New Jersey State Income Tax in 2025: A Guide

New Jersey uses a graduated income tax system — meaning the more you earn, the higher your tax rate. For the 2025  tax year (the taxes you’ll file in 2026), rates range from 1.4% to 10.75%, depending on income and filing status.

Factors like your income level, filing status, residency, and available deductions or credits will determine how much you owe.

While New Jersey’s top rates are among the highest in the country, the state also offers several tax credits and deductions to help lower your bill. Let’s break down what you need to know when filing your New Jersey state income taxes this year.

Note: You are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only. 

New Jersey state income tax rates

New Jersey’s income tax system features eight tax brackets, with rates ranging from 1.4% to 10.75%. These rates apply progressively; the more you earn, the higher the percentage of your income you’ll pay in taxes. The state’s 10.75% rate applies to those with taxable income exceeding $1 million.

In the next section, we’ll break down tax tables and the specific tax brackets and rates for each filing status — including single filers, married couples, and heads of households — to help you better understand where you fit in.

NJ tax table vs. tax rate schedule: Which should you use?

Whether you use the New Jersey tax table or tax rate schedule to figure out how much you owe depends on your taxable income: 

Use either the tax table or tax rate schedules if your New Jersey taxable income is under $100,000.

Use the tax rate schedule if your taxable income is $100,000 or more.  

How to use the tax table to calculate your taxes

The tax table (found in the 2025 NJ-1040 Resident Return booklet) provides a quick way to find your exact tax amount without doing any calculations. Simply look up your taxable income in the table, and find out how much tax you owe. 

Example: If your taxable income is $45,325, find the row in the tax table that covers “$45,300–$45,350” to see your exact tax obligation.

How to use the tax rate schedule to calculate your taxes

The tax rate schedule requires you to do a bit of math using your taxable income and the applicable rates we just talked about. The tables below show the calculations you’ll need to make if filing manually.

Method	Tax Table	Tax Rate Schedule
Use if your income is:	Under $100,000	$100,000 or more
How to calculate your tax liability	Use the amount listed in the table for your taxable income (found in the NJ-1040 Resident Return booklet).	1. Use the tax rate schedule for your filing status. 2. Follow the instructions for each bracket that applies to your income.

The good news is if you file online with tax software like TurboTax, you won’t have to figure out which calculation to use. Our software provides a done-for-you experience.

What are the New Jersey tax rate schedules for 2025?

Here’s how the tax rate schedules break down by filing status:

Single or Married (or civil union) Filing Separately

The following table outlines the New Jersey state income tax rates for individuals filing as Single or Married (or civil union) Filing Separately for tax year 2025.

Taxable income	Tax rate
$0 to $20,000	1.4%
$20,001 to $35,000	1.75% (subtract $70 from the result of taxable income multiplied by 1.75%)
$35,001 to $40,000	3.5% (subtract $682.50 from the result)
$40,001 to $75,000	5.525% (subtract $1,492.50 from the result)
$75,001 to $500,000	6.37% (subtract $2,126.25 from the result)
$500,001 to $1 million	8.97% (subtract $15,126.25 from the result)
More than $1 million	10.75% (subtract $32,926.25 from the result)​

Married (or civil union) Filing Jointly, Head of Household, or Qualifying Widow(er)/surviving partner

The table below outlines the New Jersey state income tax rates for taxpayers filing as Married (or civil union) Filing Jointly, Head of Household, or Qualifying Widow(er)/surviving partner for tax year 2025.

Taxable income	Tax rate
$0 to $20,000	1.4%
$20,001 to $50,000	1.75% (subtract $70 from the result of taxable income multiplied by 1.75%)
$50,001 to $70,000	2.45% (subtract $420 from the result)
$70,001 to $80,000	3.5% (subtract $1,154.50 from the result)
$80,001 to $150,000	5.525% (subtract $2,775 from the result)
$150,001 to $500,000	6.37% (subtract $4,042.50 from the result)
$500,001 to $1 million	8.97% (subtract $17,042.50 from the result)
More than $1 million	10.75% (subtract $34,842.50 from the result)​

Who has to file New Jersey state income taxes?

If you live, work, or earn income in New Jersey (such as from a rental property), you may need to file a state income tax return. Filing requirements depend on your:

• Gross income
• Filing status
• Residency status

Residents, part-year residents, and nonresidents must file if their income exceeds certain thresholds. 

If your income meets or exceeds the following amounts, you’re required to file a New Jersey state income tax return. 

Filing status	Gross income threshold
Single or Married/civil union Filing Separate return	$10,000
Married/civil union Filing Joint return, Head of Household, or Qualifying Widow(er)/surviving partner	$20,000

A New Jersey tax return must also be filed if you:

• Have New Jersey Income tax withheld and want it refunded.
• Paid New Jersey estimated tax payments and want the payments refunded.
• Are eligible for the New Jersey Earned Income Tax Credit and are getting a refund.

How New Jersey residency impacts tax

Your residency status determines how your income is taxed and which tax forms you’ll need to file. New Jersey recognizes three residency statuses for state tax purposes:

• Resident
• Part-year resident
• Nonresident

The chart below breaks down:

• Residency type
• Who qualifies
• How income is taxed based on your residency status

Residency status	Definition	How New Jersey taxes income
Resident	Lived in New Jersey for the entire tax year or maintained a permanent home in New Jersey and spent more than 183 days in the state.	Taxed on all income earned, regardless of where it was earned.
Part-year resident	Moved in or out of New Jersey during the year.	Taxed on income earned while a resident and New Jersey sourced income earned while a nonresident.
Nonresident	Lived outside of New Jersey but earned income from New Jersey sources.	Taxed only on New Jersey-sourced income.

Does New Jersey have tax reciprocity with other states?

Yes. New Jersey has a reciprocal income tax agreement with Pennsylvania. This means that if you’re a New Jersey resident, you only have to pay New Jersey income taxes on wages earned in Pennsylvania. 

To take advantage of the reciprocity agreement, you’ll need to file FORM REV-419 to your Pennsylvania employer.

When you’re preparing your tax return, keep in mind that the reciprocity agreement doesn’t apply to self-employed income.

How do I file a tax extension for my New Jersey income taxes?

If you need an six-month extension for your New Jersey income taxes, you need to:

1. File online or mail Form NJ-630
2. Pay at least 80% of your taxes

You’ll need to complete both steps by the April 15 deadline to avoid a late filing penalty. You can file your tax return by the extended due date of  October 15.

Is retirement and pension income taxed in New Jersey?

Railroad Retirement benefits and military pensions are exempt from New Jersey state income tax. However, pensions, annuities, and certain IRA withdrawals are generally taxable for New Jersey residents.  

• New Jersey offers a pension exclusion for residents aged 62 or older, or those who are disabled, with a gross income of $150,000 or less. 
• Qualified distributions from a Roth IRA are excluded from taxable income in the state.

Is investment income taxed in New Jersey?

Capital gains are taxed at the same rates as personal income, with no preferential treatment for long-term capital gains.

Is Social Security income taxed in New Jersey?

New Jersey does not tax Social Security benefits, providing relief for retirees who rely on this income source.

Is military income taxed in New Jersey?

Military pay is taxable for New Jersey residents, but combat zone pay is exempt from state income taxes. Military pensions and survivor benefit payments are not taxed, regardless of age or disability status. Civil service pensions and annuities, even if based on military service, are taxable.

Common New Jersey state tax deductions and credits

New Jersey offers several tax deductions and credits designed to reduce your taxable income or provide direct financial relief. Below are a few state-specific deductions and credits you should know about.  

Tax credit/deduction	Description	Amount
Child and Dependent Care Credit	Credit for expenses related to child care or dependent care for qualifying dependents. Must have New Jersey taxable income of $150,000 or less.	Up to 50% of federal Child and Dependent Care Credit; maximum federal credit for 2025 is $2,100.
Child Tax Credit	Credit for taxpayers with qualifying children aged 5 or younger.	Up to $1,000 per child, depending on income. For taxpayers with taxable income of $80,000 or less.
New Jersey Earned Income Tax Credit (NJEITC)	Credit for low-to-moderate-income individuals and families based on earned income.	40% of the federal Earned Income Tax Credit (EITC); maximum federal credit for 2025 is $8,046.
Organ/Bone Marrow Donation Deduction/Credit	Deduction for unreimbursed expenses related to organ or bone marrow donations.	Up to $10,000.
Property Tax Deduction/Credit for Homeowners and Renters	Deduction or credit for property taxes paid on a primary residence (main home).	Homeowners can deduct property taxes paid (up to $15,000 or $7,500 if Married Filing Separately), while renters can deduct 18% of rent paid from their taxable income; alternatively, a refundable $50 credit (or $25 if Married Filing Separately) is available to reduce taxes owed.

Can you deduct federal income taxes on your tax return?

While some states, like Oregon and Alabama, allow you to write off federal income taxes paid on your state tax return, New Jersey does not.

How long does it take to get your New Jersey tax refund?

Typically, it takes at least 4 weeks to process e-filed returns and a minimum of 12 weeks for paper tax returns.

How to file New Jersey state income tax with TurboTax

Filing your New Jersey state income taxes doesn’t have to be overwhelming. TurboTax has your back.

• File with confidence: TurboTax ensures you get every deduction and credit you qualify for in New Jersey. 
• Do it your way: File your taxes yourself with easy-to-follow guidance or have a TurboTax expert handle it for you from start to finish. 
• Maximize your refund: TurboTax is built to uncover every savings opportunity, whether you’re a resident, part-year resident, or nonresident.
• Get help in person: Whether you’re in Jersey City or Marlton, come into one of our New Jersey TurboTax stores or expert offices for in-person tax help.

No matter your tax situation, we’ll simplify the process so you can file accurately and maximize your refund.

Ready to file your New Jersey state income taxes? Start with TurboTax today — your time and money deserve expert care.