If you are preparing to file an income tax return in New Jersey, you'll want to know what forms you need, where and how to file them and how much you can expect to be taxed. The state has a progressive income tax structure, with rates depending on taxable income.
Who Must File New Jersey Income Taxes?
New Jersey full-year and part-year residents of all ages must file a New Jersey state tax return if they meet the gross income requirements for tax filing:
- $10,000 for single filing or filing separately
- $20,000 for filing jointly or qualifying widower
You are a part-year resident if you moved to or from the state during the tax year. You will only pay taxes on income received during your New Jersey residency.
If in the same tax year, you moved from New Jersey and continued to earn income from a New Jersey source, you will then file a nonresident return for that part of the year, in addition to the resident return for the time you lived in New Jersey.
If you earned income from a New Jersey source at any point while you were a nonresident, you must file a return if your income for the entire year meets the income requirements above.
If you earned money from New Jersey while not living in the state and living in the state in the same year, you may have to file both a resident and nonresident New Jersey income tax return.
What Are the Forms to Use?
Full-year and part-year residents file New Jersey Form NJ-1040. There is no separate form for part-year residents.
Nonresidents who earned income from New Jersey while living somewhere else file Form NJ-1040NR. If a nonresident also earned money in New Jersey while living in the state during part of the year, an NJ-1040 may also be required.
The NJ Division of Taxation tax form instructions for residents and nonresidents provides information on how to fill out the forms and schedules correctly. Additional individual tax forms are also available.
New Jersey residents filing an amended return submit Form NJ-1040 X, while nonresidents file the NJ-1040NR and indicate "Amended" in bold in the upper right-hand corner.
What Is the Tax Rate in New Jersey?
New Jersey state tax is applied to the same earnings and income subject to federal tax and ranges from 1.4 percent to 10.75 percent, depending on filing status and taxable income:
- 1.4 percent in the $0 and $20,000 range or those filing single or joint/head of household
- 1.75 percent for singles in the $20,001 to $35,000 range or those filing joint/head of household in the $20,001 to $50,000 range
- 2.45 percent for those filing joint/head of household in the $50,001 to $70,000 range
- 3.5 percent for singles in the $35,001 to $40,000 range or those filing joint/head of household in the $70,001 to $80,000 range
- 5.525 percent for singles in the $40,001 to $75,000 range or those filing joint/head of household in the $80,001 to $150,000 range
- 6.37 percent for singles in the $75,001 to $500,000 range or those filing joint/head of household in the $150,001 to $500,000 range
- 8.97 percent for singles in the $500,001 to $5,000,000 range or those filing joint/head of household
- 10.75 percent for above $5,000,000 for those filing single or joint/head of household
In tax year 2021, some notable changes regarding retirement income exclusions may reduce your taxable income if you are retired.
What Are the Filing Deadlines and Extension Process?
New Jersey state tax returns must be postmarked or received by Monday, April 18, 2022. Extension requests are due that same day.
Taxpayers in New Jersey may request a six-month extension to file with Form NJ-630 on paper via mail or by submitting it online. With an approved extension, your completed return is due October 17, 2022.
If taxes are owed with your return, there is no extension to pay. At least 80 percent of taxes owed must be paid by April 18 to avoid a late filing penalty. If 80 percent is not received, the extension will be denied, and you will be charged penalties and interest from the original due date.
You do not need to file form NJ-630 if you pay 80 percent of your taxes or file for an extension with the Internal Revenue Service (IRS). In that case, enclose a copy of your federal extension application when you submit your New Jersey tax return.
What Are the Penalties for Late Filing and Underpayment of Taxes?
The New Jersey Division of Taxation charges a late filing penalty of 5 percent of the tax due. The penalty will be charged every month that the tax is unpaid, up to 25 percent of the total due. New Jersey may also charge a $100 monthly penalty.
Every month the tax remains unpaid, you will be charged the Prime Rate + 3 percent, compounded annually. If your account remains delinquent and goes to collection, you will also be charged collection fees and related expenses.
Where Do I Mail/E-file My New Jersey Return?
To submit a paper return, mail the form using the envelope in the tax booklet or another envelope.
If you are a resident submitting a return with no tax due, mail it to the State of New Jersey, Division of Taxation, Revenue Processing Center - Refunds, PO Box 555, Trenton, NJ, 08647-0555.
Nonresidents mailing a return without payment due should mail to the State of New Jersey Division of Taxation, Revenue Processing Center, PO Box 244, Trenton, NJ, 08646-0244
How Do I Pay Taxes Due?
Regardless of how you file your New Jersey state income tax return, you may mail a check made payable to "State of New Jersey - TGI" to pay taxes due. You must include your completed tax form or a payment voucher if you are e-filing or sending in your payment separate from your return.
Residents submit voucher Form NJ-1040-V and mail to State of New Jersey, Division of Taxation, Revenue Processing Center, PO Box 111, Trenton, NJ, 08645-0111.
Nonresidents submit voucher Form NJ-1040NR-V and mail to the State of New Jersey, Division of Taxation Revenue, Processing Center, PO Box 244, Trenton, NJ, 08646-0244.
All filers may pay electronically with a debit or credit card or e-check through New Jersey's online system.
Note that first-time paper filers must mail in their payment. Visit the NJ Treasury website for details related to payment.
Where Can I Check My New Jersey Refund Status?
You can check your New Jersey income tax refund status through the NJ Treasury Division website. You'll need to know the exact refund amount, as well as your Social Security number. You may also call 1-800-323-4400 or 609-826-4400 for the automated refund system.
The NJ Treasury recommends e-filers wait four weeks before checking on a refund, and paper filers wait at least 12 weeks.
What About New Jersey State Taxes if You're Self-employed?
Self-employment income is reported on your New Jersey income tax return as Net Profits from Business on line 18 of the NJ-1040 or NJ-1040NR. You may also be required to make estimated tax payments. Check the NJ Tax Guide for Estimated Income Tax Payments for more information.
What About New Jersey State Taxes if You're a Business?
New Jersey's corporate business tax is 6.5 percent for taxable business income up to $50,000, 7.5 percent for up to $100,000 and 9 percent for $100,000 or higher. Until 2023, there is a 2.5 percent surtax on businesses with taxable net income exceeding $1 million.
Rates and dates in this article are correct as of publication. But check for any changes at the NJ Treasury Depart of Taxation before you file.
- Federation of Tax Administrators: State Individual Income Tax Rates
- New Jersey Treasury: Division of Taxation
- NJ Treasury: Income Tax Resource Center
- Tax Foundation: New Jersey Tax Rates and Ranking
- New Jersey Treasury: Division of Taxation: 2021 Income Tax Returns
- NJ Treasury: New Jersey Resident Return booklet
- NJ Treasury: Division of Taxation - Who Must File
- U.S. Department of the Treasury: Monthly Compounding Interest Calculator
Melissa is a writer and editor from Chicago, with a background in small business ownership. After selling her business, she moved into marketing for nonprofits and now manages volunteers at a large medical association. She is a writing and editing contractor and contributed to dozens of blogs and websites.