New Jersey state income tax
New Jersey has a state income tax. It is graduated, with a top marginal rate of 10.75%. Single/MFS (Table A), 7 brackets: 1.4% (≤$20,000), 1.75% ($20,000-$35,000), 3.5% ($35,000-$40,000), 5.525% ($40,000-$75,000), 6.37% ($75,000-$500,000), 8.97% ($500,000-$1,000,000), 10.75% (over $1,000,000). MFJ/HOH/qualifying widow(er) (Table B), 8 brackets: 1.4% (≤$20,000), 1.75% ($20,000-$50,000), 2.45% ($50,000-$70,000), 3.5% ($70,000-$80,000), 5.525% ($80,000-$150,000), 6.37% ($150,000-$500,000), 8.97% ($500,000-$1,000,000), 10.75% (over $1,000,000). Rates unchanged since the 2020 'millionaire's tax' law (P.L. 2020, c.94). Capital gains are taxed as ordinary income (no special lower rate).
Does New Jersey have a state income tax?
Yes. New Jersey taxes individual income on a graduated schedule topping out at 10.75%. Single/MFS (Table A), 7 brackets: 1.4% (≤$20,000), 1.75% ($20,000-$35,000), 3.5% ($35,000-$40,000), 5.525% ($40,000-$75,000), 6.37% ($75,000-$500,000), 8.97% ($500,000-$1,000,000), 10.75% (over $1,000,000). MFJ/HOH/qualifying widow(er) (Table B), 8 brackets: 1.4% (≤$20,000), 1.75% ($20,000-$50,000), 2.45% ($50,000-$70,000), 3.5% ($70,000-$80,000), 5.525% ($80,000-$150,000), 6.37% ($150,000-$500,000), 8.97% ($500,000-$1,000,000), 10.75% (over $1,000,000). Rates unchanged since the 2020 'millionaire's tax' law (P.L. 2020, c.94).
| Item | New Jersey |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 10.75% |
| Capital gains | Taxed as ordinary income, up to 10.75% |
| State sales tax | 6.625% |
| Avg. property tax rate | 2.2% of home value |
| Estate / inheritance tax | Inheritance tax |
How does New Jersey tax capital gains?
New Jersey has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 10.75%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in New Jersey?
Retirement income is taxed differently from wages in many states. For how New Jersey treats Social Security, pensions, and 401(k)/IRA withdrawals, see New Jersey retirement taxes.
Sources
- New Jersey income tax rates and brackets: New Jersey Department of Revenue / Taxation.
- New Jersey capital gains treatment: New Jersey tax authority.
- New Jersey sales tax: New Jersey Department of Revenue.