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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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'' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); }); </script> </div> </div> ', 'scripts_for_layout' => '<title>New Jersey Tax Guide: What You’ll Pay in 2024 </title> <meta name="page_title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="robots" content="noindex, nofollow"/> <meta content="En español | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other" name="description"/> <meta content="New, Jersey, Tax, Guide, What, You, ll, Pay, in, 2024" name="keywords"/> <link rel="canonical" href="https://states.aarp.org/new-jersey/state-taxes-guide" /> <meta property="og:url" content="https://vccstaging.local.aarp.org/news/new-jersey-tax-guide-what-youll-pay-in-2024-nj-2024-02-15.html"/> <meta name="twitter:card" content="summary_large_image"/> <meta name="twitter:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="twitter:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> <meta property="og:type" content="article"/> <meta property="og:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta property="og:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> :root { --primaryColor: #ff1e3c; --primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include(/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html): failed to open stream: No such file or directory [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d78447-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-code').style.display = (document.getElementById('cakeErr6688441d78447-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-context').style.display = (document.getElementById('cakeErr6688441d78447-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d78447-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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Warning (2): include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.head.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [APP/View/Layouts/aarp_2023.ctp, line 53]Code Context<?php // if (!$nowrapper) (Globals::$language == 'es') ? include(APP . "/Resource/aarpe_global_js_es.html") : include(APP . "/Resource/aarpe_global_js.html"); ?>
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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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"/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? 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'' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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--primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include(/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html): failed to open stream: No such file or directory [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d78447-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-code').style.display = (document.getElementById('cakeErr6688441d78447-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-context').style.display = (document.getElementById('cakeErr6688441d78447-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d78447-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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--grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }'include - APP/View/Layouts/aarp_2023.ctp, line 53 include - APP/View/Layouts/aarp_2023.ctp, line 53 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::renderLayout() - CORE/Cake/View/View.php, line 546 View::render() - CORE/Cake/View/View.php, line 481 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? 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Warning (2): include(/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.resource.root.html) [<a href='http://php.net/function.include'>function.include</a>]: failed to open stream: No such file or directory [APP/View/Layouts/aarp_2023.ctp, line 54]Code Context<?php if (!$nowrapper): // MLW - Spanish wrappers TBD
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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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"/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? 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'' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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--primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include(/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html): failed to open stream: No such file or directory [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d78447-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-code').style.display = (document.getElementById('cakeErr6688441d78447-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-context').style.display = (document.getElementById('cakeErr6688441d78447-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d78447-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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--grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }'include - APP/View/Layouts/aarp_2023.ctp, line 54 include - APP/View/Layouts/aarp_2023.ctp, line 54 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::renderLayout() - CORE/Cake/View/View.php, line 546 View::render() - CORE/Cake/View/View.php, line 481 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? 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Warning (2): include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [APP/View/Layouts/aarp_2023.ctp, line 54]Code Context<?php if (!$nowrapper): // MLW - Spanish wrappers TBD
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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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"/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? 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'' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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--primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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En español | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.
New Jersey residents must file state taxes if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly:
Single filers:
Income* | Tax rate |
$0 to $20,000 | 1.4 percent |
Over $20,000 to $35,000 | 1.75 percent |
Over $35,000 to $40,000 | 3.5 percent |
Over $40,000 to $75,000 | 5.525 percent |
Over $75,000 to $500,000 | 6.37 percent |
Over $500,000 to $1 million | 8.97 percent |
Over $1 million | 10.75 percent |
Source: New Jersey Department of the Treasury
Joint filers:
Income* | Tax rate |
$0 to $20,000 | 1.4 percent |
Over $20,000 to $50,000 | 1.75 percent |
Over $50,000 to $70,000 | 2.45 percent |
Over $70,000 to $80,000 | 3.5 percent |
Over $80,000 to $150,000 | 5.525 percent |
Over $151,000 to $500,000 | 6.37 percent |
Over $500,000 to $1 million | 8.97 percent |
Over $1 million | 10.75 percent |
* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for itemized or standard deductions
Source: New Jersey Department of the Treasury
Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on.
Watch the video below to learn how to identify your 2023 federal income tax brackets.
Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, with a few exceptions. See the New Jersey retirement income tax bulletin for more information.
Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, can exclude all or part of their retirement income. The amount of the exclusion depends on your income and filing status.
In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the New Jersey Division of Taxation website.
AARP's Retirement Calculator can help you determine if you are saving enough to retire when — and how — you want.
Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s guide to nontaxable investment income for more information.
No. But you may pay federal taxes on a portion of your Social Security benefits, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.
AARP's Social Security Calculator can assist you in determining when to claim and how to maximize your Social Security benefits.
Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by assessors in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is the highest rate in the country.
In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the New Jersey Division of Taxation.
Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the Tax Foundation.
Find out more about how property taxes are calculated, whether you qualify for property tax relief, and how to appeal your assessment, on the New Jersey Division of Taxation’s website.
New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the size of the inheritance and their relationship to you.
For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000.
Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.
New Jersey offers several tax relief programs for older residents and retirees:
Property tax
Income tax
New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax.
Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021.
If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the New Jersey Division of Taxation website.
The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for federal tax returns. For help estimating your annual income taxes, use AARP's Tax Calculator.
For details on how to file for a six-month extension (until Oct. 15, 2024), visit the New Jersey Division of Taxation website. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid a late filing penalty.
Visit the Division of Taxation website to file your state taxes electronically, check your refund status, make payments and find more information.
This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.
Natalie Missakian covers federal and state policy and writes AARP’s Fighting for You Every Day blog. She previously worked as a reporter for the New Haven Register and daily newspapers in Ohio. Her work has also appeared in the AARP Bulletin, the Hartford Business Journal and other publications.
This story is provided by AARP New Jersey. Visit the AARP New Jersey page for more news, events, and programs affecting retirement, health care, and more.
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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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"/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); }); </script> </div> </div> ', 'scripts_for_layout' => '<title>New Jersey Tax Guide: What You’ll Pay in 2024 </title> <meta name="page_title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="robots" content="noindex, nofollow"/> <meta content="En español | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other" name="description"/> <meta content="New, Jersey, Tax, Guide, What, You, ll, Pay, in, 2024" name="keywords"/> <link rel="canonical" href="https://states.aarp.org/new-jersey/state-taxes-guide" /> <meta property="og:url" content="https://vccstaging.local.aarp.org/news/new-jersey-tax-guide-what-youll-pay-in-2024-nj-2024-02-15.html"/> <meta name="twitter:card" content="summary_large_image"/> <meta name="twitter:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="twitter:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> <meta property="og:type" content="article"/> <meta property="og:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta property="og:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> :root { --primaryColor: #ff1e3c; --primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include(/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html): failed to open stream: No such file or directory [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d78447-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-code').style.display = (document.getElementById('cakeErr6688441d78447-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-context').style.display = (document.getElementById('cakeErr6688441d78447-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d78447-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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Warning (2): include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.footer.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [APP/View/Layouts/aarp_2023.ctp, line 242]Code Context<?php // if (!$nowrapper) (Globals::$language == 'es') ? include(APP . "/Resource/aarpe_footer_es.html") : include(APP . "/Resource/aarpe_footer.html"); ?>
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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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'' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); }); </script> </div> </div> ', 'scripts_for_layout' => '<title>New Jersey Tax Guide: What You’ll Pay in 2024 </title> <meta name="page_title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="robots" content="noindex, nofollow"/> <meta content="En español | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other" name="description"/> <meta content="New, Jersey, Tax, Guide, What, You, ll, Pay, in, 2024" name="keywords"/> <link rel="canonical" href="https://states.aarp.org/new-jersey/state-taxes-guide" /> <meta property="og:url" content="https://vccstaging.local.aarp.org/news/new-jersey-tax-guide-what-youll-pay-in-2024-nj-2024-02-15.html"/> <meta name="twitter:card" content="summary_large_image"/> <meta name="twitter:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="twitter:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> <meta property="og:type" content="article"/> <meta property="og:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta property="og:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> :root { --primaryColor: #ff1e3c; --primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include(/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html): failed to open stream: No such file or directory [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d78447-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-code').style.display = (document.getElementById('cakeErr6688441d78447-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-context').style.display = (document.getElementById('cakeErr6688441d78447-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d78447-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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Warning (2): include(/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.bodyTargeting.html) [<a href='http://php.net/function.include'>function.include</a>]: failed to open stream: No such file or directory [APP/View/Layouts/aarp_2023.ctp, line 243]Code Context<?php if (!$nowrapper): // MLW - Spanish wrappers TBD
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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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'' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); }); </script> </div> </div> ', 'scripts_for_layout' => '<title>New Jersey Tax Guide: What You’ll Pay in 2024 </title> <meta name="page_title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="robots" content="noindex, nofollow"/> <meta content="En español | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other" name="description"/> <meta content="New, Jersey, Tax, Guide, What, You, ll, Pay, in, 2024" name="keywords"/> <link rel="canonical" href="https://states.aarp.org/new-jersey/state-taxes-guide" /> <meta property="og:url" content="https://vccstaging.local.aarp.org/news/new-jersey-tax-guide-what-youll-pay-in-2024-nj-2024-02-15.html"/> <meta name="twitter:card" content="summary_large_image"/> <meta name="twitter:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="twitter:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> <meta property="og:type" content="article"/> <meta property="og:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta property="og:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> :root { --primaryColor: #ff1e3c; --primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include(/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html): failed to open stream: No such file or directory [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d78447-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-code').style.display = (document.getElementById('cakeErr6688441d78447-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-context').style.display = (document.getElementById('cakeErr6688441d78447-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d78447-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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Warning (2): include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.bodyTargeting.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [APP/View/Layouts/aarp_2023.ctp, line 243]Code Context<?php if (!$nowrapper): // MLW - Spanish wrappers TBD
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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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'' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); }); </script> </div> </div> ', 'scripts_for_layout' => '<title>New Jersey Tax Guide: What You’ll Pay in 2024 </title> <meta name="page_title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="robots" content="noindex, nofollow"/> <meta content="En español | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other" name="description"/> <meta content="New, Jersey, Tax, Guide, What, You, ll, Pay, in, 2024" name="keywords"/> <link rel="canonical" href="https://states.aarp.org/new-jersey/state-taxes-guide" /> <meta property="og:url" content="https://vccstaging.local.aarp.org/news/new-jersey-tax-guide-what-youll-pay-in-2024-nj-2024-02-15.html"/> <meta name="twitter:card" content="summary_large_image"/> <meta name="twitter:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="twitter:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> <meta property="og:type" content="article"/> <meta property="og:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta property="og:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> :root { --primaryColor: #ff1e3c; --primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include(/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html): failed to open stream: No such file or directory [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d78447-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-code').style.display = (document.getElementById('cakeErr6688441d78447-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-context').style.display = (document.getElementById('cakeErr6688441d78447-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d78447-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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Warning (2): include(/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.resource.footer.root.html) [<a href='http://php.net/function.include'>function.include</a>]: failed to open stream: No such file or directory [APP/View/Layouts/aarp_2023.ctp, line 244]Code Contextinclude (APP . "Resource/aarp2_master.footer.html");
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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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'' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); }); </script> </div> </div> ', 'scripts_for_layout' => '<title>New Jersey Tax Guide: What You’ll Pay in 2024 </title> <meta name="page_title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="robots" content="noindex, nofollow"/> <meta content="En español | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other" name="description"/> <meta content="New, Jersey, Tax, Guide, What, You, ll, Pay, in, 2024" name="keywords"/> <link rel="canonical" href="https://states.aarp.org/new-jersey/state-taxes-guide" /> <meta property="og:url" content="https://vccstaging.local.aarp.org/news/new-jersey-tax-guide-what-youll-pay-in-2024-nj-2024-02-15.html"/> <meta name="twitter:card" content="summary_large_image"/> <meta name="twitter:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="twitter:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> <meta property="og:type" content="article"/> <meta property="og:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta property="og:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> :root { --primaryColor: #ff1e3c; --primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include(/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html): failed to open stream: No such file or directory [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d78447-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-code').style.display = (document.getElementById('cakeErr6688441d78447-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-context').style.display = (document.getElementById('cakeErr6688441d78447-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d78447-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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Warning (2): include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.resource.footer.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [APP/View/Layouts/aarp_2023.ctp, line 244]Code Contextinclude (APP . "Resource/aarp2_master.footer.html");
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$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp' $dataForView = array( 'content_for_layout' => '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? 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'' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); }); </script> </div> </div> ', 'scripts_for_layout' => '<title>New Jersey Tax Guide: What You’ll Pay in 2024 </title> <meta name="page_title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="robots" content="noindex, nofollow"/> <meta content="En español | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other" name="description"/> <meta content="New, Jersey, Tax, Guide, What, You, ll, Pay, in, 2024" name="keywords"/> <link rel="canonical" href="https://states.aarp.org/new-jersey/state-taxes-guide" /> <meta property="og:url" content="https://vccstaging.local.aarp.org/news/new-jersey-tax-guide-what-youll-pay-in-2024-nj-2024-02-15.html"/> <meta name="twitter:card" content="summary_large_image"/> <meta name="twitter:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta name="twitter:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> <meta property="og:type" content="article"/> <meta property="og:title" content="New Jersey Tax Guide: What You’ll Pay in 2024 "/> <meta property="og:description" content="Here’s what to know, whether you’re a resident who’s working or retired, or if you’re considering a move to New Jersey."/> <meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/9818984/2147483647/strip/true/crop/700x450+50+0/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2F1d%2F1d%2Ff12c3fa9464db654daf54b7e7ae1%2F800x450-new-jersey.jpg"/> :root { --primaryColor: #ff1e3c; --primaryTextColor: #2a2a2a; --linkTextColor: #1f66bd; --linkHoverColor: #1f66bd; --secondaryTextColor: #000000; --secondaryColor2: #000000; --secondaryColor3: #000000; --secondaryColor4: #000000; --secondaryColor5: #000000; --black: #000000; --white: #ffffff; --grey: #f0efed; --gridGutters: 30px; --modulePadding: 60px; --pageWidth: 86.11%; --maxPageWidth: 1240px; --horizontalAlignment: center; --fontFamily: 'Roboto', sans-serif; --headerBackgroundColor:#000000; --headerTextColor:#FFFFFF; --headerHeight:50px; --footerbackgroundColor:#000000; --footerTextColor:#918883; }', 'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP' ) $content_for_layout = '<div class="row twoColumnLayout"> <div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box"> <div> <div class="module-spacer"> <header><h1 class="article-headline">New Jersey Tax Guide: What You’ll Pay in 2024 </h1></header> <div class="posted-on"> Posted on 02/15/24 by <b>Natalie Missakian</b> </div> </div> <div class="module-spacer"> <span class="blog-content"><p><div class="RichTextArticleBody"> <div class="RichTextArticleBody-body"><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://states.aarp.org/new-jersey/impuestos-estatales-nueva-jersey?intcmp=AE-IMPUESTO-TOENG-TOGL-NJ" target="_blank" rel="noopener noreferrer">En español</a></span></span> | New Jerseyans pay some of the country’s highest property and income tax rates, but the sales tax falls in the middle compared with other states, and there are numerous tax breaks for older adults. Though there’s no tax on Social Security, the Garden State does tax inheritances and most pensions.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">The big picture:</h2></span></span><p></p><ul><li><b>Income tax: 1.4 percent to 10.75 percent</b><br>There are seven tax brackets for single filers in New Jersey (eight for joint filers), ranging from 1.4 percent to 10.75 percent. </li></ul><ul><li><b>Property tax: 2.23 percent of a home’s assessed value (average)</b><br>New Jersey has the highest average property tax rate in the U.S. at 2.23 percent of a home’s assessed value in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>. Taxes vary widely by county and municipality.</li></ul><ul><li><b>Sales tax: 6.6 percent (combined state and local average)</b><br>The state levies a 6.625 percent sales tax on goods and services, and there are no local sales taxes. However, some retailers in economically distressed cities are permitted to collect only half the sales tax rate. </li></ul><div class="Enhancement" > <div class="Enhancement-item"><figure class="Figure" data-alignment="center"> <img src="https://aarp-states.brightspotcdn.com/1d/1d/f12c3fa9464db654daf54b7e7ae1/800x450-new-jersey.jpg" alt="800x450-new-jersey.jpg" width="800" height="450"/> </figure> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is income taxed in New Jersey?</h2></span></span><p>New Jersey residents <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit23.shtml" target="_blank" rel="noopener noreferrer">must file state taxes</a></span></span> if they earned more than $10,000 individually or $20,000 if married filing jointly. There are seven brackets for single filers and eight for those who file jointly: <br><br><b>Single filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $35,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $35,000 to $40,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $40,000 to $75,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $75,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br><b>Joint filers:</b><br><br><br></p><table style="border:none;border-collapse:collapse;"><tbody><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income*</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$0 to $20,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.4 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $20,000 to $50,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.75 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $50,000 to $70,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.45 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $70,000 to $80,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $80,000 to $150,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.525 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $151,000 to $500,000</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $500,000 to $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.97 percent</td></tr><tr><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over $1 million</td><td colspan="1" rowspan="1" style="border-left:solid #000000 0.984375pt;border-right:solid #000000 0.984375pt;border-bottom:solid #000000 0.984375pt;border-top:solid #000000 0.984375pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.75 percent</td></tr></tbody></table><p><i>* Taxable income: Gross income (wages, tips, bonuses, etc.) after subtracting for </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit2.shtml" target="_blank" rel="noopener noreferrer"><i>itemized or standard deductions</i></a></span></span><br><br><i>Source: </i><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf" target="_blank" rel="noopener noreferrer"><i>New Jersey Department of the Treasury</i></a></span></span><br><br>Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $75,000 in taxable income, the first $20,000 is taxed at 1.4 percent, the next $20,000 to $35,000 is taxed at 1.75 percent, and so on. <br><br>Watch the video below to learn how to identify your 2023 federal income tax brackets.<br></p><div class="Enhancement" > <div class="Enhancement-item"><span class="VideoEnhancement" data-video-disable-history data-embeddedvideo-container> <div class="VideoEnhancement-player"><bsp-youtubeplayer data-video-player class="YouTubeVideoPlayer" data-player-id="fc9e4fb51e50b4ed3a940d0f18321677d" data-video-id="4PJfDNfg5KI" data-video-title="Understanding Your 2023 Income Tax"> <iframe id="YouTubeVideoPlayer-fc9e4fb51e50b4ed3a940d0f18321677d" allow="autoplay; fullscreen" src="https://www.youtube.com/embed/4PJfDNfg5KI?enablejsapi=1"></iframe> </bsp-youtubeplayer> </div> <div class="VideoEnhancement-title">Understanding Your 2023 Income Tax</div> </span> </div> </div><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are pensions or retirement income taxed in New Jersey?</h2></span></span><p>Pension and annuity income and IRA and 401(k) withdrawals are taxable in New Jersey, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">with a few exceptions</a></span></span>. See the New Jersey <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer">retirement income tax bulletin</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1&2.pdf" target="_blank" rel="noopener noreferrer"> </a></span></span>for more information.<br><br>Taxpayers who are 62 and older or have a disability, and whose total income is $150,000 or less, <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer">can exclude all or part of their retirement income</a></span></span>. The amount of the exclusion depends on your income and filing status.<br><br>In some cases, the taxable amount you report for state tax purposes may be different from what appears on your federal return. For more information on how to calculate your taxable retirement income, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit6.shtml#:~:text=If%20you%20use%20the%20Three,pension%20plan%20are%20fully%20taxable." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/work/retirement-planning/retirement_calculator.html" target="_blank" rel="noopener noreferrer">AARP's Retirement Calculator</a></span></span> can help you determine if you are saving enough to retire when — and how — you want.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about investment income?</h2></span></span><p>Most investment income is taxed as regular income in New Jersey, but there are exceptions. For instance, interest earned on government bonds or tuition savings programs isn’t taxable. Check the state’s <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf" target="_blank" rel="noopener noreferrer">guide to nontaxable investment income</a></span></span> for more information.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Does New Jersey tax Social Security benefits?</h2></span></span><p>No. But you may pay <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html" target="_blank" rel="noopener noreferrer">federal taxes on a portion of your Social Security benefits</a></span></span>, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.<br><br><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/social-security/benefits-calculator/" target="_blank" rel="noopener noreferrer">AARP's Social Security Calculator</a></span></span> can assist you in determining when to claim and how to maximize your Social Security benefits.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">How is property taxed in New Jersey?</h2></span></span><p>Property tax in New Jersey is a local tax that’s based on the value of your home, which is assessed annually by <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/aaddr.shtml" target="_blank" rel="noopener noreferrer">assessors</a></span></span> in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">the highest rate in the country</a></span></span>. <br><br>In New Jersey, counties decide what percentage of a home’s value is assessed, and all have chosen 100 percent of the home’s market value, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town's%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation</a></span></span>.<br><br>Residents of Bergen, Essex, Hunterdon, Morris, Passaic and Union counties pay some of the nation’s highest property taxes; they are among just 11 counties in the U.S. where the median property tax bill topped $10,000 in 2021, according to the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2023/" target="_blank" rel="noopener noreferrer">Tax Foundation</a></span></span>.<br><br>Find out more about <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">how property taxes are calculated</a></span></span>, whether you qualify for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/relief.shtml" target="_blank" rel="noopener noreferrer">property tax relief, </a></span></span>and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-appeal.shtml#:~:text=To%20appeal%20your%20property's%20assessment,the%20County%20Board%20of%20Taxation.&text=Occasionally%2C%20property%20owners%20make%20changes,for%20the%20following%20tax%20year." target="_blank" rel="noopener noreferrer">how to appeal</a></span></span> your assessment, on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/genlpt.shtml#:~:text=A%20town%27s%20general%20tax%20rate,value%20of%20his%20particular%20property." target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation’s website</a></span></span>. <br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What about sales and other taxes?</h2></span></span><p></p><ul><li><b>Sales and use tax: </b>New Jersey levies a 6.625 percent sales and use tax on most consumer goods, including cars, furniture and meals bought in restaurants, as well as some digital products and services, such as lawn maintenance, car repair and e-books. <br><br>There are no local sales taxes, but retailers in some cities may charge only half the state tax rate, resulting in a combined statewide average of 6.6 percent, according to the Tax Foundation. That puts New Jersey in the middle of the pack compared with other states.</li></ul><ul><li><b>Groceries, clothing, prescription and over-the-counter drugs and paper products for household use</b>, such as toilet paper and napkins, are exempt. See the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf" target="_blank" rel="noopener noreferrer">New Jersey Sales Tax Guide</a></span></span> for more information.</li></ul><p></p><ul><li><b>Use tax: </b>You’ll owe <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/su_10.shtml" target="_blank" rel="noopener noreferrer">use tax</a></span></span> if you bought a taxable item or service outside the state and didn’t pay sales tax, or paid sales tax at a lower rate than New Jersey’s. This includes items purchased in person, online, or by mail and brought or shipped to New Jersey. The use tax rate is the same as the sales tax.</li></ul><ul><li><b>Gas tax: </b>Drivers in New Jersey pay an additional 42.3 cents a gallon at the pump for gas. The tax on diesel fuel is 49.3 cents a gallon. The total is a combination of two taxes — the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/motorfuels.shtml" target="_blank" rel="noopener noreferrer">Motor Fuels Tax</a></span></span> and the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/petroleum.shtml" target="_blank" rel="noopener noreferrer">Petroleum Products Gross Receipts Tax</a></span></span>. The state sets the rate annually. Gasoline is exempt from sales tax.</li></ul><ul><li><b>Alcohol taxes: </b>New Jersey taxes beer at 12 cents a gallon, wine at 87.5 cents a gallon and liquor at $5.50 a gallon. These taxes are paid by the manufacturer, but some or all may be included in the retail price. Alcoholic beverages are also subject to sales tax.</li></ul><ul><li><b>Lottery: </b>The state taxes New Jersey Lottery winnings exceeding $10,000. Taxability is determined by the individual prize, not the cumulative amount of lottery winnings during the year. The <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml" target="_blank" rel="noopener noreferrer">state taxation division</a></span></span> has more information.<br></li></ul><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Will I or my heirs have to pay inheritance or estate tax?</h2></span></span><p>New Jersey phased out its estate tax in 2018, but the Garden State continues to levy an inheritance tax. The tax rate your heirs will pay depends on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/inheritance-estate/tax-rates.shtml" target="_blank" rel="noopener noreferrer">size of the inheritance</a></span></span> and their relationship to you. <br><br>For example, some immediate family members (including spouses, domestic partners, children, stepchildren, parents, grandparents and grandchildren) are exempt. Siblings, sons-in-law and daughters-in-law must pay a tax ranging from 11 to 16 percent on inheritances that exceed $25,000. <br><br>Nieces, nephews, cousins, friends and most other heirs are taxed 15 to 16 percent on inheritances of $500 or more.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are there any tax breaks for older New Jersey residents?</h2></span></span><p>New Jersey offers several tax relief programs for older residents and retirees:<br><br><b>Property tax</b><br></p><ul><li>The Senior Freeze Program reimburses eligible adults 65 and older for property tax increases on their primary home. In 2024, the state raised the income limits to qualify and no longer requires applicants to have 10 consecutive years of state residency. You now may be eligible if you earned no more than $150,000 in 2022 and $163,050 in 2023. Check the New Jersey Division of Taxation website for details <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml" target="_blank" rel="noopener noreferrer">about eligibility</a></span></span> and answers to <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/ptr/faq.shtml" target="_blank" rel="noopener noreferrer">frequently asked questions</a></span></span>. </li></ul><ul><li>If you’re 65 and older or have a disability and have been a New Jersey resident for at least a year, you may be eligible for a <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">$250 property tax deduction</a></span></span>. Surviving spouses 55 or older <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/lpt/lpt-seniordeduction.shtml" target="_blank" rel="noopener noreferrer">may also qualify</a></span></span>. If you’re a veteran, there are <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/lpt/lpt-deductions.shtml" target="_blank" rel="noopener noreferrer">additional tax breaks</a></span></span>.</li></ul><ul><li>Homeowners of any age with incomes up to $250,000 may qualify for a property tax rebate of up to $1,750 a year through the state’s ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Renters with incomes up to $150,000 may qualify for a $700 credit. Filing information for the upcoming ANCHOR season will be available later this year on the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/anchor/index.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.</li></ul><p><b>Income tax</b><br></p><ul><li>If you were 65 or older on the last day of the year for which you’re filing, you’re eligible for a $1,000 income tax exemption.</li></ul><ul><li>New Jersey has also expanded eligibility for its Earned Income Tax Credit (EITC) to include those 65 and older who do not have a dependent. Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/eitc/eitcinfo.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span> for details and to see if you qualify.</li></ul><ul><li>Taxpayers 62 and older whose total income is no more than $150,000 are exempt from paying taxes on some or all of their retirement income. Find more information on the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit7.shtml" target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>.</li></ul><ul><li>Many older adults may also be eligible for <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/military/taxcredits.shtml" target="_blank" rel="noopener noreferrer">military and veterans tax breaks</a></span></span>.</li></ul><p></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Are military benefits taxed in New Jersey? </h2></span></span><p>New Jersey does not tax military pensions or survivor’s benefits, and honorably discharged veterans are eligible for an additional $6,000 exemption of their state income tax. <br><br>Military pay is taxable for New Jersey residents, even when stationed out of state. Combat pay has been exempt since tax year 2021. <br><br>If New Jersey wasn’t your permanent home when you entered the service, you’re not considered a resident for tax purposes, even if you are stationed in the state. For more information about taxes on military benefits, visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/military/taxinformation.shtml" target="_blank" rel="noopener noreferrer">New Jersey Division of Taxation website</a></span></span>.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">What is the deadline for filing New Jersey taxes in 2024? </h2></span></span><p>The deadline to file a New Jersey state tax return is April 15, 2024, which is also the deadline for<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline" target="_blank" rel="noopener noreferrer"> </a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2024/irs-tax-deadlines.html" target="_blank" rel="noopener noreferrer">federal tax returns</a></span></span>. For help estimating your annual income taxes, use<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/1040_tax_calculator.html" target="_blank" rel="noopener noreferrer"> AARP's Tax Calculator.</a></span></span> <br><br>For details on how to file for a six-month extension (until Oct. 15, 2024), visit the<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit17.shtml#:~:text=File%20Form%20NJ%2D630%20to,and%20mailing%20Form%20NJ%2D630%20." target="_blank" rel="noopener noreferrer"> New Jersey Division of Taxation website</a></span></span>. You must request the extension on or before the original tax filing deadline and pay at least 80 percent of any taxes owed by that date to avoid<span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.state.nj.us/treasury/taxation/njit19.shtml" target="_blank" rel="noopener noreferrer"> a late filing penalty</a></span></span>. <br><br>Visit the <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.nj.gov/treasury/taxation/individuals/freqqiti.shtml" target="_blank" rel="noopener noreferrer">Division of Taxation website</a></span></span> to file your state taxes electronically, check your refund status, make payments and find more information.<br><br><br><i>This guide was originally published on Feb. 23, 2023. It has been updated to reflect new information.</i><br><br><i>Natalie Missakian covers federal and state policy and writes AARP’s </i>Fighting for You Every Day<i> blog. She previously worked as a reporter for the </i>New Haven Register <i>and daily newspapers in Ohio. Her work has also appeared in the AARP </i>Bulletin<i>, the </i>Hartford Business Journal <i>and other publications.</i><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h2 class="inline-heading">Also of Interest: </h2></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">States with Highest and Lowest Sales Tax Rate</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2020/state-sales-tax-rates.html" target="_blank" rel="noopener noreferrer">s</a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2023/how-to-get-free-tax-help.html" target="_blank" rel="noopener noreferrer">How to Get Free Help With Your Taxes </a></span></span></li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">Your 2024 Tax Brackets vs. 2023 Tax Bra</a></span></span><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/money/taxes/info-2022/income-tax-brackets-2023.html" target="_blank" rel="noopener noreferrer">ckets</a></span></span></li></ul><p><br><br><br></p><ul></ul></div> </div> </p></span> </div> </div> <p><i>This story is provided by AARP New Jersey. Visit the <a href="https://states.aarp.org/region/new-jersey/" target="_blank">AARP New Jersey</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p> </div> </div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script> <link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css"> <!-- bypass --> <style> a:focus, a:hover { text-decoration: underline; } h1.article-headline { margin: 0 0 1rem; } </style> <!-- <style> .Enhancement-item .Figure { margin-bottom: 24px; } .RichTextArticleBody-body ul { margin-bottom: 24px; } .RichTextArticleBody-body p{ margin: 12px 0; } .RichTextModule-items { clear: both; display: table; width: 100%; margin-bottom: 12px; } .VideoEnhancement>* { color: var(--primaryTextColor); font-size: 13px; font-weight: 400; line-height: 1.4; font-style: italic; background: #f0efed } @media only screen and (min-width: 768px) { .VideoEnhancement>* { font-size:14px; font-weight: 400; line-height: 1.47 } } .VideoEnhancement-title { padding: 20px } @media only screen and (min-width: 768px) { .VideoEnhancement-title { padding:30px } } .VideoEnhancement-player>* { position: relative; width: 100%; height: 0; padding-bottom: 56.25% } .VideoEnhancement iframe { border: 0; position: absolute; top: 0; left: 0; width: 100%; height: 100% } [data-video-player] { display: block; padding-bottom: 56.25%; height: 0; margin: 0 auto; } [data-video-player][data-aspect-ratio="4x3"] { padding-bottom: 56.25%; } [data-video-player][data-aspect-ratio="16x9"] { padding-bottom: 56.25% } </style> --></div><div class="module clearfix"><div class="module-spacer tout-homefit-750"> <a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" href="/hoven-sd/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a> </div></div></div> <div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default--> <div class="ar-basic-box module-spacer"> <header> <div class="pull-right"> <a href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS"> <img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" /> </a> </div> <h2 class="visible-lg">Upcoming AARP Events</h2> <h2 class="hidden-lg">Upcoming AARP Events</h2> </header> <div class="wrap"> <div class="ar-listing snippet"> <ul class="list"> <li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 8, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/smart-drivertek-virtual-workshop-discover-the-safety-benefits-of-new-car-technology-ryn8hl3hp8v.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-SMART-DRIVERTEK-VIRTUAL-WORKSHOP-DISCOVER-THE-SAFETY-BENEFITS-OF-NEW-CAR-TECHNOLOGY">Smart DriverTEK Virtual Workshop: Discover the Safety Benefits of New Car Technology</a></h2> <p class="time">Monday, Jul 8, 2024 at 6:00 p.m. CT</p> <p class="venue"></p> <p class="loc">Online Event</p> </li><li class="item" data-pageindex="1"> <h2 class="title"><a href="/aarp-event/fitness-strengthen-your-bones-qzn35fzyfjf.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-FITNESS-CLASS-STRENGTHEN-YOUR-BONES">Fitness Class: Strengthen Your Bones</a></h2> <p class="time">Monday, Jul 15, 2024 at 5:00 p.m. CT</p> <p class="venue">Zoom</p> <p class="loc">Online Event</p> </li> </ul> <p><a class="link-red" href="/hoven-sd/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p> </div> </div> </div> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_53475', size:'300x250'}); } </script> </div> </div> <pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-trace').style.display = (document.getElementById('cakeErr6688441d78447-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include(/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html): failed to open stream: No such file or directory [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d78447-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-code').style.display = (document.getElementById('cakeErr6688441d78447-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d78447-context').style.display = (document.getElementById('cakeErr6688441d78447-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d78447-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre><pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-trace').style.display = (document.getElementById('cakeErr6688441d792f1-trace').style.display == 'none' ? '' : 'none');"><b>Warning</b> (2)</a>: include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app//Resource/experience.master.resource.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [<b>APP/Lib/Modules.php(13) : eval()'d code</b>, line <b>1</b>]<div id="cakeErr6688441d792f1-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-code').style.display = (document.getElementById('cakeErr6688441d792f1-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6688441d792f1-context').style.display = (document.getElementById('cakeErr6688441d792f1-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6688441d792f1-context" class="cake-context" style="display: none;">$module = array( '_id' => '66158db0e9dff2b1fd9cafcd', 'module_id' => '1098', 'name' => 'RHS - Events Experience', 'type' => 'php', 'data' => '<?php include(APP . "/Resource/experience.master.resource.root.html"); ?>', 'css' => '', 'script' => '', 'cache_time' => '', 'localize' => '0' ) $obj = false</pre><pre class="stack-trace">include - APP/Lib/Modules.php(13) : eval()'d code, line 1 eval - APP/Lib/Modules.php(13) : eval()'d code, line 1 Modules::render() - APP/Lib/Modules.php, line 13 Modules::load() - APP/Lib/Modules.php, line 29 Localize::getModule() - APP/Lib/Localize.php, line 294 Localize::replace() - APP/Lib/Localize.php, line 219 Modules::render() - APP/Lib/Modules.php, line 9 include - APP/View/Elements/display.ctp, line 13 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 963 AppController::renderPage() - APP/Controller/AppController.php, line 136 BlogsController::display() - APP/Controller/BlogsController.php, line 81 ReflectionMethod::invokeArgs() - [internal], line ?? Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167</pre></div></pre> <div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;"> <img class="img-responsive image" title="image of two AARP membership cards" alt="image of two AARP membership cards" src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png"> <div class="title">Only $12 your first year with Automatic Renewal</div> <ul class="list"> <li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li> <li>Discounts on travel and everyday savings</li> <li>Subscription to AARP The Magazine</li> <li>FREE second membership</li> </ul> <div class="action"> <a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Join AARP</a> <div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-HOVEN-SD">Renew</a> or <a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div> </div> </div> <style> .membership-tout {padding:16px 20px;} .membership-tout .list li { margin: 0; } </style> <div aria-hidden="true" class="aarpe-ad-wrapper"> <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250"> <script type="text/javascript"> if(typeof AARP.ads !== 'undefined'){ AARP.ads.slots({ id:'300x250_93505', size:'300x250'}); } </script> </div> </div> <div class="module-spacer text-center"> <div class="fb-page" alt="Image of AARP South Dakota Facebook Page" title="Image of AARP South Dakota Facebook Page" data-href="https://www.facebook.com/AARPSouthDakota" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true"> <blockquote cite="https://www.facebook.com/AARPSouthDakota" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/AARPSouthDakota">Facebook</a></blockquote> </div> </div> <div class="ar-basic-box module-spacer"> <header> <h2>Contact AARP<br />South Dakota</h2> </header> <div class="wrap"> <div class="ar-quick-list module-spacer"> <ul class="list-unstyled"> <li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:SDAARP@aarp.org" target="_blank" rel="noopener">SDAARP@aarp.org</a></li> <li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/south-dakota/" target="_blank" rel="noopener">AARP South Dakota</a></li> <li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/contact-aarp-south-dakota/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-HOVEN-SD" target="_blank" rel="noopener">Contact Us</a></li> </ul> </div> <a href="https://www.facebook.com/AARPSouthDakota" target="_blank" rel="noopener" aria-label="Open Facebook"><img alt="Facebook icon" title="Facebook icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png"></a> <a href="https://twitter.com/aarpsd" target="_blank" rel="noopener" aria-label="Open Twitter"><img alt="Twitter icon" title="Twitter icon" src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png"></a> </div> </div> </div></div> <div class="col-md-8 left-rail left-bot"></div> <div class="col-md-4 right-rail right-bot thin-rhs"></div> </div> <div class="row oneColumnLayout"> </div> <div class="row oneColumnLayout"> <div class="col-md-12"><!-- script to activate navbar --> <script type="text/javascript"> jQuery(".channelBarMain ul.left li a").click(function() { window.location = jQuery(this).attr('href'); 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