New Jersey Income Tax Rates and Brackets

Tax Rates

New Jersey Income Tax Rates

New Jersey uses eight rate percentages across its two individual income tax schedules: 1.4%, 1.75%, 2.45%, 3.5%, 5.525%, 6.37%, 8.97%, and 10.75%. The New Jersey Division of Taxation publishes Table A for Single and Married Filing Separately taxpayers and Table B for Married Filing Jointly, Head of Household, and Qualifying Surviving Spouse taxpayers. The table below combines both schedules, including the 2.45% rate that appears only in Table B. Each rate applies only to the portion of taxable income within that bracket. Reaching a higher bracket does not cause all of your income to be taxed at the higher rate.

New Jersey's top 10.75% rate, sometimes called the millionaire's tax, is a regular bracket rather than a separate surtax. It applies to taxable income over $1 million for every filing status. The $500,000 and $1 million thresholds are not doubled for joint filers, which can create a marriage penalty for higher-income couples.

Deductions

New Jersey Income Tax Deductions

New Jersey does not use the same standard-versus-itemized deduction system as the federal income tax return. Instead, taxpayers calculate New Jersey taxable income using state-specific exclusions, exemptions, and deductions. These items are reported on Form NJ-1040 or its supporting schedules and reduce the income to which the New Jersey tax brackets and rates are applied.

New Jersey provides personal and dependent exemptions along with deductions for certain qualifying expenses. The available amounts and rules do not always match their federal counterparts. The following sections explain New Jersey's standard deduction, personal and dependent exemptions, and treatment of itemized deductions for 2026.

New Jersey Standard Deduction

New Jersey does not provide a general standard deduction. A taxpayer cannot subtract the federal standard deduction when calculating New Jersey taxable income. Instead, the New Jersey return allows the specific exemptions, exclusions, and deductions authorized under state law.

New Jersey Personal Exemptions

New Jersey provides a $1,000 regular exemption for the taxpayer and, on a joint return, another $1,000 for a spouse or civil union partner. New Jersey also offers one additional $1,000 exemption for being age 65 or older and another $1,000 exemption for being blind or disabled. Each may be claimed for a qualifying taxpayer or spouse. A qualifying veteran may claim an additional $6,000 exemption. These exemptions reduce New Jersey taxable income rather than directly reducing the calculated tax.

New Jersey Dependent Exemptions

New Jersey provides a $1,500 exemption for each qualifying dependent. An additional $1,000 exemption may be available for a dependent under age 22 who attends college full-time and meets the State's other requirements. These exemptions reduce taxable income before the New Jersey income tax is calculated.

New Jersey Itemized Deductions

New Jersey does not allow a federal-style choice between the standard deduction and itemizing deductions. The total reported on federal Schedule A does not transfer to the New Jersey return. New Jersey instead allows specific deductions, including qualifying medical expenses above 2% of New Jersey gross income, certain self-employed health insurance costs, qualifying alimony payments, and eligible organ or bone marrow donation expenses.

Other state deductions may apply for qualifying conservation contributions, business-income adjustments, and eligible NJBEST contributions, NJCLASS loan payments, or tuition paid to an in-state institution. Eligible homeowners and tenants may claim either the New Jersey property tax deduction or the refundable property tax credit, whichever provides the greater benefit. The 2026 estimated-tax worksheet lists the deductions used to calculate New Jersey taxable income, while the final NJ-1040 instructions will provide the annual filing details.

Credits

New Jersey State Tax Credits

New Jersey offers refundable and nonrefundable tax credits that directly reduce state income tax. A refundable credit can produce or increase a refund even when no New Jersey income tax is owed. A nonrefundable credit can reduce tax to zero but cannot by itself create a refund. Eligibility depends on income, filing status, family circumstances, qualifying expenses, residency, and other requirements. Several important New Jersey tax credits available under current law for 2026 include:

New Jersey Earned Income Tax Credit (NJEITC)

The refundable New Jersey Earned Income Tax Credit is generally equal to 40% of the federal earned income tax credit for 2026. A taxpayer must qualify under the applicable earned-income, residency, filing-status, and identification-number rules and file Form NJ-1040 to claim the credit. Taxpayers claiming the federal credit with qualifying children use federal Schedule EIC to report information about those children.

New Jersey Child Tax Credit

The refundable New Jersey Child Tax Credit is temporarily increased for the 2026 through 2028 tax years. For 2026, the credit ranges from $250 to $1,250 for each qualifying child under age six, depending on New Jersey taxable income. The maximum $1,250 credit applies when taxable income is $30,000 or less, and smaller amounts apply through the $80,000 income limit. A married taxpayer generally must file a joint return unless eligible to file as Head of Household or Qualifying Surviving Spouse.

New Jersey Child and Dependent Care Credit

The refundable New Jersey Child and Dependent Care Credit may be available to a resident who is allowed the federal child and dependent care credit calculated on federal Form 2441 and has New Jersey taxable income of $150,000 or less. The State credit ranges from 10% to 50% of the federal credit, with the percentage decreasing as New Jersey taxable income increases.

New Jersey Property Tax Credit

Eligible New Jersey homeowners and tenants may claim either the state property tax deduction or the refundable property tax credit, whichever provides the greater benefit. The result depends on the taxpayer's property taxes or rent, taxable income, and resulting state tax. This income-tax benefit is separate from New Jersey's ANCHOR, Senior Freeze, and Stay NJ property-tax relief programs. Those programs have separate eligibility and application rules and are not claimed as part of the annual Form NJ-1040 income tax return.

Credit for Taxes Paid to Other Jurisdictions

A New Jersey resident whose income is taxed by both New Jersey and another state, city, or other qualifying jurisdiction may claim a limited nonrefundable credit using Schedule NJ-COJ. New Jersey residents who work in New York may qualify for this credit when New York State income tax is paid on wages also taxed by New Jersey. The credit cannot exceed the New Jersey tax attributable to the income taxed by both jurisdictions. The New Jersey and Pennsylvania reciprocal agreement generally prevents a credit for Pennsylvania state income tax on wages, although other Pennsylvania income and Philadelphia wage tax may qualify.

Due Dates

New Jersey State Income Tax Deadline

The deadline to file a 2026 New Jersey individual income tax return and pay any balance due is generally April 15, 2027. New Jersey generally grants a six-month filing extension through October 15, 2027, but the extension does not postpone the April deadline for paying tax owed. Taxpayers generally must have at least 80% of their New Jersey tax liability paid by the original deadline for the State to accept the extension. Interest and penalties may apply to unpaid balances after the original due date.

If you missed a New Jersey filing deadline, do not assume it is too late. You may still be able to file a current or prior-year return and claim any refund due, subject to New Jersey's time limits for refund claims. Visit our New Jersey state tax forms page to find Form NJ-1040, instructions, and other forms for current and prior tax years.