New Jersey State Income Tax: Rates, Brackets and Filing Requirements
New Jersey taxes income on a graduated scale, with rates ranging from 1.4% to 10.75% depending on income level and filing status. The state has one of the highest top marginal rates in the country, but most filers fall well below the upper brackets. If you earned income while living in or working in New Jersey, here is what you should know.
New Jersey State Income Tax Brackets and Rates
New Jersey uses seven to eight income tax brackets, depending on your taxable income and filing status. The brackets below apply to tax year 2020 and after.
Single filers and married filing separately:
| Taxable Income | Rate |
|---|---|
| $0–$20,000 | 1.4% |
| $20,001–$35,000 | 1.75% |
| $35,001–$40,000 | 3.5% |
| $40,001–$75,000 | 5.525% |
| $75,001–$500,000 | 6.37% |
| $500,001–$1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
Married filing jointly and qualifying surviving spouse:
| Taxable Income | Rate |
|---|---|
| $0–$20,000 | 1.4% |
| $20,001–$50,000 | 1.75% |
| $50,001–$70,000 | 2.45% |
| $70,001–$80,000 | 3.5% |
| $80,001–$150,000 | 5.525% |
| $150,001–$500,000 | 6.37% |
| $500,001–$1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
The 10.75% top rate applies only to taxable income exceeding $1 million and is among the highest state income tax rates in the country. Most New Jersey filers, including those earning up to $75,000, pay an effective rate below 6%.
Form NJ-1040 must be filed by residents who are filing state taxes. Non-residents or part-year residents with income from New Jersey must file Form NJ-1040NR, marking it “Amended” if correcting a previously filed return. More information can be found in an e-booklet issued by the New Jersey Department of the Treasury.
Who Needs to File a New Jersey State Tax Return?
New Jersey requires most residents, part-year residents, and nonresidents with in-state income to file a state return.
- Residents must file Form NJ-1040 if their gross income for the tax year was more than $20,000, or more than $10,000 if filing as a single filer or married filing separately.
- Part-year residents and nonresidents with income from New Jersey sources must file Form NJ-1040NR.
- Students: If you are a student who worked in New Jersey, even temporarily, and earned above the filing threshold, you are generally required to file a New Jersey state return. Students who are nonresidents working in NJ should file Form NJ-1040NR.
Even if you are not required to file, you must file a return to claim a refund of any New Jersey taxes withheld from your paychecks.
New Jersey Personal Exemptions and Credits
While the state doesn't permit federal deductions (mortgage interest or IRA contributions), you can take some of the following exemptions from your earned income for the year:
| Exemption | Amount |
|---|---|
| Self (each filer) | $1,000 |
| Spouse or domestic partner (joint return) | $1,000 |
| Senior (65 or older on December 31) | $1,000 additional |
| Honorably discharged veteran | $6,000 |
| Each qualified dependent | $1,500 |
New Jersey also offers a credit for taxes paid to other jurisdictions. To claim it, complete Schedule NJ-COJ and attach it to your return. Note that for New Jersey, Social Security benefits, Railroad Retirement benefits and military pensions are all exempt from state income tax.
New Jersey has a reciprocal income tax agreement with Pennsylvania: if you live in one state and work in the other, your wages are taxed only by the state where you live, not by the state where you work.
How to File New Jersey State Taxes
Online: New Jersey state returns can be filed electronically through E-file.com or through NJ Free File, the state's free electronic filing program available to eligible filers at nj.gov/taxation.
By mail: Paper returns are mailed to the address printed on your form.
The standard mailing address for Form NJ-1040 with a payment is:
State of New Jersey
Division of Taxation Revenue Processing Center
Payments PO Box 111
Trenton, NJ 08645-0111
Without a payment:
State of New Jersey
Division of Taxation Revenue Processing Center
Refunds PO Box 555
Trenton, NJ 08647-0555
When taxpayers make errors on their returns, amended returns must be filed. Residents must use Form NJ-1040X for filing amendments, and partial-year residents or nonresidents must use Form NJ-1040NR.
New Jersey Tax Deadlines and Extensions
New Jersey's filing and payment deadline is April 15 for most filers. If you filed a federal extension, New Jersey automatically extends your NJ filing deadline to October 15. You do not need to file Form NJ-630 separately. If you did not file a federal extension, file Form NJ-630 by April 15 to get the state extension. In either case, any taxes owed must still be paid by April 15.
If NJ taxpayers file their returns late, the state charges a late-filing penalty of 5% per month up to a maximum of 25% on any outstanding tax balance. The state also assesses an interest rate of 3% above the prime rate each month; taxes are not paid. The Division of Taxation may also assess a late payment penalty of 5% of the tax due.
Residents who need more time to file New Jersey taxes must use Form NJ-630 to request an extension. If money is owed, 80% of it must be paid by the April due date to qualify for an extension.
Estimated quarterly taxes may be required if NJ taxpayers do not have enough tax withheld from their paychecks. They may also be required for self-employed individuals. Use Form NJ-1040ES to determine the amount due.
New Jersey Tax Refunds
Taxpayers can track their refunds by calling 1-800-323-4400. State tax refunds can also be tracked online at nj.gov/treasury/taxation or via the Where is My Refund portal as long as you have your Social Security number and refund amount handy.
E-filed returns generally take four or more weeks to process; mailed returns take at least 12 weeks, or 15 or more if the return requires additional processing or was sent by certified mail.
For questions about prior returns or lost returns, you must file a Form DDC-1, Request for Transcript of Individual Income Tax Returns. If you need additional information, call 609-292-6400.
How to File New Jersey State Taxes With E-file.com
File your federal and New Jersey state returns together through E-file.com. The software handles New Jersey's bracket calculation, personal exemptions and credits automatically, so you're not doing the math yourself. Once accepted, your return is transmitted directly to the New Jersey Division of Taxation and you receive an IRS confirmation number as proof.
File your New Jersey state return with E-file.com.
Frequently Asked Questions About New Jersey State Taxes
What are New Jersey's state income tax rates?
New Jersey taxes income on a graduated scale with multiple brackets, ranging from 1.4% on the first $20,000 of taxable income to 10.75% on income over $1 million. Most New Jersey single filers earning up to $75,000 pay a marginal rate no higher than 5.525%. Married filing jointly filers at the same income level top out at 3.5%.
How long will it take to receive my refund?
E-filed returns typically produce a refund within four weeks. Paper returns can take up to 12 weeks. You can check your refund status online through the NJ Division of Taxation or by calling 1-800-323-4400.
When is the New Jersey state tax return due?
The New Jersey state tax return deadline is April 15 for most filers, the same as the federal deadline. If you file a federal extension, New Jersey automatically extends your NJ filing deadline to October 15, so no separate NJ form is required. If you only need a state extension, file Form NJ-630 by April 15.
Am I required to file a New Jersey state tax return as a student?
If you earned income in New Jersey and your gross income exceeded the filing threshold, which is $20,000 for most filers, or $10,000 if filing single or married filing separately, you are generally required to file a New Jersey state return, regardless of student status. Students who are nonresidents working in New Jersey should file Form NJ-1040NR.
Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.