Retirement taxes by state
How New Jersey taxes retirement income in 2026
New Jersey's income tax rates run from 1.4% to 10.75%. Here's how New Jersey treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays about $84 in New Jersey income tax.
Updated October 2026 · 2026 tax year
New Jersey at a glance
- Income tax from 1.4% to 10.75%.
- Social Security isn't taxed.
- Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $75,000 ($100,000 joint) excluded from age 62, shrinking as income rises.
- Extra $1,000 deduction per person from age 65.
New Jersey retirement tax questions
Does New Jersey tax Social Security?
No. Social Security isn't taxed.
Does New Jersey tax 401(k) and IRA withdrawals?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $75,000 ($100,000 joint) excluded from age 62, shrinking as income rises. Also: extra $1,000 deduction per person from age 65.
Does New Jersey tax pensions?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $75,000 ($100,000 joint) excluded from age 62, shrinking as income rises.
Does New Jersey tax Roth conversions?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $75,000 ($100,000 joint) excluded from age 62, shrinking as income rises. Anything above that is taxed like other income.
What is New Jersey's income tax rate in 2026?
New Jersey's income tax rates run from 1.4% to 10.75%.
What retirees actually pay in New Jersey: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. For the retired couple, New Jersey ranks 26th lowest of the 50 states and DC.
| Household | Total income | New Jersey tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $84 | 0.1% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $0 | 0.0% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $1,575 | 2.0% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
New Jersey income tax brackets (2026)
Rates apply to New Jersey taxable income, after the state's deductions and the retirement breaks above.
| Single | Rate | Married filing jointly | Rate |
|---|---|---|---|
| Up to $20,000 | 1.4% | Up to $20,000 | 1.4% |
| $20,000 – $35,000 | 1.75% | $20,000 – $50,000 | 1.75% |
| $35,000 – $40,000 | 3.5% | $50,000 – $70,000 | 2.45% |
| $40,000 – $75,000 | 5.53% | $70,000 – $80,000 | 3.5% |
| $75,000 – $500,000 | 6.37% | $80,000 – $150,000 | 5.53% |
| $500,000 – $1,000,000 | 8.97% | $150,000 – $500,000 | 6.37% |
| Over $1,000,000 | 10.75% | $500,000 – $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
Details and limits
Retirement exclusion at 62+: $100k joint / $75k single with income up to $100k, 50% / 25% of that up to $150k, none above.
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.