New Jersey Paycheck Calculator 2026

New Jersey income tax brackets for 2026

New Jersey's brackets for single filers approximate: 1.4% to $20,000, 1.75% to $35,000, 3.5% to $40,000, 5.525% to $75,000, 6.37% to $500,000, 8.97% to $1,000,000, and 10.75% above $1,000,000. Married-filing-jointly brackets are roughly doubled at the lower end but the millionaire's tax applies at the same $1M threshold for both single and joint filers — producing a meaningful marriage penalty at the top end.

New Jersey does not allow a federal-style standard deduction. Instead, it offers a personal exemption ($1,000 per filer / spouse / dependent), a $1,500 dependent exemption for college-aged children, and specific subtractions for medical expenses (above 2% of NJ gross income), property taxes, and qualified retirement income for filers age 62+ meeting the income limit.

New Jersey property tax: nation's highest

The statewide effective property tax rate of 2.46% means a $500,000 home in Bergen, Essex, or Union County commonly carries a $12,000–$15,000 annual tax bill. Property tax is administered at the municipal level (566 municipalities), and rates vary from under 1.5% in some Cape May beach towns to over 3.5% in parts of Essex County.

ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) provides annual rebates of up to $1,500 for eligible homeowners and $450 for renters under income limits. Senior Freeze (Property Tax Reimbursement) refunds the difference between current property tax and the base year for filers age 65+ meeting the income limit. Both must be applied for annually.

New Jersey credits and deductions

• NJ Earned Income Credit — 40% of the federal EITC, refundable.
• Child and Dependent Care Credit — up to 50% of the federal credit.
• Child Tax Credit — up to $1,000 per child under age 6 for filers below the income limit.
• Property Tax Deduction or Credit — deduct up to $15,000 of property tax against NJ taxable income, or take a $50 credit.
• Pension and Other Retirement Income Exclusion — up to $100,000 for filers age 62+ with total income under $150,000.
• Veteran Exemption — $6,000 additional exemption for honorably discharged veterans.

New Jersey paycheck specifics

New Jersey employees see four state-level paycheck deductions in addition to federal tax and FICA: state income tax withholding, Temporary Disability Insurance (TDI, ~0.23% on wages up to ~$165,400), Family Leave Insurance (FLI, ~0.09% on the same wage base), and SUI/WF (state unemployment, employee portion ~0.425%). Combined these add roughly 0.75% on top of state income tax withholding — small but visible on a paycheck stub.

New Jersey supplemental withholding on bonuses and stock compensation is 21.3% above $1M and a flat 11.8% below — substantially higher than most states. RSU and bonus recipients in Hoboken, Jersey City, and the Princeton tech corridor should expect a notably bigger state withholding bite on supplemental wages than the underlying marginal rate would suggest.

Capital gains and the New Jersey exit tax

New Jersey taxes capital gains at the full marginal rate — no preferential treatment. The combined federal + New Jersey rate on a long-term capital gain for top earners is approximately 34.55%, before the NJ exit tax.

The so-called 'NJ exit tax' is not an additional tax — it is a 2% withholding (or the actual gain tax, whichever is greater) collected at closing when a non-resident sells New Jersey real estate, with the actual liability reconciled on the year-end NJ-1040NR. Residents moving out of New Jersey before selling their primary residence are exempt if they continue to qualify as residents through the closing date.

Common New Jersey planning moves

• Use the Pass-Through Business Alternative Income Tax (BAIT) — New Jersey's PTET — to restore SALT deductibility for owners of partnerships and S-corps. Election deadline is March 15.
• Time the Pension/Retirement Income Exclusion. The $100,000 exclusion phases out hard at $150,000 of total income; deferring or accelerating other income can preserve the full exclusion.
• Protest your assessment annually. Most NJ municipalities reassess on rolling cycles and informal appeals through the County Board of Taxation routinely succeed.
• Take the property tax deduction over the credit — at any meaningful marginal rate the deduction is worth more than the $50 credit.
• Apply for Senior Freeze the year you turn 65, even if your income is high. The base year is locked the year you first qualify, so applying early protects against future rate increases.