Tax Year 2017 New Jersey Income Tax Brackets (TY 2017 – 2018)

New Jersey – Single Tax Brackets

Tax Bracket Tax Rate
$0.00+ 1.4%
$20,000.00+ 1.75%
$35,000.00+ 3.5%
$40,000.00+ 5.53%
$75,000.00+ 6.37%
$500,000.00+ 8.97%

New Jersey – Married Filing Jointly Tax Brackets

Tax BracketTax Rate
$0.00+ 1.4%
$20,000.00+ 1.75%
$50,000.00+ 2.45%
$70,000.00+ 3.5%
$80,000.00+ 5.53%
$150,000.00+ 6.37%
$500,000.00+ 8.97%

Tax brackets and tax rates are ever-changing as the cost of living increases over time. New Jersey is no exception to the rule, as its tax brackets were previously updated back in 2009, while the tax rates witnessed an even earlier update in 2016. These rates are no constants though, as they are bound to inflate and are modified on a yearly basis to, as mentioned above, reflect the modifications that the cost of living is witnessing over time.

Understanding New Jersey Tax Bracket

New Jersey Income Tax Brackets In New Jersey, taxation is governed by ten marginal tax brackets, for which the marginal rates include 1.40%, 1.75%,2.45%, 3.50%, 5.53%, 6.37%, and 8.97%, . Each of these marginal rates is only applicable to earnings within the corresponding tax bracket.

Furthermore, tax brackets depend on the filing type, which means that married couples, for example, who file their income tax return jointly, will generally have broader tax brackets compared to those filing their tax return individually.

Understanding tax brackets may seem tricky, but it’s quite simple: you need to pay every New Jersey marginal tax rate starting from the lowest bracket to the highest tax bracket in which your last buck was earned. You don’t have one “tax bracket,” you have as many as your earnings go. Although for comparison sake, your New Jersey tax bracket is defined as the tax bracket in which you earned your last dollar in any tax period.

Understanding New Jersey Bracketed Income

Simply put, bracketed income tax is a flat amount that you have to pay for all your earnings to the highest bracket, along with a marginal percentage of any earnings that exceed the highest bracket. All of that is broken down in the chart below:

 

For earnings between $0.00 and $20,000.00, you’ll pay 1.4%
For earnings between $20,000.00 and $35,000.00, you’ll pay 1.75% plus $280.00
For earnings between $35,000.00 and $40,000.00, you’ll pay 3.5% plus $542.50
For earnings between $40,000.00 and $75,000.00, you’ll pay 5.53% plus $717.50
For earnings between $75,000.00 and $500,000.00, you’ll pay 6.37% plus $2,653.00
For earnings over $500,000.00, you’ll pay 8.97% plus $29,725.50
For earnings between $0.00 and $20,000.00, you’ll pay 1.4%
For earnings between $20,000.00 and $50,000.00, you’ll pay 1.75% plus $280.00
For earnings between $50,000.00 and $70,000.00, you’ll pay 2.45% plus $805.00
For earnings between $70,000.00 and $80,000.00, you’ll pay 3.5% plus $1,295.00
For earnings between $80,000.00 and $150,000.00, you’ll pay 5.53% plus $1,645.00
For earnings between $150,000.00 and $500,000.00, you’ll pay 6.37% plus $5,516.00
For earnings over $500,000.00, you’ll pay 8.97% plus $27,811.00

New Jersey Tax Deductions

Another essential feature of the New Jersey income tax that you need to understand is deductions, mainly the New Jersey Standard Deduction, the New Jersey Personal Exemption, and the New Jersey Dependent Deduction. These deductions are the most commonly encountered by taxpayers in this state, and their values for the tax year 2016 are the following:

Standard Deduction (S)Standard Deduction (M)Personal ExemptionDependent Exemption
$0.00$0.00$1000.00$1500.00

 

Breakdown of New Jersey Tax Deductions

New Jersey Standard Deduction: This is no standard deduction available in New Jersey, to every taxpayer should they fail to file an itemized deduction.

New Jersey Personal Exemption: This deduction is supported by the New Jersey income tax, and it is available for every taxpayer responsible for their own living expenses.

New Jersey Dependent Deduction: In addition to the New Jersey Personal Exemption, for each qualifying dependent under your wing, such as a child or a family member, for whom you support the living expenses, you can get an additional dependent exemption. These deductions aren’t specific to New Jersey, as the Federal Income Tax also has a standard deduction, personal exemptions, and dependent deductions, which are applicable in all states nationwide. Keep in mind that their amounts and rules may differ from those of New Jersey.

Disclaimer:

While we do our best to keep this list of New Jersey income tax rates up to date and complete, we cannot be held liable for errors or omissions. Is info on this page missing or out-of-date? Please let us know so we can fix it!

Please note:

Our New Jersey tax brackets are currently from the tax year 2016 (filed in April 2017). Many states adjust their tax brackets yearly, and we will update the StateName tax brackets for 2017 / 2018 as soon as they become available.