Reference · Tax year 2026
New Jersey and New York Income Tax Rates for 2026
The 2026 income tax rate schedules for New Jersey, New York State and New York City, plus sales tax rates, in one place. Rates apply to taxable income. Each bracket’s rate applies only to the income inside that bracket.
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New Jersey
New Jersey income tax rates.
These schedules have been in effect since 2020 and are unchanged for 2026. New Jersey has no standard deduction and no lower rate for capital gains.
| $0 to $20,000 | 1.4% |
| Over $20,000 to $35,000 | 1.75% |
| Over $35,000 to $40,000 | 3.5% |
| Over $40,000 to $75,000 | 5.525% |
| Over $75,000 to $500,000 | 6.37% |
| Over $500,000 to $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
| $0 to $20,000 | 1.4% |
| Over $20,000 to $50,000 | 1.75% |
| Over $50,000 to $70,000 | 2.45% |
| Over $70,000 to $80,000 | 3.5% |
| Over $80,000 to $150,000 | 5.525% |
| Over $150,000 to $500,000 | 6.37% |
| Over $500,000 to $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
New Jersey notes
What the rate table does not show.
Capital gains
Taxed at the same rates as wages. A large gain in one year can move you into the 8.97% or 10.75% bracket.
Property tax deduction
Homeowners deduct property taxes up to $15,000, or take a $50 refundable credit, whichever helps more. Renters count 18% of rent paid as property taxes.
Pension and retirement exclusion
At 62 or older, with total income of $100,000 or less, a couple filing jointly can exclude up to $100,000 of pensions and IRA withdrawals, and a single filer up to $75,000. A smaller exclusion applies up to $150,000. Above $150,000 there is none.
Social Security
Not taxed by New Jersey at all.
New York State
New York State income tax rates.
| $0 to $17,150 | 3.9% |
| Over $17,150 to $23,600 | 4.4% |
| Over $23,600 to $27,900 | 5.15% |
| Over $27,900 to $161,550 | 5.4% |
| Over $161,550 to $323,200 | 5.9% |
| Over $323,200 to $2,155,350 | 6.85% |
| Over $2,155,350 to $5,000,000 | 9.65% |
| Over $5,000,000 to $25,000,000 | 10.3% |
| Over $25,000,000 | 10.9% |
| $0 to $8,500 | 3.9% |
| Over $8,500 to $11,700 | 4.4% |
| Over $11,700 to $13,900 | 5.15% |
| Over $13,900 to $80,650 | 5.4% |
| Over $80,650 to $215,400 | 5.9% |
| Over $215,400 to $1,077,550 | 6.85% |
| Over $1,077,550 to $5,000,000 | 9.65% |
| Over $5,000,000 to $25,000,000 | 10.3% |
| Over $25,000,000 | 10.9% |
- The 2026 cut. The five lowest rates are each 0.1 point lower than in 2025, when they were 4%, 4.5%, 5.25%, 5.5% and 6%. Another 0.1 point cut is scheduled for 2027. The brackets themselves did not change.
- Higher incomes. Once New York adjusted gross income passes $107,650, New York phases out the benefit of the lower brackets, so higher earners pay closer to their top rate on all of their taxable income.
- Nonresidents. New Jersey residents who work in New York figure the tax on all of their income using these rates, then pay only the New York share. Read our guide for New Jersey residents working in New York.
New York City
New York City resident rates.
New York City tax applies only to city residents, on top of the state tax. New Jersey residents who work in the city do not pay it.
| $0 to $21,600 | 3.078% |
| Over $21,600 to $45,000 | 3.762% |
| Over $45,000 to $90,000 | 3.819% |
| Over $90,000 | 3.876% |
| $0 to $12,000 | 3.078% |
| Over $12,000 to $25,000 | 3.762% |
| Over $25,000 to $50,000 | 3.819% |
| Over $50,000 | 3.876% |
Sales tax
Sales tax in New Jersey and New York.
| New Jersey, statewide | 6.625% |
| New York State rate | 4% |
| Metropolitan Commuter Transportation District, added in New York City and seven nearby counties | 0.375% |
| New York City combined: 4% state, 4.5% city, 0.375% district | 8.875% |
Outside New York City, New York counties and some cities add their own local rate to the 4% state rate, so the combined rate depends on where the sale happens. We file New Jersey and New York sales tax returns for bookkeeping clients.
Rates for tax year 2026 as published by the New Jersey Division of Taxation and the New York State Department of Taxation and Finance, and as enacted in New York’s fiscal year 2026 budget. Confirm with us before relying on them.
Common questions
Questions about the rates.
What is the top New Jersey income tax rate?
10.75%, on taxable income over $1 million. It applies to every filing status.
Did New York cut its income tax rates for 2026?
Yes, slightly. The five lowest rates each dropped by 0.1 percentage point for 2026, to 3.9%, 4.4%, 5.15%, 5.4% and 5.9%. Another 0.1 point cut is scheduled for 2027. The higher rates did not change.
Do New Jersey residents who work in New York City pay New York City tax?
No. New York City income tax applies only to city residents. Nonresidents pay New York State tax on their New York wages.
Does New Jersey tax capital gains at a lower rate?
No. New Jersey taxes capital gains at the same rates as wages, from 1.4% to 10.75%.
What is the sales tax in New Jersey and New York City?
New Jersey's sales tax is 6.625% statewide. In New York City the combined rate is 8.875%: 4% state, 4.5% city and 0.375% for the Metropolitan Commuter Transportation District.
Want to know what these rates mean for you?
A projection puts your own numbers through both states’ rates. The first consultation is free.