New Jersey has a top marginal income tax rate of 10.75% for 2026. See the full brackets, standard deduction, and how it stacks up against the national average.
Last updated: May 2026 · Data: state revenue departments, IRS, BLS
New Jersey uses a graduated (progressive) income tax system administered by the New Jersey Division of Taxation. The top marginal rate for 2026 is 10.75% on the highest bracket.
| Taxable Income | Tax Rate (2026) |
|---|---|
| $0 to $20,000 | 1.4% |
| $20,000 to $35,000 | 1.75% |
| $35,000 to $40,000 | 3.5% |
| $40,000 to $75,000 | 5.525% |
| $75,000 to $500,000 | 6.37% |
| $500,000 to $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
New Jersey income tax starts from your taxable income after deductions. For 2026 (2025 tax year), the federal standard deduction is $15,000 for single filers and $30,000 for married filing jointly, which reduces the income subject to federal tax.
| Standard Deduction (2026) | Amount |
|---|---|
| Federal - Single | $15,000 |
| Federal - Married Filing Jointly | $30,000 |
| Federal - Head of Household | $22,500 |
State standard deductions, personal exemptions, and credits vary and may differ from the federal amounts above. Confirm New Jersey figures with the New Jersey Division of Taxation.
| Benchmark | Top Marginal Rate |
|---|---|
| New Jersey (2026) | 10.75% |
| National average - all 50 states | 4.86% |
| National average - 41 states with an income tax | 5.93% |
| Highest in the U.S. (California) | 13.3% |
| Lowest among states that tax income | 2.5% |
| States with no income tax | 0% (9 states) |
At 10.75%, New Jersey's top rate is above the national average of 4.86% (all 50 states).
New Jersey has seven income tax brackets with a top rate of 10.75% on income over $1 million. The state has no sales tax on groceries, clothing, or medications.
| New Jersey Tax Snapshot | 2026 |
|---|---|
| Top Income Tax Rate (2026) | 10.75% |
| Income Tax Structure | 7-bracket graduated |
| State Sales Tax | 6.625% |
| Minimum Wage | $15.49/hour |
| Median Household Income | $97,000 |
| Tax Agency | New Jersey Division of Taxation |
Run the numbers for New Jersey with our free calculators:
See how nearby states tax income in 2026:
New Jersey has a top marginal state income tax rate of 10.75% for 2026, applied to the highest income bracket. Lower brackets are taxed at lower rates. It is administered by the New Jersey Division of Taxation.
New Jersey uses a graduated, progressive income tax system, so different portions of your income are taxed at different rates as shown in the bracket table above.
New Jersey has 7 income tax brackets for 2026, ranging up to a top rate of 10.75%.
The 2026 federal standard deduction is $15,000 for single filers and $30,000 for married filing jointly. New Jersey state deductions, exemptions, and credits can differ; verify current figures with the New Jersey Division of Taxation.
At 10.75%, New Jersey's top rate is above the national average of 4.86% (all 50 states). The national average top marginal rate is 4.86% across all 50 states and 5.93% among the 41 states that levy an income tax.
State income tax in New Jersey is collected by the New Jersey Division of Taxation. Federal income tax and FICA (Social Security and Medicare) are paid separately to the IRS.