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New Jersey Income Tax Rates 2025

New Jersey has a progressive income tax system with 7 brackets for single filers and 8 brackets for married filers, with rates ranging from 1.4% to 10.75%.

Tax Type

Progressive

Rate Range

1.4% – 10.75%

Brackets

7

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New Jersey is only part of the equation — federal taxes apply too.

State Tax Ranking

#16 of 51 Low tax burden at $75,000 income

At $75,000 income (single filer), New Jersey ranks #16 out of 51 states — where #1 is the lowest tax burden.

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Tax at Different Income Levels

Income State Tax Effective Rate Take-Home
$50,000 $1,270 2.54% $44,859
$75,000 $2,651 3.54% $64,400
$100,000 $4,244 4.24% $82,307
$150,000 $7,429 4.95% $117,504
$200,000 $10,614 5.31% $152,319

Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).

2025 Tax Brackets — Single Filer

Taxable Income Rate
$0 – $20,000 1.4%
$20,000 – $35,000 1.8%
$35,000 – $40,000 3.5%
$40,000 – $75,000 5.5%
$75,000 – $500,000 6.4%
$500,000 – $1,000,000 9.0%
Over $1,000,000 10.8%

2025 Tax Brackets — Married Filing Jointly

Taxable Income Rate
$0 – $20,000 1.4%
$20,000 – $50,000 1.8%
$50,000 – $70,000 2.5%
$70,000 – $80,000 3.5%
$80,000 – $150,000 5.5%
$150,000 – $500,000 6.4%
$500,000 – $1,000,000 9.0%
Over $1,000,000 10.8%

Tax Overview

New Jersey has progressive income tax brackets reaching 10.75% on income over $1 million. Combined with property taxes that are the highest in the US (average 2.23% of home value), New Jersey has one of the heaviest overall tax burdens nationally. However, NJ does not tax Social Security benefits.

Tax Planning Tip

New Jersey's combination of high income tax and nation-leading property taxes creates a substantial tax burden. If you work in NYC, note that NJ residents receive a credit for taxes paid to NY, but the NJ/NYC tax interaction can be complex — ensure proper credit on your NJ return.

New Jersey does not tax Social Security benefits. The state provides exclusions for retirement income up to certain thresholds based on filing status and total income.

Property Tax & Cost of Living

Property Tax Rate
2.23%
$10,704/yr on $480,000 home
Cost of Living Index
116
16% above national average
Median Home Value
$480,000
Housing index: 130 (avg = 100)

Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.

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Frequently asked questions

What is New Jersey's income tax rate in 2025?

New Jersey has a progressive income tax with 7 brackets ranging from 1.4% to 10.75%. Your effective rate depends on your total taxable income.

Does New Jersey tax Social Security benefits?

New Jersey does not tax Social Security benefits. The state also provides exclusions for retirement income up to certain thresholds based on filing status and total income.

What are New Jersey's income tax brackets for 2025?

New Jersey's 7 single-filer brackets for 2025: 1.4% on the first $20,000, 1.75% up to $35,000, 3.5% up to $40,000, 5.525% up to $75,000, 6.37% up to $500,000, 8.97% up to $1,000,000, and 10.75% on income over $1,000,000.

How does New Jersey's tax burden compare to other states?

New Jersey has one of the highest overall tax burdens in the US. In addition to high income tax rates (up to 10.75%), NJ has the highest property taxes in the nation and a 6.625% state sales tax. However, NJ does not tax Social Security benefits and has no estate tax on estates under $2 million.

Does New Jersey have local income taxes?

No, New Jersey does not have local or city income taxes. However, property taxes are set at the municipal level and vary significantly — some of the highest property tax rates in the country are in NJ municipalities.

What deductions and credits are available in New Jersey?

New Jersey offers a property tax deduction (or credit for renters), a state earned income tax credit (40% of the federal EITC), a child tax credit, and a pension/retirement income exclusion for qualifying taxpayers. The state also allows deductions for medical expenses and alimony payments.

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Last updated May 1, 2026 Tax year 2025-26

Data sources: IRS (irs.gov), Social Security Administration

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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