How much property tax can I deduct on my New Jersey return?

New Jersey allows homeowners and tenants to deduct up to $15,000 in property taxes paid on their principal residence, or take a refundable $50 property tax credit if they do not benefit from the deduction.

Does New Jersey have a reciprocal tax agreement with Pennsylvania?

Yes. Under the NJ/PA Reciprocal Agreement, compensation paid to NJ residents working in PA is taxed only by NJ, and compensation paid to PA residents working in NJ is taxed only by PA.

USAUpdated for 2026Taxes

New Jersey State Income Tax Calculator (NJ-1040) 2026

Calculate your estimated New Jersey Gross Income Tax liability across progressive state tax brackets (1.4% to 10.75%), personal exemptions, and NJ residential property tax deduction.

Taxes & Duties Income Tax & Brackets Salaries & Monthly Wages

Calculated Result

Estimated New Jersey Income Tax

$3,288.25

Calculator Inputs

New Jersey Gross Income

Quick select:

New Jersey Filing Status

Total Personal Exemptions ($1,000 each)

exemptions

Quick select:

Estimated New Jersey Income Tax

$3,288.25

Effective New Jersey Tax Rate

3.46 %

Monthly State Tax Withholding

$274.02

Total NJ Deductions & Exemptions

$10,000

NJ Property Tax Deduction (Up to $15k)

$9,000

New Jersey Net Taxable Income

$85,000

New Jersey taxes gross income across progressive statutory tax brackets ranging from 1.4% up to 10.75% for high earners over $1,000,000.

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: New Jersey Gross Income Tax Act (N.J.S.A. 54A:1-1 - Progressive Brackets up to 10.75% & Property Tax Deduction)Last Verified: 2026-09-04

Calculation Methodology

NJ Gross Income = Taxable Wages + Other Income. Deductions = (Exemptions * $1,000) + min(15000, Property Taxes Paid). NJ Taxable Income = max(0, Gross Income - Deductions). Tax is calculated progressively across marginal NJ brackets.

Frequently Asked Questions

For single filers, NJ rates are: 1.4% up to $20,000; 1.75% on $20,001–$35,000; 3.5% on $35,001–$40,000; 5.525% on $40,001–$75,000; 6.37% on $75,001–$500,000; 8.97% on $500,001–$1,000,000; and 10.75% over $1,000,000.

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New Jersey State Income Tax Calculator (NJ-1040) 2026

Calculator Inputs

Calculation Methodology

Frequently Asked Questions

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