New Jersey Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

Personal Exemptions

New Jersey uses a personal exemption system rather than standard deductions. All taxpayers can claim the following exemptions:

Regular Personal Exemption

Amount: $1,000 per person

• Each taxpayer can claim a $1,000 exemption
• Spouses filing jointly each claim $1,000 ($2,000 total)
• You can claim this exemption even if someone else claims you as a dependent

Source: https://www.nj.gov/treasury/taxation/njit2.shtml

Age 65 or Older Exemption

Amount: $1,000 additional per person

• Available if you were 65 or older on the last day of the tax year (December 31, 2025)
• Spouses can each claim this exemption if both qualify
• Cannot be claimed for domestic partners or dependents

Source: https://www.nj.gov/treasury/taxation/njit2.shtml

Blind or Disabled Exemption

Amount: $1,000 additional per person

• Available if you were blind or disabled on the last day of the tax year
• Spouses can each claim this exemption if both qualify
• Cannot be claimed for domestic partners or dependents
• Medical proof required (letter from doctor acceptable)

Source: https://www.nj.gov/treasury/taxation/njit2.shtml

Veteran Exemption

Amount: $6,000 additional per person

Available if you are a military veteran who was:

• Honorably discharged or released under honorable circumstances from active duty
• In the U.S. Armed Forces, reserve component, or National Guard

Both spouses can claim this exemption if both are qualified veterans.

Important: This exemption is available for ALL honorably discharged veterans, regardless of when or where they served. As of 2020, the wartime service requirement was eliminated.

Source: https://www.nj.gov/treasury/taxation/njit2.shtml

Dependent Exemptions

Dependent Children and Other Dependents

Amount: $1,500 per dependent

You can claim a $1,500 exemption for each dependent who qualifies as your dependent for federal income tax purposes.

Requirements:

• Must be claimed as a dependent on your federal return
• Must provide full name, Social Security number, and year of birth
• New Jersey follows federal guidelines for determining qualified dependents

Source: https://www.nj.gov/treasury/taxation/njit3.shtml

Dependent Attending College Exemption

Amount: $1,000 additional per dependent student

You can claim an additional $1,000 exemption for each dependent student if ALL of the following requirements are met:

• Student must be claimed as a dependent on the tax return
• Student must be under age 22 on the last day of the tax year
• Student must attend full-time (as determined by the school)
• Student must spend at least some part of each of five calendar months of the tax year at school
• Educational institution must be an accredited college or post-secondary school with regular faculty, curriculum, and attending student body

Total per college-attending dependent: $2,500 ($1,500 dependent exemption + $1,000 college exemption)

Source: https://www.nj.gov/treasury/taxation/njit2.shtml

Example Exemption Calculations

Example 1: Single Taxpayer

• Personal exemption: $1,000
• Total exemptions: $1,000

Example 2: Single Taxpayer, Age 68, Honorably Discharged Veteran

• Personal exemption: $1,000
• Age 65+ exemption: $1,000
• Veteran exemption: $6,000
• Total exemptions: $8,000

Example 3: Married Filing Jointly, Two Children in College

• Personal exemptions (2 × $1,000): $2,000
• Dependent exemptions (2 × $1,500): $3,000
• College student exemptions (2 × $1,000): $2,000
• Total exemptions: $7,000

Example 4: Married Filing Jointly, Both Age 67, Both Veterans, Three Dependents

• Personal exemptions (2 × $1,000): $2,000
• Age 65+ exemptions (2 × $1,000): $2,000
• Veteran exemptions (2 × $6,000): $12,000
• Dependent exemptions (3 × $1,500): $4,500
• Total exemptions: $20,500

New Jersey Income Tax Deductions

Unlike the federal system, New Jersey does not have a standard deduction. However, New Jersey allows specific deductions:

Medical Expenses Deduction

You can deduct qualified medical expenses that exceed 2% of your gross income.

Source: https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf

Alimony and Separate Maintenance Payments

You can deduct court-ordered alimony or separate maintenance payments.

Note: New Jersey follows federal law. For divorce or separation agreements executed after December 31, 2018, alimony is neither deductible by the payer nor taxable to the recipient.

Source: https://www.nj.gov/treasury/taxation/njit13.shtml

Self-Employed Health Insurance Deduction

If you are self-employed, you can deduct health insurance premiums paid for:

• Yourself
• Your spouse/civil union partner or domestic partner
• Your dependents

Limitation: Deduction cannot exceed your earned income from the business under which the insurance plan was established.

Source: https://www.nj.gov/treasury/taxation/njit13.shtml

Organ/Bone Marrow Donation Deduction

If you donated an organ or bone marrow for transplantation, you can deduct up to $10,000 of unreimbursed expenses for:

• Travel
• Lodging
• Lost wages related to the donation

Requirements:

• Deduction must be taken in the year the transplant occurs
• Available for taxpayer, spouse (if filing jointly), or any dependents
• Combined deduction cannot exceed $10,000

Source: https://www.nj.gov/treasury/taxation/njit13.shtml

Qualified Conservation Contribution

Certain conservation contributions may be deductible.

Source: https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf

Health Enterprise Zone Deduction

Available for taxpayers who qualify under specific Health Enterprise Zone provisions.

Source: https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf

Property Tax Deduction/Credit

Property Tax Deduction

Qualified homeowners and tenants are eligible for a deduction for property taxes paid on their New Jersey principal residence.

Maximum deduction: $15,000

Basic requirements:

• Must be a New Jersey resident
• Property must be your principal residence
• Property taxes must have been paid during the calendar year

Source: https://www.nj.gov/treasury/taxation/njit13.shtml

Property Tax Credit (Refundable)

Alternatively, certain taxpayers may qualify for a refundable property tax credit:

Eligibility:

• Age 65 or older, OR
• Blind or disabled

This is a refundable credit, meaning you can receive it even if you owe no tax.

Source: https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf

Part-Year Resident Rules for Exemptions and Deductions

Part-year residents must prorate their exemptions based on the number of months they were New Jersey residents during the tax year.

Proration calculation:

(Total Exemptions × Months as NJ Resident) ÷ 12 = Prorated Exemptions

Note: For this calculation, 15 days or more in a month counts as a full month of residence.

Example:

• Total exemptions: $5,000
• New Jersey resident: 8 months
• Prorated exemptions: ($5,000 × 8) ÷ 12 = $3,333

Source: https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git6.pdf