1. What is New Jersey State Income Tax?

New Jersey state income tax is a progressive tax system with marginal rates ranging from 1.4% to 10.75% based on taxable income brackets. It applies to residents and non-residents earning income in New Jersey.

2. How Does the Calculator Work?

The calculator uses the New Jersey tax formula:

Where:

• \( Taxable\ Income \) — Your total taxable income after deductions and exemptions
• \( Marginal\ Rate \) — The applicable tax rate based on your income bracket (1.4% to 10.75%)

Explanation: New Jersey uses a progressive tax system where higher income levels are taxed at higher rates across different brackets.

3. Importance of NJ Tax Calculation

Details: Accurate New Jersey tax calculation is essential for proper tax planning, budgeting, compliance with state tax laws, and avoiding underpayment penalties.

4. Using the Calculator

Tips: Enter your taxable income in dollars and the applicable marginal tax rate as a percentage. Ensure the rate falls within New Jersey's valid range of 1.4% to 10.75%.

5. Frequently Asked Questions (FAQ)

Q1: What are New Jersey's current tax brackets?
A: New Jersey has multiple tax brackets ranging from 1.4% on the first $20,000 to 10.75% on income over $5 million for the 2024 tax year.

Q2: Who must pay New Jersey state income tax?
A: New Jersey residents and non-residents who earn income from New Jersey sources must file and pay state income tax.

Q3: When are New Jersey state taxes due?
A: New Jersey state income tax returns are typically due on April 15th, matching the federal deadline.

Q4: Are there deductions available for NJ taxpayers?
A: Yes, New Jersey offers various deductions including property tax deductions, retirement income exclusions, and dependent deductions.

Q5: How does NJ tax compare to neighboring states?
A: New Jersey has some of the highest state income tax rates in the region, particularly for high-income earners, compared to Pennsylvania and Delaware.