New Jersey individual income tax
New Jersey imposes an individual income tax on both residents and nonresidents, calculated using their federal-adjusted gross income, with rates ranging from 1.4% to 10.75%.
April 18
Return due in 2023
10.75%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit NJDivisionOfTaxation
What is New Jersey income tax?
Individual income tax
Individual income tax is a type of direct tax levied by New Jersey on individuals that meet the taxable criteria.
Taxable incomes
New Jersey taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
New Jersey has 7 individual income tax brackets from 1.4% to 10.75%.
Standard deduction
New Jersey does not have a standard deduction.
Personal exemption
Personal exemption is $1,000 for singles and $2,000 for couples for the year 2022.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| New Jersey taxable income | Tax rate |
|---|---|
| $0 - $20,000 | 1.4% |
| $20,000 - $50,000 | 1.75% |
| $50,000 - $70,000 | 2.45% |
| $70,000 - $80,000 | 3.5% |
| $80,000 - $150,000 | 5.525% |
| $150,000 - $500,000 | 6.37% |
| $500,000 - $1,000,000 | 8.97% |
| $1,000,000+ | 10.75% |
Individual income tax
The State of New Jersey requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from New Jersey
Types of taxable incomes
The income types on which tax is levied are:
In New Jersey, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in New Jersey, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
You are required to file returns only if your gross income is more than $10,000 for single filers and $20,000 for joint filers.
Part-residents should file as residents(Form NJ-1040)for the time they were in the state and as non-residents(Form NJ-1040NR)for the duration they weren't in the state.
Part-residents need to file as non-residents only if they continue to have income from New Jersey sources.
Due
quarterly or annually
Pay taxes
Taxes in New Jersey are due by 18 April, 2023. Go to the official New Jersey Division of Taxation website.
In New Jersey, if you expect to pay tax of more than $400, you are required to pay quarterly estimated taxes.
Estimated taxes are to be made quarterly in instalments by the 15th of April, June, September, and January.
Type of tax
graduated tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in New Jersey does not have a standard deduction refers to an individual's permanent home or place of residence in the state.
New Jersey Resident
A New Jersey does not have a standard deduction resident is someone who is domiciled in New Jersey does not have a standard deduction, or who maintains a permanent place of residence in the state. This means that you are considered a New Jersey if you are in the state 183 days in a year.
Even if a permanent home was maintained, if the person wasn't in the state for 183 days, he/she will be considered a non-residents.
New Jersey part-year resident
A New Jersey Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of New Jersey is subject to state taxes.
You do not have to file returns if you had no income while you were a resident or if you had no income from New Jersey sources when you became a non-resident.
New Jersey non-resident
A New Jersey Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from New Jersey sources are required to pay New Jersey taxes.
Frequently asked questions
Business entities in New Jersey
There are several business entities in New Jersey
New Jersey LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time