New Jersey tax notes
- Top rate 10.75% above $1M (3rd highest in the country). PTET available — NJ was an early adopter of PTET (Business Alternative Income Tax / BAIT).
- The highest effective property-tax rate in the US.
Sample tax numbers for New Jersey
Quick orientation — use the full calculator for your actual situation.
Tax moves that matter most for New Jersey
If you have any pass-through business income (S-Corp, partnership, multi-member LLC), New Jersey allows the PTET election that effectively bypasses the federal SALT cap on the state income tax portion. Typical savings for high earners: $2k-$15k/year.
At nearly twice the national average, property tax dominates the SALT cap calculation in New Jersey. Bunching property tax payments (paying 18 months in one calendar year) can sometimes push you above the standard deduction in alternating years.
At net SE income above ~$80k-$100k, electing S-Corp typically saves $5k-$15k/yr in self-employment tax — the math is largely federal but affects New Jersey state tax via PTET (if applicable).
If you have 1099 income, Solo 401(k) lets you contribute up to $72,000/yr (2026) — far more than SEP-IRA in most cases. Reduces both federal and New Jersey state income tax.
Run your New Jersey numbers
Open the full optimizer with New Jersey pre-selected to see your specific tax picture.
Open the full calculator