N.J. Stat. tit. 54A, ch. 2

in effect

N.J. Stat. § 54A:2-1 Imposition of tax.

54A:2-1. Imposition of tax. There is hereby imposed a tax for each taxable year (which shall be the same as the taxable year for federal income tax purposes) on the New Jersey gross income as herein defined of every individual, estate or trust (other than a charitable trust or a trust forming part of a pension or profit-sharing plan), subject to the deductions, limitations and modifications hereinafter provided, determined in accordance with the following tables with respect to taxpayers' taxable income: a. For married individuals filing a joint return and individuals filing as head of household or as surviving spouse for federal income tax purposes: (1) for taxable years beginning on or after January 1, 1991 but before January 1, 1994: If the taxable income is: The tax is: Not over $20,000.00.......... 2% of taxable income Over $20,000.00 but not over $50,000.00........ $400.00 plus 2.5% of the excess over $20,000.00 Over $50,000.00 but not over $70,000.00........ $1,150.00 plus 3.5% of the excess over $50,000.00 Over $70,000.00 but not over $80,000.00........ $1,850.00 plus 5.0% of the excess over $70,000.00 Over $80,000.00 but not over $150,000.00...... $2,350.00 plus 6.5% of the excess over $80,000.00 Over $150,000.00 ............ $6,900.00 plus 7.0% of the excess over $150,000.00 (2) For taxable years beginning on or after January 1, 1994 but before January 1, 1995: If the taxable income is: The tax is: Not over $20,000.00...... 1.900% of taxable income Over $20,000.00 but not over $50,000.00....... $380.00 plus 2.375% of the excess over $20,000.00 Over $50,000.00 but not over $70,000.00...... $1,092.50 plus 3.325% of the excess over $50,000.00 Over $70,000.00 but not over $80,000.00....... $1,757.50 plus 4.750% of the excess over $70,000.00 Over $80,000.00 but not over $150,000.00....... $2,232.50 plus 6.175% of the excess over $80,000.00 Over $150,000.00 .......... $6,555.00 plus 6.650% of the excess over $150,000.00 (3) for taxable years beginning on or after January 1, 1995 but before January 1, 1996: If the taxable income is: The tax is: Not over $20,000.00.......... 1.700% of taxable income Over $20,000.00 but not over $50,000.00........ $340.00 plus 2.125% of the excess over $20,000.00 Over $50,000.00 but not over $70,000.00........ $977.50 plus 2.975% of the excess over $50,000.00 Over $70,000.00 but not over $80,000.00........ $1,572.50 plus 4.250% of the excess over $70,000.00 Over $80,000.00 but not over $150,000.00...... $1,997.50 plus 6.013% of the excess over $80,000.00 Over $150,000.00 ............ $6,206.60 plus 6.580% of the excess over $150,000.00 (4) for taxable years beginning on or after January 1, 1996 but before January 1, 2004: If the taxable income is: The tax is: Not over $20,000.00............ 1.400% of taxable income Over $20,000.00 but not over $50,000.00......... $280.00 plus 1.750% of the excess over $20,000.00 Over $50,000.00 but not over $70,000.00........ $805.00 plus 2.450% of the excess over $50,000.00 Over $70,000.00 but not over $80,000.00........ $1,295.50 plus 3.500% of the excess over $70,000.00 Over $80,000.00 but not over $150,000.00...... $1,645.00 plus 5.525% of the excess over $80,000.00 Over $150,000.00 ............... $5,512.50 plus 6.370% of the excess over $150,000.00 (5) for taxable years beginning on or after January 1, 2004 but before January 1, 2018: If the taxable income is: The tax is: Not over $20,000.00.......... 1.400% of taxable income Over $20,000.00 but not over $50,000.00........ $280.00 plus 1.750% of the excess over $20,000.00 Over $50,000.00 but not over $70,000.00........ $805.00 plus 2.450% of the excess over $50,000.00 Over $70,000.00 but not over $80,000.00....... $1,295.50 plus 3.500% of the excess over $70,000.00 Over $80,000.00 but not over $150,000.00...... $1,645.00 plus 5.525% of the excess over $80,000.00 Over $150,000.00 but not over $500,000.00...... $5,512.50 plus 6.370% of the excess over $150,000.00 Over $500,000.00 ............ $27,807.50 plus 8.970% of the excess over $500,000.00 (6) for taxable years beginning on or after January 1, 2018, but before January 1, 2020: If the taxable income is: The tax is: Not over $20,000.00.......... 1.400% of taxable income Over $20,000.00 but not over $50,000.00...... $280.00 plus 1.750% of the excess over $20,000.00 Over $50,000.00 but not over $70,000.00....... $805.00 plus 2.450% of the excess over $50,000.00 Over $70,000.00 but not over $80,000.00....... $1,295.50 plus 3.500% of the excess over $70,000.00 Over $80,000.00 but not over $150,000.00..... $1,645.00 plus 5.525% of the excess over $80,000.00 Over $150,000.00 but not over $500,000.00..... $5,512.50 plus 6.370% of the excess over $150,000.00 Over $500,000.00 but not over $5,000,000.00.. $27,807.50 plus 8.970% of the excess over $500,000.00 Over $5,000,000.00 .......... $431,457.50 plus 10.75% of the excess over $5,000,000.00 (7) for taxable years beginning on or after January 1, 2020: If the taxable income is: The tax is: Not over $20,000.00........ 1.400% of taxable income Over $20,000.00 but not over $50,000.00.... $280.00 plus 1.750% of the excess over $20,000.00 Over $50,000.00 but not over $70,000.00.... $805.00 plus 2.450% of the excess over $50,000.00 Over $70,000.00 but not over $80,000.00... $1,295.50 plus 3.500% of the excess over $70,000.00 Over $80,000.00 but not over $150,000.00.. $1,645.00 plus 5.525% of the excess over $80,000.00 Over $150,000.00 but not over $500,000.00.. $5,512.50 plus 6.370% of the excess over $150,000.00 Over $500,000.00 but not over $1,000,000.00.. $27,807.50 plus 8.970% of the excess over $500,000.00 Over $1,000,000.00... $72,657.50 plus 10.750% of the excess over $1,000,000.00 b. For married individuals filing separately, unmarried individuals other than individuals filing as head of household or as a surviving spouse for federal income tax purposes, and estates and trusts: (1) for taxable years beginning on or after January 1, 1991 but before January 1, 1994: If the taxable income is: The tax is: Not over $20,000.00.......... 2% of taxable income Over $20,000.00 but not over $35,000.00....... $400.00 plus 2.5% of the excess over $20,000.00 Over $35,000.00 but not over $40,000.00....... $775.00 plus 5.0% of the excess over $35,000.00 Over $40,000.00 but not over $75,000.00....... $1,025.00 plus 6.5% of the excess over $40,000.00 Over $75,000.00 ........... $3,300.00 plus 7.0% of the excess over $75,000.00 (2) for taxable years beginning on or after January 1, 1994 but before January 1, 1995: If the taxable income is: The tax is: Not over $20,000.00.......... 1.900% of taxable income Over $20,000.00 but not over $35,000.00........ $380.00 plus 2.375% of the excess over $20,000.00 Over $35,000.00 but not over $40,000.00........ $736.25 plus 4.750% of the excess over $35,000.00 Over $40,000.00 but not over $75,000.00........ $973.75 plus 6.175% of the excess over $40,000.00 Over $75,000.00 .......... $3,135.00 plus 6.650% of the excess over $75,000.00 (3) for taxable years beginning on or after January 1, 1995 but before January 1, 1996: If the taxable income is: The tax is: Not over $20,000.00.......... 1.700% of taxable income Over $20,000.00 but not over $35,000.00....... $340.00 plus 2.125% of the excess over $20,000.00 Over $35,000.00 but not over $40,000.00.......... $658.75 plus 4.250% of the excess over $35,000.00 Over $40,000.00 but not over $75,000.00....... $871.25 plus 6.013% of the excess over $40,000.00 Over $75,000.00 .......... $2,975.80 plus 6.580% of the excess over $75,000.00 (4) for taxable years beginning on or after January 1, 1996 but before January 1, 2004: If the taxable income is: The tax is: Not over $20,000.00.......... 1.400% of taxable income Over $20,000.00 but not over $35,000.00........ $280.00 plus 1.750% of the excess over $20,000.00 Over $35,000.00 but not over $40,000.00........ $542.50 plus 3.500% of the excess over $35,000.00 Over $40,000.00 but not over $75,000.00........ $717.50 plus 5.525% of the excess over $40,000.00 Over $75,000.00............ $2,651.25 plus 6.370% of the excess over $75,000.00 (5) for taxable years beginning on or after January 1, 2004 but before January 1, 2018: If the taxable income is: The tax is: Not over $20,000.00.......... 1.400% of taxable income Over $20,000.00 but not over $35,000.00........ $280.00 plus 1.750% of the excess over $20,000.00 Over $35,000.00 but not over $40,000.00........ $542.50 plus 3.500% of the excess over $35,000.00 Over $40,000.00 but not over $75,000.00....... $717.50 plus 5.525% of the excess over $40,000.00 Over $75,000.00 but not over $500,000.00...... $2,651.25 plus 6.370% of the excess over $75,000.00 Over $500,000.00 ............ $29,723.75 plus 8.970% of the excess over $500,000.00 (6) for taxable years beginning on or after January 1, 2018, but before January 1, 2020: If the taxable income is: The tax is: Not over $20,000.00.......... 1.400% of taxable income Over $20,000.00 but not over $35,000.00........ $280.00 plus 1.750% of the excess over $20,000.00 Over $35,000.00 but not over $40,000.00........ $542.50 plus 3.500% of the excess over $35,000.00 Over $40,000.00 but not over $75,000.00........ $717.50 plus 5.525% of the excess over $40,000.00 Over $75,000.00 but not over $500,000.00...... $2,651.25 plus 6.370% of the excess over $75,000.00 Over $500,000.00 but not over $5,000,000.00... $29,723.75 plus 8.970% of the excess over $500,000.00 Over $5,000,000.00 .......... $433,373.75 plus 10.75% of the excess over $5,000,000.00 (7) for taxable years beginning on or after January 1, 2020: If the taxable income is: The tax is: Not over $20,000.00...... 1.400% of taxable income Over $20,000.00 but not over $35,000.00....... $280.00 plus 1.750% of the excess over $20,000.00 Over $35,000.00 but not over $40,000.00...... $542.50 plus 3.500% of the excess over $35,000.00 Over $40,000.00 but not over $75,000.00...... $717.50 plus 5.525% of the excess over $40,000.00 Over $75,000.00 but not over $500,000.00... $2,651.25 plus 6.370% of the excess over $75,000.00 Over $500,000.00 but not over $1,000,000.00.. $29,723.75 plus 8.970% of the excess over $500,000.00 Over $1,000,000.00.... $74,573.75 plus 10.750% of the excess over $1,000,000.00 c. For the purposes of this section, an individual who would be eligible to file as a head of household for federal income tax purposes but for the fact that such taxpayer is a nonresident alien, shall determine tax pursuant to subsection a. of this section. d. For the purposes of this section, for taxable year 2018, withholding by every employer from salaries, wages and other remuneration paid by an employer for services rendered described in subsections a. and b. of this section, in excess of $5,000,000 during that taxable year, shall be at the rate of 15.6% as soon as practicable but no later than September 1, 2018. The Director of the Division of Taxation is authorized to do all things necessary to implement the withholding tax prescribed by this section for taxable year 2018. e. No additions to tax or penalty shall be imposed under N.J.S.54A:9-6 for insufficient payment of estimated tax that may otherwise be due on salaries, wages and other remuneration received before September 1, 2018, on which there is a rate of tax imposed pursuant to subsections a. and b. of this section. f. An employer maintaining an office or transacting business within this State and making payment of any salaries, wages and remuneration subject to New Jersey gross income tax or making payment of any remuneration for employment subject to contribution under the New Jersey "unemployment compensation law," pursuant to R.S.43:21-1 et seq., that is subject to New Jersey gross income tax shall not be subject to interest, penalties or other costs that may otherwise be imposed for insufficient withholding of salaries, wages and other remuneration made before September 1, 2018, that is directly attributable to the enactment of the taxable income tables and tax rates in subsections a. and b. of this section. amended 1982, c.229, s.1; 1990, c.61, s.12; 1994, c.2, s.1; 1994, c.69; 1995, c.165; 2004, c.40, s.17; 2018, c.45, s.10; 2020, c.94, s.1.

N.J. Stat. § 54A:2-1a Determination of tax due, certain circumstances.

1. a. Notwithstanding the taxable income tables and tax rates provided in N.J.S.54A:2-1 or any other provision of law to the contrary, for taxable years beginning on or after January 1, 2009 but before January 1, 2010, the amount of tax due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxpayer whose taxable income exceeds $400,000 shall be determined pursuant to subsections b. and c. of this section as is applicable. b. For married individuals filing a joint return and individuals filing as head of household or as surviving spouse for federal income tax purposes: If the taxable income is: The tax is: Over $400,000.00 but not over $500,000.00 . . . . . . . $21,437.50 plus 8.0% of the excess over $400,000.00 Over $500,000.00 but not over $1,000,000.00 . . . . . . $29,437.50 plus 10.25% of the excess over $500,000.00 Over $1,000,000.00 . . . . . . . $80,687.50 plus 10.75% of the excess over $1,000,000.00 c. For married individuals filing separately, unmarried individuals other than individuals filing as head of household or as a surviving spouse for federal income tax purposes, and estates and trusts: If the taxable income is: The tax is: Over $400,000.00 but not over $500,000.00 . . . . . . . $23,353.75 plus 8.0% of the excess over $400,000.00 Over $500,000.00 but not over $1,000,000.00 . . . . . . $31,353.75 plus 10.25% of the excess over $1,000,000.00 Over $1,000,000.00 . . . . . . . $82,603.75 plus 10.75% of the excess over $1,000,000.00 d. No additions to tax or penalty shall be imposed under N.J.S.54A:9-6 for insufficient payment of estimated tax that may otherwise be due on salaries, wages and other remuneration received before October 1, 2009 upon which there is a rate of tax imposed pursuant to subsections b. and c. of this section. e. An employer maintaining an office or transacting business within this State and making payment of any salaries, wages and remuneration subject to New Jersey gross income tax or making payment of any remuneration for employment subject to contribution under the New Jersey "unemployment compensation law," pursuant to R.S.43:21-1 et seq., that is subject to New Jersey gross income tax shall not be subject to interest, penalties or other costs that may otherwise be imposed for insufficient withholding of salaries, wages and other remuneration made before October 1, 2009 that is directly attributable to the enactment of the taxable income tables and tax rates in subsections b. and c. of this section. L.2009, c.69, s.1.

N.J. Stat. § 54A:2-1.1 Determination of tax, income of nonresident

4. a. For a taxable year to which a certification pursuant to section 3 of P.L.1993, c.320 (C.54A:2-1.2) does not apply, notwithstanding the provisions of N.J.S.54A:2-1, the tax due for each taxable year from a nonresident taxpayer shall be equal to the tax computed pursuant to N.J.S.54A:2-1 as if such nonresident were a resident, multiplied by a fraction, the numerator of which is the taxpayer's income from sources within this State determined in accordance with the provisions of N.J.S.54A:5-7 and N.J.S.54A:5-8 and the denominator of which is that taxpayer's gross income for the taxable year as if such taxpayer were a resident. b. For a taxable year to which a certification pursuant to section 3 of P.L.1993, c.320 (C.54A:2-1.2) applies, the income of a nonresident individual shall be that part of the individual's income derived from sources within this State as defined in N.J.S.54A:1-1 et seq., except that income of a nonresident individual shall not include income derived from sources within this State from pensions and annuities as set forth in subsection j. of N.J.S.54A:5-1. L.1993,c.178,s.4; amended 1993,c.320,s.2.

N.J. Stat. § 54A:2-1.2 Review of New York enactments by Attorney General

3. The Attorney General shall review the enactments of the State of New York to determine if the method of taxation of the income from New York sources of taxpayers that are not residents of New York, enacted pursuant to 1987 N.Y. Laws 28, compiled as subsection (e) of N.Y. Tax 601, and requiring that every New York nonresident taxpayer compute a tax as if such resident were a resident and multiply that liability by a fraction the numerator of which is the taxpayer's New York source income as therein determined and the denominator of which is the taxpayer's federal adjusted gross income for the taxable year, has been repealed or superceded by subsequent enactment so as to restrict the computation of liability owed to New York to a method based only on the New York source income of the taxpayer. If the Attorney General shall so determine, the Attorney General shall, not later than five days after such enactment, certify to the Director of the Division of Taxation the taxable years for which the fractional method of liability calculation for nonresident taxpayers has been repealed or superceded. L.1993,c.320,s.3.

N.J. Stat. § 54A:2-2 Partners and partnerships

54A:2-2. a. A partnership as such shall not be subject to the New Jersey Gross Income Tax. Individuals carrying on business as partners shall be liable for the New Jersey Gross Income Tax only in their separate or individual capacities, except as provided under section b. of this section. b. A partnership shall report any federal partnership audit adjustments made by the Internal Revenue Service pursuant section 6225(a)(1) of the Internal Revenue Code (26 U.S.C. s.6225(a)(1)) to the Division of Taxation in the Department of the Treasury in accordance with subsection d. of section 8 of P.L.2022,c.133 (C.54:50-47). The partners of the reviewed year shall make payment of any New Jersey Gross Income Tax liability that results from the federal partnership audit adjustments reported on the Federal Adjustments Report, unless the partnership makes the election to pay tax on the partner's behalf. Failure of the partnership, partner, tiered partner, indirect partner, or member to report or pay federal adjustments pursuant to section 6225(a) and section 6225(c) of the Internal Revenue Code shall not prevent the director from assessing the partnership, partner, tiered partner, indirect partner, or member for taxes they owe, using the best information available, in the event that the partnership, partner, tiered partner, indirect partner, or member fails to timely make any report or payment required by this section for any reason. c. The director may adopt rules and regulations that the director deems necessary to effectuate the provisions of this section. L.1976, c. 47, s. 54A:2-2, eff. July 8, 1976, operative Aug. 30, 1976; amended 2022, c.133, s.1.

N.J. Stat. § 54A:2-3 Associations taxable as corporations

An association, trust, or other unincorporated organization which is taxable as a corporation for Federal income tax purposes shall not be subject to tax under this act. L.1976, c. 47, s. 54A:2-3, eff. July 8, 1976, operative Aug. 30, 1976.

N.J. Stat. § 54A:2-4 Minimum taxable income

54A:2-4. Minimum taxable income. Notwithstanding any other provisions of this act, a taxpayer shall not be subject to tax under this act if: a. The taxpayer is filing as an unmarried individual, an estate or trust, with a gross income of (1) $3,000 or less for taxable years beginning before January 1, 1994, (2) $7,500 or less for taxable years beginning on or after January 1, 1994 but before January 1, 1999, and (3) $10,000 or less for taxable years beginning on or after January 1, 1999; b. The taxpayer is determining tax pursuant to subsection a. of N.J.S.54A:2-1, or is a married couple filing a joint return, with a gross income of (1) $3,000 or less for taxable years beginning before January 1, 1994, (2) $7,500 or less for taxable years beginning on or after January 1, 1994 but before January 1, 1999, (3) $10,000 or less for taxable years beginning on or after January 1, 1999 but before January 1, 2000, (4) $15,000 or less for taxable years beginning on or after January 1, 2000 but before January 1, 2001, and (5) $20,000 or less for taxable years beginning on or after January 1, 2001; or c. The taxpayer is a married person filing separately with a gross income of (1) $1,500 or less for taxable years beginning before January 1, 1994, (2) $3,750 or less for taxable years beginning on or after January 1, 1994 but before January 1, 1999, (3) $5,000 or less for taxable years beginning on or after January 1, 1999 but before January 1, 2000, (4) $7,500 or less for taxable years beginning on or after January 1, 2000 but before January 1, 2001, and (5) $10,000 or less for taxable years beginning on or after January 1, 2001. In the case of a nonresident, gross income shall mean gross income which such nonresident would have reported if he had been a resident. L.1976, c.47, s. 54A:2-4; amended 1990, c.61, s.14; 1994, c.8, s.1; 1999, c.260, s.1.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026