Gross Income Tax Overview
Gross Income Tax is levied on gross income earned or received by New Jersey resident and nonresident individuals, estates, and trusts.
New Jersey has a graduated Income Tax rate, which means it imposes a higher tax rate the higher the income. See Tax Rate Tables to calculate your tax.
Filers with income of $10,000 or less for the entire year (single filers, married persons filing separately, and estates and trusts), and $20,000 or less for the entire year (married couples filing jointly, heads of household, and surviving spouses) pay no tax.
Any reference to a spouse also refers to a partner to a civil union recognized under New Jersey law.
- Taxpayer, $1,000.
- Taxpayer's spouse/civil union partner or domestic partner who does not file separately, $1,000.
- Taxpayer 65 years old or more, additional $1,000; same for spouse/civil union partner age 65 or older who does not file separately.
- Blind or totally disabled taxpayer, additional $1,000; same for blind or totally disabled spouse/civil union partner who does not file separately.
- Veteran's Exemption, $6,000; for military veteran, honorably discharged or released under honorable circumstances from active duty; same for spouse/civil union partner who qualifies and does not file separately.
- Taxpayer's dependent, $1,500.
- Taxpayer's dependent under age 22 and attending college full-time, additional $1,000.
- Payments of alimony or for separate maintenance are deductible by the payer if reported as income by the payee.
- Unreimbursed medical expenses in excess of 2% of gross income; qualified medical savings account contributions; and for the 'self-employed,' qualified health insurance costs.
- Property tax deduction (or credit).
- Qualified conservation contribution.
- Deduction for eligible taxpayers who provide primary care medical and/or dental services at a qualified practice located in or within five miles of a Health Enterprise Zone.
- Organ/Bone Marrow Donor Deduction.
- For income taxes paid to other jurisdictions. Income earned outside of New Jersey and taxed by the other jurisdiction is subject to New Jersey Income Tax. This credit reduces your New Jersey tax based on the percentage of income that was taxed by the other jurisdiction(s) in the same year. It is not necessarily a dollar-for-dollar credit and cannot exceed the New Jersey tax amount.
- Amounts withheld by an employer and payments
of estimated tax, including any payments made in connection with the sale or transfer of real property by a nonresident, estate, or trust.
- Amounts paid by an S corporation on behalf of a shareholder.
- Amounts paid by a partnership on behalf of a partner.
- New Jersey Earned Income Tax Credit.
- Excess unemployment and disability insurance contributions withheld.
- Property tax credit (or deduction).
- Child and Dependent Care Credit.
- Sheltered Workshop Tax Credit.
- Gold Star Family Counseling Credit.
- Property tax credit (or deduction).
- Wounded Warriors Caregivers Credit.
- Organ/Bone Marrow Donor Credit.
- Garden State Film and Digital Media Jobs Act Credit
- Employers of Employees with Impairments
- Personal Protective Equipment (PPE) Manufacturing Credit
- New Jersey College Affordability Act
All employers and others who withhold New Jersey Income Tax are required to file quarterly returns of tax withheld and to remit tax on a monthly, quarterly, or weekly basis.
Those with prior year withholdings of $10,000 or more are required to remit the Income Tax withheld by means of Electronic Funds Transfer (EFT) on or before the Wednesday of the week following the week containing the payday(s) on which taxes were withheld.
Certain employers of household workers may report and remit Gross Income Tax withheld on an annual basis.