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New Jersey (NJ) Tax

3 min read


3 min read


Editor’s Note: Looking for information on the New Jersey (NJ) state tax? Read here to learn who pays, how to pay and more from the tax experts at H&R Block.

What is NJ State Tax?

state taxesNJ state tax is a tax levied by the state on your income earned within the state or as a resident of NJ. State income taxes, which vary by state, are a percentage of money that you pay to the state government based on the income you make at your job.

Similar to federal taxes, it is self-assessed and are often based on a percentage you pay the state government on your income. Some states have a flat tax rate or no tax at all, even.

Who Pays NJ Income Tax?

Just like the federal level, states impose additional income taxes on your earnings if you have a sufficient connection to the state, i.e. you are a resident of the state or you work within the state.

So, if you earn an income connected to NJ, you must pay NJ income tax. As a traditional W-2 employee, your NJ taxes will be drawn on each payroll period automatically. You will see this on your paycheck, near or next to the federal taxes.

If you work remotely, you should pay taxes to the state in which the work is performed. Employers will generally also pay taxes on wages paid to these workers to the same state, even if the employer has no physical presence in that state. However, some states may require that workers are taxed based on their employer’s location.

How Do You Pay NJ State Income Tax?

View the following instructions for how to pay NJ state income taxes from the state of New Jersey’s Division of Taxation website.

How Much Should You Pay in State Tax?

View the New Jersey tax rates.

When are NJ Tax Returns Due?

The state tax deadlines often coincide with the federal tax deadline, which typically is on April 15, unless it falls on a weekend. (See tax deadlines.)

How Do You Check If You’ve Paid Taxes in New Jersey?

If you want to make sure your state taxes were paid, contact the New Jersey Department of Taxation to see if your payment was received. The contact information is as follows:

Deducting NJ State Income Tax

If you pay NJ state income tax, the IRS allows you to claim a deduction on your federal tax return for what you paid. You can claim a state income tax deduction if you itemize deductions on your federal return.

To determine if you should itemize your deductions on your federal return, add up your calendar-year deductible expenses reported on the federal Schedule A, including your state income tax expense, to be greater than the standard deduction amount for your filing status. Single filers can claim a standard deduction of $12,200 on their federal tax return. So, if you pay more than that with income tax and other itemized deductions, then consider itemizing your taxes.

More Help with Taxes in New Jersey

Understanding your tax obligation is important. What’s even more important is how to deduct New Jersey tax from your federal taxes as an itemized deduction.

So, get help with H&R Block Virtual! With this service, we’ll match you with a tax pro with New Jersey tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your NJ taxes, including federal deductions for paying state taxes.

Prefer a different way to file? No problem – you can find New Jersey state tax expertise with all of our ways to file taxes.

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