New Jersey Retirement Income Tax Calculator

Retirement income tax calculation for New Jersey. Social Security is taxable at the federal level if combined income exceeds $25,000 (single) or $32,000 (married) — up to 85% may be taxed. This calculator excludes Social Security benefits from the STATE-taxable base entirely (many states exempt Social Security regardless of their general income tax treatment; this is a simplifying assumption, not a state-by-state verified exclusion list). Pension and 401(k)/IRA income is state-taxable only after New Jersey's retirement exclusion below. New Jersey's pension exclusion (2025 Form NJ-1040 instructions, Line 28a) applies to filers aged 62 or older with total income of $150,000 or less: pension, annuity and IRA income is excluded up to $100,000 joint or $75,000 single at incomes up to $100,000, up to 50% / 37.5% of it from $100,001 to $125,000, and up to 25% / 18.75% from $125,001 to $150,000. Worksheet D lets the unused part of the maximum cover other income when earned income is $3,000 or less; the calculator treats its other-income box as interest and dividends, not wages. New Jersey's brackets then run on the remainder; its personal exemptions are not subtracted. Because those deductions are left out, the New Jersey figure is an upper bound after the retirement exclusion; every filer is assumed to be 65 or older. Federal tax uses the final 2026 brackets and standard deduction from IRS Revenue Procedure 2025-32, plus the section 63(f) additional standard deduction for age 65+ — $2,050 for a single filer and $1,650 per qualifying spouse (so $3,300 when both spouses are 65+ on a joint return). It does NOT apply the separate enhanced deduction for seniors under 26 U.S.C. §151(d)(5)(C) ($6,000 per qualified individual age 65+, claimed on Schedule 1-A Part V and phased out by 6% of MAGI over $75,000 single / $150,000 joint, available for tax years beginning before January 1, 2029). If you and your spouse are both 65+ and under that phase-out, the unmodelled deduction is worth up to $12,000 of additional federal deductions, so the federal tax shown here is deliberately CONSERVATIVE (too high) rather than optimistic — use the dedicated senior deduction calculator to model it.