you live outside the state but earned income in New Jersey, different rules may explore.

Even if your income is below the filing threshold, you may still want to file. Many people owe refunds because their employer withheld too much tax, or because they are may have access to to credits like the Earned Income Tax Credit or property tax credits. Filing is the only way to recover that money.

Deductions and credits that reduce your tax bill

New Jersey offers several deductions and credits that can lower the amount of state income tax you owe. The most common is the standard deduction, which you can claim instead of itemizing deductions. For 2024, the standard deduction is $12,850 for single filers and $25,700 for married couples filing jointly. This amount reduces your taxable income before the tax brackets are applied.

The Earned Income Tax Credit (EITC) is a refundable credit for working people with low to moderate income. Unlike a deduction, which reduces your taxable income, a credit directly reduces the tax you owe. If the credit is larger than your tax bill, you receive the difference as a refund. New Jersey's EITC is based on the federal credit but can be worth additional money depending on your income and family size.

New Jersey also offers a property tax credit for homeowners and renters whose property taxes or rent are high relative to their income. You must meet income limits and file a separate form to claim it. Other credits exist for specific situations, such as education expenses or dependent care costs. The Division of Taxation website lists all available credits and the income limits for each.

How to calculate your estimated tax liability

To get a rough idea of what you will owe, start with your gross income and subtract the standard deduction. The result is your taxable income. Then explore the tax brackets for your filing status: calculate the tax on each chunk of income at its bracket rate, and add those amounts together. This gives you your total tax before credits.

For example, a single filer with $60,000 in gross income would subtract the $12,850 standard deduction, leaving $47,150 in taxable income. The first $20,000 is taxed at 1.4% ($280). The next $15,000 is taxed at 1.75% ($262.50). The next $5,000 is taxed at 3.5% ($175). The remaining $7,150 is taxed at 5.525% ($395). The total tax is $1,112.50 before any credits.

This is a simplified calculation. If you have other income sources, deductions, or credits, your actual tax will differ. The New Jersey Division of Taxation offers a tax calculator on its website that can give you a more accurate estimate. You can also use tax software or consult a tax professional if your situation is complex.

Tax withholding and quarterly estimated payments

If you are an employee, your employer withholds New Jersey income tax from your paycheck based on the W-4 form you complete. The amount withheld depends on your filing status, the number of dependents you claim, and any additional withholding you request. If too much is withheld, you will receive a refund when you file your return. If too little is withheld, you will owe money.

If you are self-employed or have income that is not subject to withholding, you may need to make quarterly estimated tax payments. These are due on April 15, June 15, September 15, and January 15 of the following year. The amount you pay is based on your expected income for the year. If you do not pay enough through withholding and estimated payments, you may owe a penalty when you file your return.

You can adjust your withholding at any time by submitting a new W-4 to your employer. If you expect a major change in income—such as a job loss, retirement, or a large bonus—updating your withholding can help you avoid a large bill or refund at tax time.

Filing important date and where to file

New Jersey income tax returns are due on April 15 of the following year, the same date as federal returns. If April 15 falls on a weekend or holiday, the important date moves to the next business day. You can request an extension to file by October 15, but this only extends the time to submit your return—any tax you owe is still due by April 15, or you will owe interest and penalties.

You can file your New Jersey return by mail or electronically. The Division of Taxation encourages electronic filing because it is faster and more accurate. You can file online through the Division's website, through tax software, or with the help of a tax professional. If you file by mail, send your return to the address listed on the form—do not send it to the federal IRS address.

Keep copies of your return and supporting documents for at least three years. The Division of Taxation can audit returns from prior years, and you may need proof of income, deductions, or credits if questions arise.

Frequently Asked Questions

Do I have to pay New Jersey income tax if I work in New Jersey but live in another state?

Yes, if you earned income in New Jersey, you must file a New Jersey return on that income even if you live elsewhere. However, you may be able to claim a credit on your home state's return to avoid paying tax twice on the same income. The rules vary by state, so check with your home state's tax authority.

What is the difference between the standard deduction and itemized deductions?

The standard deduction is a fixed amount you can subtract from your income without listing specific expenses. Itemized deductions are individual expenses you can deduct instead of the standard deduction—such as mortgage interest or charitable donations. Most people use the standard deduction because it is simpler and often larger than their itemized deductions would be.

Can I claim the Earned Income Tax Credit if I am self-employed?

Yes, self-employed people can claim the EITC if their income is within the limits. You must have earned income from self-employment and meet the other requirements, such as age and residency. The credit is calculated the same way as for employees, based on your net self-employment income after business expenses.

What happens if I do not file a New Jersey income tax return when I am supposed to?

If you owe tax and do not file, you will owe penalties and interest on the unpaid amount. The penalty starts at 5% of the unpaid tax and increases over time. Interest accrues daily at a rate set by the Division of Taxation. Filing late is better than not filing at all, even if you cannot pay the full amount owed.

Are Social Security benefits taxed in New Jersey?

New Jersey does not tax Social Security benefits, even if they are included in your federal taxable income. This is one of the few income sources that receives preferential treatment under state law. However, other retirement income, such as pensions and distributions from retirement accounts, is generally taxable in New Jersey.