The formulas
- Taxable income = income - standard deduction - personal exemptions (when applied), not below zero
- Tax from New Jersey Table A (single, separate) or Table B (joint, head of household, surviving spouse), 1.4% to 10.75%
- Regular exemption $1,000 per filer
- New Jersey income tax = tax from the rate schedule
How it works
Tax year: 2026.
New Jersey taxes income at 1.4% to 10.75%. Enter income before state deductions and choose whether to apply the state standard deduction and personal exemptions, or enter taxable income and switch them off. The tool computes state income tax only; credits other than those named are not applied.
New Jersey's rates are fixed by statute and not indexed; the tool uses the schedules in force since 2020, reprinted unchanged in the 2025 NJ-1040 instructions: Table A for single and separate filers and Table B for joint, head of household and surviving spouse returns, from 1.4 to 10.75 percent over $1,000,000. There is no standard deduction. Each filer claims a $1,000 regular exemption and each dependent $1,500 (dependents not applied here).
Local taxes: Newark charges employers a 1 percent payroll tax on wages for work in the city (0.5 percent for some employers with a mostly Newark workforce); employees do not pay it, and New Jersey has no resident city income tax on individuals.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the New Jersey income tax rate for 2026?
New Jersey taxes income at 1.4% to 10.75% for 2026. Tax from New Jersey Table A (single, separate) or Table B (joint, head of household, surviving spouse), 1.4% to 10.75%.
Does New Jersey have a standard deduction?
No. New Jersey has no standard deduction of its own.
Are there local income taxes in New Jersey?
Newark charges employers a 1 percent payroll tax on wages for work in the city (0.5 percent for some employers with a mostly Newark workforce); employees do not pay it, and New Jersey has no resident city income tax on individuals.
Sources
- New Jersey Division of Taxation, tax rate schedules (2020 and after)
- New Jersey Division of Taxation, 2025 NJ-1040 instructions (tax rate schedules)
- New Jersey Division of Taxation, regular exemptions
- New Jersey Division of Taxation, dependent exemptions
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.