Income Tax in New Jersey
New Jersey (NJ) has 7 income tax brackets ranging from 1.4% to 10.8% for tax year 2025. The standard deduction is $0 for single filers and $0 for married filing jointly.
New Jersey runs a high-rate income tax. The top marginal bracket sits in the upper band of the U.S. state-tax distribution. Effective rates at the high end can approach or exceed 10 percent of income before deductions.
For households comparing New Jersey against other states, the full picture combines income tax (modeled by the calculator) with state and local sales tax, property tax, and any state-specific tax preferences. The compare tool on this site runs a side-by-side total-burden estimate; the per-state pages cover the income-tax piece in detail.
TaxCompare answers state and federal tax questions using the IRS Revenue Procedures and the Tax Foundation state-tax database — the authoritative current-year statutory sources. Every numeric answer on the site uses current-year brackets, deductions, and rates as published by those sources.
Two things to know. First, statutory rates and effective rates are different. A 6 percent state with deductions and credits can produce a lower effective tax than a 4 percent state with no deductions. The compare tool runs effective-rate calculations. Second, multi-state filers (work in one state, live in another) have residency rules the tool does not currently model; the output reflects single-state residence.
How New Jersey Income Tax Works
New Jersey uses a progressive bracket structure for tax year 2025, with 7 marginal brackets ranging from 1.4% on the first dollar of taxable income to 10.8% at the top of the schedule. Each bracket rate applies only to the portion of income that falls within that bracket — your effective rate (total tax divided by taxable income) is generally lower than your top marginal rate.
New Jersey does not provide a state-level standard deduction in the way most states do. Some states instead use personal exemptions, exemption credits, or conformity to the federal taxable-income figure. Check the state revenue department's instructions for New Jersey for the specific mechanism that applies to your filing status.
Compared to flat-rate states, New Jersey's graduated structure shifts more of the burden to higher earners. Compared to states with no income tax, New Jersey residents face an explicit state income tax line — but typically lower sales and property tax rates as a partial offset. The Tax Foundation publishes annual state-and-local total tax burden comparisons that combine all three.
2025 Tax Brackets in New Jersey
| Tax Rate | Taxable Income Range |
|---|---|
| 1.4% | $0 — $20,000 |
| 1.8% | $20,000 — $35,000 |
| 3.5% | $35,000 — $40,000 |
| 5.5% | $40,000 — $75,000 |
| 6.4% | $75,000 — $500,000 |
| 9.0% | $500,000 — $1,000,000 |
| 10.8% | $1,000,000+ |
Each bracket rate applies only to taxable income that falls within the bracket range. To see the dollar tax on a specific income, try the income tax calculator.
Standard Deduction
| Filing Status | Deduction |
|---|---|
| Single | N/A |
| Married Filing Jointly | N/A |
What This Page Cannot Tell You
The brackets and deductions above describe the statutory state-level rules. Your actual state tax liability depends on credits (earned-income credit, child credit, dependent credit), itemized deductions, retirement-income exclusions, local-government taxes (city or county income tax in some states), and federal taxable-income conformity rules. None of those interactions are computed here.
This page is informational and is not tax advice. For filing decisions, consult a qualified tax professional and the official IRS publications and $New Jersey Department of Revenue instructions for tax year 2025. The Tax Foundation publishes annual state-tax-burden comparisons at taxfoundation.org if you want a national context for the New Jersey numbers above.
Frequently Asked Questions
What is the income tax rate in New Jersey for 2025?
New Jersey (NJ) has 7 income tax brackets ranging from 1.4% to 10.8% for tax year 2025. The standard deduction is $0 for single filers and $0 for married filing jointly.
Does New Jersey use flat or progressive brackets?
New Jersey uses a progressive bracket structure for 2025, with 7 marginal brackets running from 1.4% on the first dollar of taxable income up to 10.8% at the top of the schedule. Each rate applies only to the portion of income that falls within that bracket.
What is the New Jersey standard deduction for 2025?
New Jersey does not publish a conventional state standard deduction. Many states without an explicit standard deduction instead conform to federal taxable income or use a personal exemption credit. Refer to the New Jersey Department of Revenue instructions for 2025 for the precise mechanism that applies to your filing status.
Does New Jersey tax Social Security or retirement income?
Social Security and retirement income treatment varies meaningfully across states and changes year to year as state legislatures act. The IRS taxes Social Security at the federal level using a separate worksheet (see Publication 915). For New Jersey's specific treatment, consult the official New Jersey Department of Revenue website. This page is informational; consult a qualified tax professional for advice on your situation.
Where does this data come from?
The brackets and deductions on this page are compiled from official state tax authority publications and from the Tax Foundation's annual state tax data, cross-checked against IRS state tax data where applicable. The 2025 figures reflect statutes in effect as of the most recent update (April 2026). State legislatures sometimes change rates or thresholds mid-year; for filing decisions, always verify against the official New Jersey Department of Revenue publication and consult a qualified tax professional. This site does not provide tax advice.