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This site is not affiliated with the IRS or any state revenue department. Information is for general educational purposes only and is not tax, legal, or financial advice. State tax brackets and rules change annually. Always confirm current figures with your state's Department of Revenue or a licensed CPA or Enrolled Agent before filing. Sources: state revenue departments, IRS Publication 17, Federation of Tax Administrators, Tax Foundation. Last reviewed May 2026.
Income Tax by State›New Jersey
NJ
Graduated: up to 10.75%NJ-PA ReciprocityLast reviewed May 2026

New Jersey State Income Tax 2026

New Jersey's top rate of 10.75% only applies to income above $1,000,000. The effective rate at $75,000 is approximately 4.5%. New Jersey has a reciprocity agreement with Pennsylvania, simplifying filing for the large commuter population between the two states.

New Jersey 2026 Quick Facts

Tax typeGraduated (7 brackets)
Top marginal rate10.75% (above $1,000,000 single)
Effective rate at $75K~4.5%
Standard deductionNone (uses exemptions instead)
Personal exemption (single)$1,000
Reciprocity agreementsPennsylvania
Social Security taxedNo (below $150K AGI)
Local income taxNo personal local income tax
2026 changesNo change; millionaire's tax (10.75%) extended

2026 New Jersey Income Tax Brackets (Single Filer)

RateIncome Range
1.4%$0 - $20,000
1.75%$20,000 - $35,000
3.5%$35,000 - $40,000
5.525%$40,000 - $75,000
6.37%$75,000 - $500,000
8.97%$500,000 - $1,000,000
10.75%Above $1,000,000

New Jersey Effective Rate Calculator

Standard deduction: $1,000 applied before tax calculation.

Effective Rate

3.46%

State Tax Due

$2,596

Marginal Bracket

5.525%

State income tax only. Does not include federal income tax, Social Security, Medicare, or local income tax. Calculations are estimates for educational purposes. Verify with a licensed CPA before filing.

New Jersey Income Tax: FAQs

What are New Jersey's income tax brackets for 2026?
New Jersey has 7 income tax brackets: 1.4% on income up to $20,000; 1.75% on $20,000-$35,000; 3.5% on $35,000-$40,000; 5.525% on $40,000-$75,000; 6.37% on $75,000-$500,000; 8.97% on $500,000-$1,000,000; and 10.75% on income above $1,000,000.
What is the NJ-PA reciprocity agreement?
New Jersey and Pennsylvania have a reciprocity agreement: if you live in New Jersey but work in Pennsylvania, you pay income tax only to New Jersey (your home state). If you live in Pennsylvania and work in New Jersey, you pay only to Pennsylvania. This simplifies filing for the large commuter population between the two states.
Does New Jersey tax Social Security?
New Jersey does not tax Social Security benefits for taxpayers with gross income below $150,000. Above that threshold, Social Security may be partially or fully included in taxable income.
What is the New Jersey property tax credit?
New Jersey offers several property tax relief programs, including the ANCHOR (Affordable NJ Communities for Homeowners and Renters) program, which provides direct payments to homeowners and renters. These are separate from income tax but reduce the overall state tax burden, which is important context for New Jersey's high property taxes.
Does New Jersey have a local income tax?
New Jersey does not have a broad municipal income tax. However, Newark and a few other New Jersey municipalities have a payroll tax on employers (not employees directly). The employer-side Newark Payroll Tax is 1% on wages paid to Newark employees, which is sometimes factored into compensation packages.

Sources: New Jersey Division of Taxation (nj.gov/treasury/taxation), Tax Foundation. Data verified May 2026. Not tax advice. Always confirm current figures with the NJ Division of Taxation or a licensed CPA or Enrolled Agent before filing.

Updated 2026-05-11