New Jersey Income Tax Calculator
Estimate your New Jersey income tax burden
Updated for 2023 tax year on Jul 18, 2023
Income tax calculators by state
New Jersey state taxes
Quick New Jersey tax facts
- State income tax: 1.4% to 10.75%
- State payroll tax: two different payroll taxes
- State sales tax: 6.625%
- Property tax: 2.47%
- Gas tax: 41.4 cents per gallon
- Tobacco tax: $2.70 per pack of 20 cigarettes
- Insurance premium tax: 2.1% for life insurance; 5% for other types
From Wikipedia
New Jersey income taxes
New Jersey’s state income tax is progressive, with rates ranging from 1.4% to 10.75%. The highest rate applies to those earning $5 million and above, so the burden varies widely depending on income level.
There are three type of state payroll tax in New Jersey: State Unemployment Insurance (SUI), State Disability Insurance (SDI) and Paid Family and Medical Leave (PFML).
New Jersey offers no state standard deduction but residents can claim personal and dependent exemptions.
Calculate your income tax in New Jersey
Calculating your New Jersey state income tax is similar to the steps we listed on our Federal income tax calculator:
- Determine your filing status
- Work out your adjusted gross income [Gross income − Retirement contributions = Adjusted gross income]
- Calculate your state taxable income [Adjusted gross income − (Itemized deductions + Exemptions) = State taxable income]
- Figure out your state/local tax liability [State taxable income × State tax rate = State tax liability]
- Deduce your state payroll tax liability [Gross income × State payroll tax rate = State payroll tax liability]
- Add up all state and local taxes [State tax liability + State payroll tax liability = Total state income taxes]
State payroll tax
| Tax year | Tax name | Percent of taxable wage | Up to taxable wage | Comment |
|---|---|---|---|---|
| 2023 | State Unemployment Insurance (SUI) | 0.425% | $41,100 | |
| Paid Family and Medical Leave (PFML) | 0.06% | $156,800 | ||
| 2022 | State Unemployment Insurance (SUI) | 0.425% | $39,800 | |
| Paid Family and Medical Leave (PFML) | 0.28% for calendar year 2021 0.14% for calendar year 2022 |
$151,900 | ||
| 2021 | State Unemployment Insurance (SUI) | 0.425% | $36,200 | |
| Paid Family and Medical Leave (PFML) | 0.16% for calendar year 2020 0.28% for calendar year 2021 |
$138,200 | ||
| 2020 | State Unemployment Insurance (SUI) | 0.425% | 2019 taxable wage base up to $34,400 2020 taxable wage base up to $35,300 |
|
| Paid Family and Medical Leave (PFML) | 0.08% for calendar year 2019 0.16% for calendar year 2020 |
Maximum contribution is $215.84 |
State income tax brackets
Each filer type has different progressive tax rates. Refer to Tax Foundation for more details.
| Tax year | Filing status | Taxable income | Rate |
|---|---|---|---|
| 2023 2022 2021 2020 |
Single Married, Filing Separately |
$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% | ||
| Married, Filing Jointly or Widow(er) Head of Household |
$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 – $5,000,000 | 8.97% | ||
| $5,000,000+ | 10.75% |
State exemptions
There is state-level exemptions for all type of filers and dependents. Refer to Tax Foundation for more details.
| Tax year | Filing status | Personal exemption amount |
|---|---|---|
| 2023 2022 2021 2020 |
Single Married, Filing Separately Head of Household |
$1,000 |
| Married, Filing Jointly or Widow(er) | $2,000 | |
| Dependent(s) | $1,500 |
New Jersey sales tax
New Jersey levies a statewide sales tax of 6.625%, but there are exceptions. For instance, certain goods like unprepared foods, prescription drugs, and clothes are exempt from sales tax.
New Jersey property tax
Property taxes in New Jersey are the highest in the nation, with an average effective rate of 2.47%.
New Jersey capital gains tax
In New Jersey, capital gains are taxed as regular income, so they’re subject to the same progressive state income tax rates.
New Jersey gas tax
New Jersey charges a substantial gas tax of 41.4 cents per gallon.
New Jersey tobacco tax
The state’s tobacco tax is $2.70 per pack of 20 cigarettes, among the highest in the country.
New Jersey insurance tax
The rate is 2.1% for life insurance and 5% for other types of insurance.
FAQs
How do I calculate my New Jersey income tax?
Calculate your New Jersey state income tax with the following six steps.
- Determine your filing status
- Gross income − Retirement contributions = Adjusted gross income
- Adjusted gross income − (Itemized deductions + Exemptions) = State taxable income
- State taxable income × State tax rate = State tax liability
- Gross income × State payroll tax rate = State payroll tax liability
- State tax liability + State payroll tax liability = Total state income tax
How much is $80000 a year after taxes in New Jersey?
A single New Jerseyite will have an income tax bill of $19,236.55. This makes the take home pay $60,763.45.