Basic Info
Deductions
Insurance Premiums
Your New Jersey Paycheck Results
Calculating your paycheck…
Take-Home Pay:
$0.00
Per Pay Period:
$0.00
Tax Breakdown
Federal Income Tax:
$0.00
State Income Tax (NJ):
$0.00
Social Security:
$0.00
Medicare:
$0.00
Additional Medicare:
$0.00
Total Tax:
$0.00
Deduction Breakdown
401(k) Contribution:
$0.00
Traditional IRA:
$0.00
HSA Contribution:
$0.00
FSA Contribution:
$0.00
Health Insurance:
$0.00
Dental Insurance:
$0.00
Vision Insurance:
$0.00
Other Deductions:
$0.00
Total Deductions:
$0.00
Gross Annual Income:
$0.00
Effective Tax Rate:
0.00%
New Jersey State Income Tax Information
New Jersey employs a progressive income tax system with rates ranging from 1.4% to 10.75% for the 2025 tax year. The highest rate applies to income over $1,000,000.
Tax Brackets for 2025
| Taxable Income | Tax Rate |
|---|---|
| Up to $20,000 | 1.4% |
| $20,001 – $35,000 | 1.75% |
| $35,001 – $40,000 | 3.5% |
| $40,001 – $75,000 | 5.525% |
| $75,001 – $500,000 | 6.37% |
| $500,001 – $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
Standard Deduction
New Jersey offers the following standard deductions for the 2025 tax year:
- Single: $1,000
- Married Filing Jointly: $2,000
Retirement Income Exclusion
Residents aged 62 or older, or those who are disabled, with total income of $100,000 or less, may exclude up to the following amounts of retirement income:
- Single or Head of Household: $75,000
- Married Filing Jointly: $100,000
- Married Filing Separately: $50,000
For incomes between $100,001 and $150,000, a partial exclusion is available.
FICA Taxes
| Tax Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $176,100 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Income above $200,000 (Single) / $250,000 (Married) |
Pre-Tax Deductions
Common pre-tax deductions available to New Jersey residents include:
- Contributions to 401(k), 403(b), and other retirement plans
- Health and dental insurance premiums
- Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions
- Pre-tax transit and commuter benefits (up to $3,900 annually)
New Jersey-Specific Deductions and Credits
| Credit or Deduction | Description |
|---|---|
| Property Tax Deduction/Credit | Homeowners and renters may qualify for a deduction or refundable credit based on property taxes paid. |
| Earned Income Tax Credit (EITC) | Offers a credit equal to 35% of the federal EITC for eligible low- to moderate-income workers. |
| ANCHOR Program | Provides property tax relief to eligible homeowners and renters based on residency, income, and age. |
| College Affordability Deductions | Allows deductions for contributions to New Jersey’s 529 College Savings Plan and certain tuition expenses for taxpayers with income under $200,000. |
Interesting Facts About New Jersey Taxes
- New Jersey has one of the highest top marginal income tax rates in the nation at 10.75%.
- The state offers substantial property tax relief programs, including the ANCHOR and Senior Freeze programs.
- Residents can benefit from various tax credits aimed at education, property taxes, and low-income support.
Frequently Asked Questions (FAQs)
- Does New Jersey have a progressive income tax?
- Yes, New Jersey employs a progressive income tax system with rates ranging from 1.4% to 10.75%.
- Are there local income taxes in New Jersey?
- No, New Jersey does not impose local income taxes.
- What deductions are allowed on New Jersey state taxes?
- New Jersey allows standard deductions, property tax deductions or credits, and various other deductions for education and retirement savings.
- Is retirement income taxed in New Jersey?
- Retirement income may be partially or fully excluded based on age, disability status, and total income.