New Jersey has a progressive income tax from 1.4% to 10.75%. Most earners under $500k pay an effective NJ rate well below the headline number. See your exact take-home pay.
New Jersey's top 10.75% rate only applies to income above $1,000,000. A single filer earning $75,000 has an effective NJ state tax rate of about 3.5% — lower than many flat-tax states. NJ has no standard deduction, only a $1,000 personal exemption for single filers. New Jersey also does not tax most Social Security benefits or pension income, making it more favorable for retirees than the headline rate suggests.
| Income (Single) | Income (Married) | Rate |
|---|---|---|
| $0 – $20,000 | $0 – $20,000 | 1.400% |
| $20,001 – $35,000 | $20,001 – $50,000 | 1.750% |
| $35,001 – $40,000 | $50,001 – $70,000 | 2.450% / 3.500% |
| $40,001 – $75,000 | $80,001 – $150,000 | 5.525% |
| $75,001 – $500,000 | $150,001 – $500,000 | 6.370% |
| $500,001 – $1,000,000 | $500,001 – $1,000,000 | 8.970% |
| Over $1,000,000 | Over $1,000,000 | 10.750% |
Personal exemption: $1,000 (single) · $2,000 (married) · $1,500 (head of household). No standard deduction.
Estimates only. NJ progressive brackets 1.4%–10.75%. Personal exemption: $1,000 (single) / $2,000 (married). No NJ standard deduction. Consult a tax professional for advice.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| New Jersey State Tax | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
New Jersey has a progressive income tax with seven brackets ranging from 1.4% to 10.75% for 2026. The rate you pay depends on your taxable income. Most workers earning $40,000–$500,000 fall into the 5.525% or 6.37% brackets. The feared 10.75% rate only applies to income exceeding $1,000,000.
Four taxes come out of a New Jersey paycheck: federal income tax (progressive, based on your W-4), New Jersey state income tax (1.4%–10.75% progressive), Social Security (6.2% up to $184,500), and Medicare (1.45% on all wages). Unlike Pennsylvania, NJ has no statewide local income tax — Newark and other cities do not add a local income tax on employees.
No. New Jersey does not have a standard deduction. The only reduction to your NJ taxable income is a personal exemption — $1,000 for single filers, $2,000 for married filing jointly, and $1,500 for head of household. This is much smaller than the federal standard deduction ($16,100 for single filers), meaning NJ taxes a larger share of your gross income than federal does.
A single filer earning $75,000 in New Jersey has NJ taxable income of $74,000 (after the $1,000 exemption). The top marginal bracket is 6.37% (income from $75,001–$500,000), but the effective NJ rate works out to about 3.5% of gross income because the lower brackets (1.4%, 1.75%, 3.5%, 5.525%) apply to the first $75,000. That's roughly $2,600 in NJ state tax per year.
New Jersey and New York have comparable top marginal rates (NJ 10.75%, NY 10.9%), but NJ's middle brackets are somewhat more favorable. A single earner at $75,000 pays roughly $2,600 in NJ state tax versus $3,900 in New York state tax. However, most NY-area NJ residents who commute to NYC also owe NYC local income tax (up to 3.876%), which can erase NJ's advantage entirely for city workers.
New Jersey has a partial retirement income exclusion. NJ does not tax Social Security benefits. For pension and retirement account income, NJ allows an exclusion of up to $75,000 for single filers (or $100,000 for married filing jointly) if your total income is under $100,000. Above that threshold, the exclusion phases out. Retirees with modest incomes can pay very little NJ state tax.
No. New Jersey does not have a local income tax on employees. Newark and other cities may have various business taxes, but individual workers do not pay a local income tax in NJ. This contrasts with neighboring Pennsylvania, where most municipalities levy a local Earned Income Tax of 1–2%, and New York, where NYC residents pay an additional 3.078%–3.876% city income tax.
Traditional 401(k) contributions reduce your federal taxable income, and they also reduce your New Jersey taxable income. Unlike Pennsylvania, NJ does allow the 401(k) pre-tax deduction for state purposes. Contributing $10,000 to a 401(k) saves you roughly $553–$637 in NJ state tax depending on your bracket, on top of the federal savings. NJ does tax 401(k) distributions in retirement (unlike PA, which exempts them).