New Jersey Paycheck Calculator

New Jersey imposes a state income tax of 1.4%-10.75%. Progressive, no standard deduction. Your actual New Jersey tax liability depends on your filing status, deductions, and taxable income.

In addition to New Jersey state tax, all workers pay federal income tax (10%—7% progressive brackets) and FICA taxes (7.65% combined). Use our calculator above to see your complete tax breakdown.

New Jersey has one of the most aggressive progressive state income tax systems in the United States, with brackets ranging from 1.4% to 10.75%. The New Jersey Division of Taxation administers state taxes. The top rate of 10.75% applies to income over $1 million for single filers.

Key Tax Features: New Jersey has no standard deduction and no personal exemption, meaning taxable income equals gross income minus very limited deductions. The state taxes Social Security benefits for higher-income retirees. New Jersey does not conform to all federal tax provisions.

Property Tax Context: New Jersey is famous for having some of the highest property tax rates in the nation, averaging around 2.5% of assessed value annually. However, the state offers a homestead property tax deduction for homeowners. This high property tax partially offsets the income tax burden for retirees who have paid off their homes.

No Local Income Tax: New Jersey does not impose local income taxes on wages, unlike some neighboring states. Local governments rely on property taxes and some local aid from the state.

New Jersey has one of the most aggressive progressive tax systems, with seven brackets and no standard deduction. The state has the highest population density in the U.S. and a strong pharmaceutical and financial services sector.