New Jersey Income Tax Calculator
Understanding New Jersey Taxes (2024)
Calculating your New Jersey taxes involves understanding the state's progressive tax system, federal obligations, and FICA contributions. This calculator helps you estimate your take-home pay by considering these key components.
New Jersey State Income Tax
New Jersey has a progressive income tax system with multiple tax brackets for 2024, ranging from 1.4% to 10.75% depending on your income and filing status.
- Tax Brackets: New Jersey has tax brackets with rates starting at 1.4% and going up to 10.75% for income over $1 million.
- Taxable Income: New Jersey calculates taxable income differently from the federal government, with its own definition of gross income and adjustments.
- No Standard Deduction: Unlike the federal government and many states, New Jersey does not offer a standard deduction.
- Dependent Exemptions: New Jersey offers a $1,500 dependent exemption for each qualifying dependent.
- Tax Credits: New Jersey offers various credits including the property tax credit and earned income credit, which this calculator does not account for.
Local Taxes
New Jersey does not allow municipalities to levy local income taxes. This differs from neighboring states like New York and Pennsylvania, which have local income taxes in some areas.
Federal Income Tax
Federal income tax is based on federal tax brackets, your filing status, deductions (standard or itemized), and allowances claimed on your W-4. Pre-tax deductions like 401(k) or HSA contributions reduce your federal taxable income.
FICA Taxes (Social Security & Medicare)
FICA taxes fund Social Security and Medicare. These are typically withheld by employers.
- Social Security: 6.2% on income up to the annual limit ($168,600 for 2024).
- Medicare: 1.45% on all income. An additional 0.9% Medicare tax applies to income above certain thresholds ($200,000 for Single, $250,000 for MFJ).
Other New Jersey Taxes (Not Calculated Here)
While this calculator focuses on income taxes, be aware of other taxes in New Jersey:
- Sales Tax: New Jersey has a state sales tax of 6.625%. This is a relatively high rate, but there are exemptions for necessities like groceries and clothing.
- Property Tax: Property taxes in New Jersey are among the highest in the nation, with rates varying by municipality.
- Estate Tax: New Jersey eliminated its estate tax as of January 1, 2018.
- Inheritance Tax: New Jersey still has an inheritance tax, but it doesn't apply to transfers to immediate family members.
Disclaimer: This information is for general guidance for the 2024 tax year and is not tax advice. Consult a tax professional for personalized advice.