New Jersey Take-Home Pay Calculator (2026)

New Jersey has a graduated income tax with a top rate of 10.75%, which applies to income above $1 million. For most workers, the relevant top rate is 6.37% on income between $75,000 and $500,000 or 8.97% above $500,000. The 10.75% millionaire's tax was added in 2020 and remains in effect. A single worker earning $90,000 faces an effective New Jersey state rate of roughly 5% to 6%.

New Jersey's income tax stands in sharp contrast to its neighbor, New York. Both states have high rates and high costs of living, but New Jersey does not impose a separate local income tax on top of the state rate. Workers who commute from New Jersey into New York City pay New York City's income tax as non-residents working in the city, which eliminates much of the advantage, but New Jersey residents who work within the state avoid the NYC tax entirely.

The standard deduction in New Jersey is called an exemption rather than a deduction, and the amounts are relatively small. Single filers receive a $1,000 exemption. This minimal reduction to taxable income means New Jersey taxable income closely tracks gross wages. A $75,000 worker has $74,000 of New Jersey taxable income, and the tax at blended rates comes to approximately $3,500 to $4,000.

New Jersey property taxes are the highest in the nation by most measures, averaging over $9,000 per year for residential properties. When evaluating total state and local tax burden, New Jersey workers who own homes pay significantly more through property taxes than the income tax alone suggests. Renters in New Jersey can claim a property tax deduction equivalent to 18% of rent paid, which provides some relief on the state return.