NJ · Tax Year 2026
How New Jersey taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
Up to $75,000 single/$100,000 joint qualifying pension/account exclusion at income $100,000 or less
Age 62+ or qualifying disability
Additional Notes
Reduced relief through $150,000; maximum exclusion not available throughout entire range
Does New Jersey tax Social Security benefits?
No. New Jersey does not tax Social Security retirement benefits.
Does New Jersey tax pension income?
Partially. New Jersey provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does New Jersey tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in New Jersey. However, exclusions or credits may apply depending on your age and income — review the details above.
Is New Jersey a tax-friendly state for retirees?
It depends on your income mix. New Jersey offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official New Jersey state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
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Data reflects tax year 2026 rules sourced from official New Jersey state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.