New Jersey Tax Calculator & Rates 2026
New Jersey's income tax stands out for three reasons: a 10.75% top rate on income above $1 million (one of the highest state rates in the country), no standard deduction (only a $1,000 personal exemption), and two separate rate tables - Table A with 7 brackets for Single/MFS filers and Table B with 8 brackets for MFJ/HoH filers. NJ employees also face mandatory payroll deductions for SUI, TDI, and FLI that meaningfully reduce take-home pay. New Jersey computes its Gross Income Tax independently of federal AGI, meaning federal OBBBA deductions do not automatically flow through to the NJ return.
New Jersey Income Tax Brackets 2026 - Table A (Single / MFS)
New Jersey uses two rate schedules. Table A applies to Single and Married/CU Filing Separately filers and has 7 brackets. Table B applies to MFJ, Head of Household, and Qualifying Surviving Spouse and has 8 brackets with wider thresholds and an additional 2.45% bracket. NJ brackets are statutory (N.J.S.A. 54A:2-1) and are not inflation-indexed - thresholds change only through legislation.
| NJ Taxable Income (Single / MFS - Table A) | Rate |
|---|---|
| $0 – $20,000 | 1.40% |
| $20,000 – $35,000 | 1.75% |
| $35,000 – $40,000 | 3.50% |
| $40,000 – $75,000 | 5.525% |
| $75,000 – $500,000 | 6.37% |
| $500,000 – $1,000,000 | 8.97% |
| $1,000,000+ | 10.75% |
Table B (MFJ / HoH / Qualifying Surviving Spouse) - 8 Brackets
| NJ Taxable Income (MFJ / HoH - Table B) | Rate |
|---|---|
| $0 – $20,000 | 1.40% |
| $20,000 – $50,000 | 1.75% |
| $50,000 – $70,000 | 2.45% |
| $70,000 – $80,000 | 3.50% |
| $80,000 – $150,000 | 5.525% |
| $150,000 – $500,000 | 6.37% |
| $500,000 – $1,000,000 | 8.97% |
| $1,000,000+ | 10.75% |
The key difference between the tables: Table B (MFJ/HoH) includes a 2.45% bracket at $50,000–$70,000 that does not exist in Table A, and the 1.75% bracket extends to $50,000 instead of $35,000. Both tables converge at the same rates above $500,000.
New Jersey Personal Exemptions 2026
New Jersey does not offer a standard deduction. Instead, NJ provides personal exemptions that reduce taxable income:
| Filing Status | Personal Exemption |
|---|---|
| Single | $1,000 |
| Married Filing Jointly | $2,000 |
| Married Filing Separately | $1,000 |
| Head of Household | $1,000 |
Additional exemptions are available: $1,000 for age 65+, $1,000 for blind or disabled, $6,000 for qualified veterans, and $1,500 per dependent. The lack of a standard deduction means NJ residents have significantly less pre-tax income shielded compared to states like New York ($8,000 single) or federal ($15,700 single).
New Jersey Payroll Deductions 2026
New Jersey requires three employee-side payroll deductions that are a major differentiator from most states. These reduce take-home pay on top of federal and state income tax withholding:
| Program | Employee Rate | Wage Base |
|---|---|---|
| SUI (State Unemployment Insurance) | 0.38% | $44,800 |
| TDI (Temporary Disability Insurance) | 0.19% | $171,100 |
| FLI (Family Leave Insurance) | 0.23% | $171,100 |
Combined, these three deductions total approximately 0.81% of covered wages. For a worker earning $100,000, this adds roughly $813 in annual state payroll deductions beyond federal FICA. TDI and FLI wage bases are the same ($171,100) and significantly higher than the SUI wage base ($44,800). Rates are set annually by the NJ Department of Labor.
New Jersey OBBBA Conformity
New Jersey's Gross Income Tax (GIT) has a structural non-conformity with the federal tax code. NJ computes taxable income using its own gross income definition under N.J.S.A. 54A:5-1 - it does not start from federal AGI. This means that OBBBA deductions for tips, overtime, and the senior bonus that reduce federal AGI have no automatic effect on New Jersey tax liability. This is the same "PA-pattern" structural independence seen in Pennsylvania. New Jersey would need to pass separate legislation to adopt any OBBBA deductions.
New Jersey Retirement & Pension Tax
New Jersey does not tax Social Security benefits. For pension and retirement income, NJ provides a pension exclusion for taxpayers age 62+ (or disabled):
- MFJ/CU Joint: Up to $100,000 exclusion if total income is $100,000 or less
- Single/HoH: Up to $75,000 exclusion if total income is $100,000 or less
- MFS/CU Separate: Up to $50,000 exclusion if total income is $100,000 or less
The exclusion phases out sharply: 50% of the exclusion amount at $100,001–$125,000 (MFJ), 25% at $125,001–$150,000, and no exclusion above $150,000. This income cliff makes the $100,000 threshold a critical tax planning point for NJ retirees.