New Jersey State Income Tax Overview
New Jersey (NJ) state income tax rate: 10.75% (graduated rate system)
New Jersey Income Tax Brackets (2026)
1.4% on first $20,000; 1.75% on $20,001–$35,000; 3.5% on $35,001–$40,000; 5.525% on $40,001–$75,000; 6.37% on $75,001–$500,000; 8.97% on $500,001–$1,000,000; 10.75% above $1,000,000
New Jersey has a highly graduated income tax with a 10.75% top rate, the third-highest in the nation. NJ also has a 2% tax on all income for filers earning over $1 million (the "millionaire's tax"), in addition to the high marginal rates. Combined with high property taxes, NJ has one of the highest total tax burdens.
Median Household Income in New Jersey
The median household income in New Jersey is $89,703. New Jersey has the second-highest median household income in the US, driven by its position in the New York metro area and its highly educated workforce. Despite high incomes, NJ's property taxes (averaging over $9,000/year) and income tax rates are among the highest nationally.
How to Use This Calculator for New Jersey
- Enter your gross income and filing status
- The calculator applies New Jersey's graduated income tax rate of up to 10.75%
- Subtract your standard deduction and any applicable credits
- Review your estimated state and federal tax liability
Frequently Asked Questions
What is the New Jersey state income tax rate?
New Jersey has a graduated income tax with a top rate of 10.75%. 1.4% on first $20,000; 1.75% on $20,001–$35,000; 3.5% on $35,001–$40,000; 5.525% on $40,001–$75,000; 6.37% on $75,001–$500,000; 8.97% on $500,001–$1,000,000; 10.75% above $1,000,000.
How does New Jersey's income tax compare to the national average?
New Jersey's top income tax rate of 10.75% applies to a graduated rate system. New Jersey has a highly graduated income tax with a 10.75% top rate, the third-highest in the nation. NJ also has a 2% tax on all income for filers earning over $1 million (the "millionaire's tax"), in addition to the high marginal rates. Combined with high property taxes, NJ has one of the highest total tax burdens.
What is the median household income in New Jersey?
The median household income in New Jersey is $89,703. New Jersey has the second-highest median household income in the US, driven by its position in the New York metro area and its highly educated workforce. Despite high incomes, NJ's property taxes (averaging over $9,000/year) and income tax rates are among the highest nationally.
Is this state income tax calculator free to use for New Jersey?
Yes, this state income tax calculator is 100% free with no signup required. It includes New Jersey-specific tax rates and calculates your estimated state and federal tax liability instantly.