New Jersey Retirement Income Tax 2025
See how New Jersey treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.
Social Security
Social Security and Railroad Retirement benefits are not taxable.
Pension and IRA income
Age 62+ filers may qualify for the pension exclusion when total income is $150,000 or less.
Estimated 2025 state tax
Resident return; local taxes and unmodeled credits excluded.
Modeled state taxable income
Retirement-income subtraction
Social Security and Railroad Retirement benefits are not taxable.
Age 62+ filers may qualify for the pension exclusion when total income is $150,000 or less.
Scope: The separate Other Retirement Income Exclusion and special exclusion are not modeled. Eligibility under age 62 through blindness or disability as defined by Social Security guidelines is modeled from the blindness and disability questions. The separate exemption for total and permanent disability is counted from its own question. On a joint return, enter your spouse’s age to exclude only the qualifying spouse’s pension and IRA income, based on the spouse shares you enter; without it, a qualifying primary filer’s exclusion covers everything entered, and a blind spouse qualifies only when you say which spouse is blind or both are.
New Jersey worked example
For a single filer age 68 with $80,000 of New Jersey total income, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:
Retirement subtraction
$65,000
Modeled state taxable income
$15,000
Estimated 2025 state tax
$182
This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.
What this model does not include
The separate Other Retirement Income Exclusion and special exclusion are not modeled. Eligibility under age 62 through blindness or disability as defined by Social Security guidelines is modeled from the blindness and disability questions. The separate exemption for total and permanent disability is counted from its own question. On a joint return, enter your spouse’s age to exclude only the qualifying spouse’s pension and IRA income, based on the spouse shares you enter; without it, a qualifying primary filer’s exclusion covers everything entered, and a blind spouse qualifies only when you say which spouse is blind or both are. Review the official instructions before filing.
Review the full New Jersey income tax guide →New Jersey retirement income tax FAQs
Does New Jersey tax Social Security benefits in 2025?
Social Security and Railroad Retirement benefits are not taxable.
Does New Jersey tax pensions and IRA withdrawals?
Age 62+ filers may qualify for the pension exclusion when total income is $150,000 or less.
What does the New Jersey retirement tax example include?
The example uses a single filer age 68 with $80,000 of New Jersey total income, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.
Is this a complete New Jersey resident return?
No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. The separate Other Retirement Income Exclusion and special exclusion are not modeled. Eligibility under age 62 through blindness or disability as defined by Social Security guidelines is modeled from the blindness and disability questions. The separate exemption for total and permanent disability is counted from its own question. On a joint return, enter your spouse’s age to exclude only the qualifying spouse’s pension and IRA income, based on the spouse shares you enter; without it, a qualifying primary filer’s exclusion covers everything entered, and a blind spouse qualifies only when you say which spouse is blind or both are.
Sources
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