Personal Income Tax in New Jersey

April 13, 2006

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If you are a resident or nonresident of New Jersey and receive taxable income individually from property owned or business transacted in New Jersey, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you.

The following rates are applicable to the amount of income over the exempted amount:

Married Individuals Filing Joint Returns, Heads of Households and Surviving Spouses
Taxable Income	Amount of Tax
Not over $20,000	1.40%
Over $20,000, but not over $50,000	$280 plus 1.75% of excess over $20,000
Over $50,000, but not over $70,000	$805 plus 2.45% of excess over $50,000
Over $70,000, but not over $80,000	$1,295.50 plus 3.5% of excess over $70,000
Over $80,000, but not over $150,000	$1,645 plus 5.525% of excess over $80,000
Over $150,000, but not over $500,000	$5,512.50 plus 6.37% of excess over $150,000
Over $500,000	$27,807.50 plus 8.97% of excess over $500,000

Married Individuals Filing Separately, All Other Unmarried Individuals and Estates and Trusts
Taxable Income	Amount of Tax
Not over $20,000	1.40%
Over $20,000, but not over $35,000	$280 plus 1.75% of excess over $20,000
Over $35,000, but not over $40,000	$542.50 plus 3.5% of excess over $35,000
Over $40,000, but not over $75,000	$717.50 plus 5.525% of excess over $40,000
Over $75,000, but not over $500,000	$2,651.25 plus 6.37% of excess over $75,000
Over $500,000	$29,723.75 plus 8.97% of excess over $500,000