NEW JERSEY RETIREMENT INCOME TAX · TAX YEAR 2026
Does New Jersey tax Social Security and retirement income?
New Jersey does not tax Social Security benefits. From age 62, New Jersey excludes up to $75,000 of pension and IRA income ($100,000 on a joint return) when total income is $100,000 or less, a smaller share up to $150,000 and nothing above that. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays no New Jersey income tax for 2026.
Your estimate
- New Jersey income tax
- $0.00
- Federal income tax
- $1,810.00
- Total income tax
- $1,810.00
Subtracted from New Jersey income
- Social Security (not New Jersey income)
- $11,300.00
- Pension exclusion
- $30,000.00
- Age 65 exemption
- $1,000.00
The $3,000/$6,000 special exclusion for those never eligible for Social Security is not modeled.
New Jersey tax at different retirement incomes
New Jersey income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $0 | $0 |
| $60,000 | $0 | $0 |
| $100,000 | $333 | $0 |
| $150,000 | $5,510 | $3,220 |
Does New Jersey tax Social Security?
No. Social Security and Railroad Retirement benefits are not taxable in New Jersey.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and New Jersey taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and New Jersey taxes none of it.
Does New Jersey tax pensions?
Partly. Pensions and annuities are taxable, including New Jersey and federal government pensions, but military pensions are not. From 62, the pension exclusion covers up to $75,000 for single filers and heads of household, $100,000 on a joint return and $50,000 for married couples filing separately, when New Jersey income is $100,000 or less. Up to $125,000 of income the exclusion is 37.5% of pension and IRA income for single filers (50% joint, 25% separate), up to $150,000 it is 18.75% (25% joint, 12.5% separate), and above $150,000 there is none. On a joint return, only the income of a spouse 62 or older counts.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension New Jersey exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $20,000 | $0 |
| New Jersey government | $20,000 | $0 |
| Federal civil service | $20,000 | $0 |
| Military | $20,000 | $0 |
Does New Jersey tax IRA and 401(k) withdrawals?
Partly. IRA and 401(k) withdrawals are taxable and share the pension exclusion from 62. Qualified Roth IRA withdrawals are not taxed. Any exclusion left over can be used against other income, such as interest, by retirees with little or no wage or business income.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no New Jersey income tax for 2026.
At what age do retirement tax breaks start in New Jersey?
At 62, for the pension exclusion. At 65, each person also gets an extra $1,000 exemption.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 61 | $438 | $770 |
| 62Pension exclusion | $0 | $0 |
| 65Age 65 exemption | $0 | $0 |
What the calculator leaves out
The $3,000/$6,000 special exclusion for those never eligible for Social Security is not modeled.
- Other income entered counts toward the other retirement income exclusion only from age 62 and with no wages, as on Worksheet D.
- The $10,000/$20,000 no-tax test inside the New Jersey formula sees income after the $1,000 age 65 exemptions.
The calculator uses New Jersey rules from the 2025 forms and instructions, the latest published.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.