New Jersey State Income Tax Calculator

Data Source and Methodology

Authoritative data source: New Jersey Division of Taxation — Gross Income Tax Rate Schedules (2024 and 2025).

• 2024 Rate Schedules: https://nj.gov/treasury/taxation/estimate-calc-2024.shtml (accessed current year)
• 2025 Rate Schedules: https://nj.gov/treasury/taxation/estimate-calc-2025.shtml (accessed current year)

Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.

Assumptions: This calculator applies the official progressive brackets for the selected filing status and subtracts NJ personal exemptions (taxpayer, spouse if applicable, dependents, and age/blind additions). It does not model every deduction or credit (e.g., property tax credit/deduction, retirement exclusions) and treats entered income as NJ‑taxable.

The Formula Explained

Personal exemptions:
$$
E = E_\text{self} + E_\text{spouse} + 1{,}500 \times D + 1{,}000 \times A
$$
where
- \(E_\text{self} = 1{,}000\)
- \(E_\text{spouse} = \begin{cases}1{,}000 & \text{if status ∈ {MFJ, QW}} \\ 0 & \text{otherwise}\end{cases}\)
- \(D\) = number of dependents
- \(A\) = count of age/blind additions (1 for self; +1 for spouse if MFJ/QW)

Taxable income:
$$
TI = \max(0, I - E)
$$

Progressive tax (piecewise):
Let brackets be \([b_0,b_1,\dots,b_n]\) with rates \([r_0,r_1,\dots,r_{n-1}]\).
Then total tax is:
$$
T = \sum_{k=0}^{n-1} r_k \cdot \max\!\big(0, \min(TI, b_{k+1}) - b_k \big)
$$

Effective and marginal rates:
$$
R_\text{eff} = \begin{cases}
\frac{T}{I} & \text{if } I>0 \\
0 & \text{otherwise}
\end{cases}
\qquad
R_\text{marginal} = r_j \text{ where } TI \in [b_j, b_{j+1})
$$

Glossary of Variables

• Tax year: 2024 or 2025 NJ rate schedules.
• Filing status: Single, Married Filing Jointly (MFJ), Married Filing Separately (MFS), Head of Household (HOH), Qualifying Widow(er) (QW).
• Annual NJ taxable income (I): Income subject to NJ tax. NJ generally does not allow 401(k)/HSA pre‑tax exclusions.
• Dependents (D): Count of qualifying dependents.
• Age/Blind additions (A): +1 if you are 65+ or blind; +1 for spouse if MFJ/QW and spouse is 65+ or blind.
• Personal exemptions (E): Sum of taxpayer/spouse base exemptions plus dependent and age/blind amounts.
• Taxable income (TI): Income after exemptions; floored at zero.
• Annual NJ tax (T): Sum of bracketed tax.
• Effective tax rate (R_eff): Annual NJ tax divided by income.
• Marginal bracket: The rate applied to the last dollar of TI.
• Per‑pay NJ tax: Annual tax divided by number of selected pay periods.

How It Works: A Step‑by‑Step Example

Suppose you are Single in 2024, with NJ‑taxable income of $120,000 and 2 dependents. You are not 65+ or blind.

1. Exemptions: E = $1,000 (self) + $1,500 × 2 dependents = $4,000.
2. Taxable income: TI = $120,000 − $4,000 = $116,000.
3. Apply Single brackets:
   • 0–20,000 @ 1.4%
   • 20,000–35,000 @ 1.75%
   • 35,000–40,000 @ 3.5%
   • 40,000–75,000 @ 5.525%
   • 75,000–500,000 @ 6.37% (this is the marginal band)
   Summing each band up to 116,000 yields T ≈ $5,262.95.
4. Effective rate: 5,262.95 / 120,000 ≈ 4.39%.
5. If paid bi‑weekly (26), per‑pay NJ tax ≈ $202.42.

Note: Results are estimates; actual tax may vary due to NJ‑specific deductions and credits.

Frequently Asked Questions (FAQ)