NJ Income Tax – Tax Rates
Gross Income Tax
Beginning January 1, 2019, the withholding rate on income over five million dollars is 11.8 percent.
Tax Table (2018 and After Returns)
Tax Table (2017 and Prior Returns)
If your New Jersey taxable income is less than $100,000, you can use the New Jersey Tax Table or New Jersey Rate Schedules. When using the tax table, use the correct column.
You must use the New Jersey Tax Rate Schedules if your New Jersey taxable income is $100,000 or more. Use the correct schedule for your filing status.
Tax Rate for Nonresident Composite Return (Form NJ-1080C)
A composite return is a group filing. Technically, it is an individual return that each nonresident income earner must file, except that it is a composite filing of all the individual returns on one form.
New Jersey has a graduated Income Tax rate, which means it imposes a higher tax rate the higher the income. Since a composite return is a combination of various individuals, various rates cannot be assessed. Therefore, the composite return, Form NJ-1080C
, uses the highest tax bracket of 10.75%. (See N.J.A.C.
Note: For tax year 2017, the highest tax rate was 8.97%.
Participation in a composite return is elective. If the nonresident individual is going to be taxed at a higher rate than their financial circumstances would require if they filed individually, the individual can file a nonresident return (Form NJ-1040NR
For more information
, see the instructions for the New Jersey Composite Return (Form NJ-1080C) or the New Jersey Nonresident Return (Form NJ-1040NR).