New Jersey

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New Jersey State Income Tax Rates Forms and Filing

The New Jersey rates stayed the same in 2011 as they were in 2010. If you are a person who became a resident of New Jersey during the tax year in question or if you moved out of the state (after previously being a resident) and your income is greater than $10,000 ($20,000 if married filing jointly) then you will be required to file a New Jersey income tax return to report the portion of income you made while in New Jersey.

Here are the income tax rate brackets:

$0 – $20,000 – 1.4%
$20,000 – $35,000 – 1.75%
$35,000 – $40,000 – 3.5%
$40,000 – $75,000 – 5.53%
$75,000 – $500,000 – 6.37%
$500,000+ – 8.97%

$0 – $20,000 – 1.4%
$20,000 – $50,000 – 1.75%
$50,000 – $70,000 – 3.5%
$70,000 – $80,000 – 5.53%
$80,000 – $500,000 – 6.37%
$500,000+ – 8.97%

A single filer can take a personal exemption of $1,000, if married filing jointly you can take $2,000, and you can take $1,500 for each dependent. You can also take an exemption if you are 65 years of age or older.


New Jersey implements a 7% sales tax on goods besides food, prescription drugs, non-prescription drugs, clothing, and footwear. In Atlantic City and Cape May County, however, different items are subject to different sales tax. You can imagine that this probably has something to do with tourism and clothing and food. Just know that some counties will have the authority to implement different sales tax rates.

The gasoline excise tax is quite low in the state of New Jersey at just 15.5 cents per gallon and the diesel fuel excise tax isn’t much different at 17.5 cents per gallon. They have a moderate cigarette excise tax of $2.70 per pack. There is no deduction allowed for sales tax paid, but New Jersey doesn’t tax your social security benefits or your unemployment benefits.

Just remember that the states are suggesting year after year that tax filers should file state tax returns online as it makes the process more efficient and it’s also healthier for the environment.


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