New Jersey state taxes include a graduated income tax that runs from 1.4% to 10.75%, a 6.625% statewide sales tax, locally assessed property taxes that averaged over $10,000 per household in 2024, an inheritance tax on certain beneficiaries, and a corporate business tax tiered by net income. Most individual returns are due April 15. The sections below walk through each tax, the main relief programs, and the deadlines that matter.
Income Tax Rates and Filing Thresholds
New Jersey’s income tax is governed by the Gross Income Tax Act at N.J.S.A. 54A:1-1 et seq.1Justia. New Jersey Revised Statutes Title 54A – New Jersey Gross Income Tax Act You have to file if your gross income tops $10,000 as a single filer or $20,000 filing jointly. Part-year residents and non-residents with New Jersey-source income also file, based on their proportional share. Taxable income covers wages, interest, dividends, business profits, and gains from selling property.
The brackets are graduated, so only the income falling inside each band is taxed at that band’s rate. For single filers the first $20,000 is taxed at 1.4%, and the rate climbs through 1.75%, 3.5%, 5.525%, and 6.37% as income rises. Income from $500,001 to $1,000,000 is taxed at 8.97%, and everything over $1,000,000 at 10.75%.2New Jersey Department of the Treasury. New Jersey Tax Rate Schedules Joint filers get slightly wider bands at the low end, but the top rates match.
Quarterly Estimated Payments
If you expect to owe $400 or more after withholding and credits, you owe quarterly estimated payments instead of waiting for April. For 2026 the due dates are April 15, June 15, September 15, and January 15, 2027. Underpaying triggers a penalty, so freelancers, self-employed filers, and anyone with substantial investment income should plan the four payments in advance.
Retirement Income and Social Security
New Jersey does not tax Social Security benefits or Railroad Retirement payments.3New Jersey Department of the Treasury. New Jersey Income Tax Guide: Retiring in New Jersey The state also offers a pension and retirement income exclusion for residents age 62 or older, or those who are disabled. The amount you can exclude depends on filing status and total New Jersey gross income.
With gross income at $100,000 or less, you can exclude up to $100,000 of qualifying retirement income on a joint return, $75,000 filing single or head of household, or $50,000 filing separately. Qualifying income covers taxable pensions, IRA withdrawals, 401(k) and 403(b) distributions, and annuities. Between $100,001 and $150,000 in gross income, reduced partial exclusions apply. Above $150,000 the exclusion is gone.4Division of Taxation. Retirement Income Exclusions
Sales and Use Tax
The statewide sales tax is 6.625% on most tangible goods, certain digital products, and specifically listed services.5NJ Division of Taxation. Sales and Use Tax Retailers collect and remit it. If you buy a taxable item from an out-of-state seller who didn’t charge New Jersey tax, you owe use tax at the same 6.625% rate on your income tax return.
Everyday exemptions are broad. Grocery food, most clothing and footwear, household paper products, prescription drugs, and over-the-counter medications are not taxed.6New Jersey Division of Taxation. New Jersey Sales Tax Guide Businesses in designated Urban Enterprise Zones can charge 3.3125%, half the standard rate, on most qualifying sales of physical goods, a program meant to steer spending into economically distressed areas.7NJ Division of Taxation. Urban Enterprise Zone
Remote Sellers
An out-of-state seller must register, collect, and remit New Jersey sales tax once it crosses either threshold: $100,000 in gross revenue from sales delivered into New Jersey in the current or prior calendar year, or 200 or more separate delivered transactions. Nontaxable sales count toward the revenue threshold. After crossing the line, a seller has 30 days to register, and the obligation runs through the end of the following calendar year.8New Jersey Division of Taxation. Remote Sellers Frequently Asked Questions
Property Tax
Property tax is the biggest tax bill most New Jersey homeowners see, and it is levied locally to fund municipalities, school districts, and counties. The governing statute is N.J.S.A. 54:4-1 et seq. Assessors set values at “true value,” meaning what a willing buyer and willing seller would agree to as of the October 1 pre-tax year assessment date.9Division of Taxation. General Property Tax Information The average homeowner paid just over $10,000 in 2024, though bills vary widely by town.
If your assessment looks too high, you can appeal to your county board of taxation. The standard deadline is April 1, or May 1 in municipalities that ran a revaluation or reassessment. Burlington, Gloucester, and Monmouth Counties use an alternative assessment calendar with a January 15 deadline.10NJ Division of Taxation. Assessment and Appeals These deadlines are strictly enforced. Miss one and you generally lose the right to challenge the assessment for that year.
ANCHOR Relief
The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program pays direct property tax relief. Homeowners who own and occupy a principal residence qualify with gross income up to $250,000; renters qualify up to $150,000.11Division of Taxation. Property Tax Relief Programs FAQs Homeowners at $150,000 or less receive a higher benefit than those in the $150,001 to $250,000 range, and residents 65 and older get a senior bonus. Renters receive a smaller benefit, also with a senior add-on. Benefit amounts can shift year to year, so check the Division’s current ANCHOR page before you apply.
Senior Freeze
The Senior Freeze reimburses eligible residents for property tax increases on their principal home. You qualify if you or your spouse were 65 or older by December 31 of the application year, or if you were receiving federal Social Security or Railroad Retirement disability benefits by that date. Combined annual income must fall below the program ceiling for both the base year and the application year. For 2025 the income limit is $172,475; for 2024 it was $168,268.12New Jersey Division of Taxation. Senior Freeze (Property Tax Reimbursement) Eligibility Requirements The threshold moves each year, so confirm before applying.
Inheritance Tax
New Jersey repealed its state estate tax in 2018, but the inheritance tax remains. Under N.J.S.A. 54:34-1 et seq., beneficiaries are grouped into classes, and the class determines whether tax is owed and at what rate.13Justia. New Jersey Revised Statutes Section 54-34-2 – Transfer Tax Rates
- Class A (spouses, domestic partners, parents, grandparents, children, grandchildren): no tax.
- Class C (siblings, sons-in-law, daughters-in-law): $25,000 exemption, then 11% on the next $1,075,000, rising through 13%, 14%, and 16% as the transfer grows.
- Class D (everyone else, including friends, unrelated individuals, cousins, nieces, and nephews): no exemption; 15% on the first $700,000 and 16% above that.
Charities and religious institutions are exempt regardless of class.14NJ Division of Taxation. Inheritance Tax Rates The tax is due within eight months of the date of death; unpaid balances accrue interest at 10% per year after that.15NJ Division of Taxation. Inheritance Tax Filing Requirements Before banks, brokerages, or title companies release a decedent’s New Jersey assets to beneficiaries, you generally need a tax waiver (Form 0-1) from the Inheritance Tax Branch.16New Jersey Division of Taxation. Lien on and Transfer of a Decedent’s Property: Tax Waiver Requirements
Business and Corporate Taxes
The Corporation Business Tax (CBT) is tiered by entire net income. Corporations at $50,000 or less pay 6.5%. Between $50,001 and $100,000 the rate is 7.5%. Above $100,000, the rate is 9%. S corporations follow a similar tier structure on the portion of income subject to federal corporate taxation.17Division of Taxation. Corporation Business Tax Overview
Partnerships with New Jersey-source income or at least one New Jersey resident partner owe a filing fee of $150 per partner, capped at $250,000, once the partnership has more than two owners. The partnership also prepays half of the current year’s fee toward the next year.18State of New Jersey. Partnership Filing Fee and Nonresident Partner Tax
Filing, Deadlines, and Penalties
Full-year residents file Form NJ-1040.19New Jersey Department of the Treasury. New Jersey Resident Income Tax Return Non-residents with New Jersey-source income use NJ-1040NR.20New Jersey Department of the Treasury, Division of Taxation. New Jersey Nonresident Income Tax Return NJ-1040NR Gather W-2s, 1099s for interest, dividends, and contract work, plus documentation for any credits. Part-year residents may need proof of residency dates. One credit to check: the New Jersey Earned Income Tax Credit, tied to your federal EITC and worth up to $3,218 for tax year 2025, depending on family size.21NJ Division of Taxation. NJ Earned Income Tax Credit – Know NJEITC You have to file NJ-1040 to claim it even if your income falls below the normal filing threshold.
For calendar-year filers, 2025 returns are due April 15, 2026.22NJ Division of Taxation. When to File and Pay You can file free through NJ Guided State Tax Filing, use approved third-party software, or mail a paper return, which processes more slowly.
Need more time? File Form NJ-630 by April 15 for an automatic extension. The condition: you must have paid at least 80% of your total tax by the original due date through withholding, estimated payments, or a payment submitted with the extension. Fall short of 80% and the extension is retroactively denied, with penalties and interest running from April 15.23New Jersey Division of Taxation. Application for Extension of Time to File New Jersey Gross Income Tax Return An extension buys time to file, not time to pay.
Late filing carries a 5% penalty of unpaid tax per month or partial month, capped at 25%. Late payment triggers a separate one-time 5% penalty on the outstanding balance, plus interest.24Legal Information Institute. New Jersey Administrative Code 18:35-6.1 – Extension of Time to File New Jersey Gross Income Tax Return If the failure was due to circumstances beyond your control, such as serious illness, records lost in a disaster, or reliance on incorrect professional advice, you can request penalty abatement from the Division of Taxation. The burden of proof is on you, and documentation is essential.