New Jersey self-employment tax at a glance
New Jersey's Gross Income Tax has low entry rates but climbs to 10.75% above $1 million. New Jersey does not allow a deduction for half of self-employment tax and has its own rules for business income, so the state taxable figure may differ from your federal AGI.
- State income tax: a progressive income tax from 1.4% to 10.75% (top marginal rate 10.75%)
- Standard deduction / exemption: $1,000 single, $2,000 married filing jointly
- Estimated payments: Form NJ-1040-ES
- Tax agency: Division of Taxation
- Local income taxes: None for most residents
How New Jersey compares: take-home pay on 1099 income
The table compares a single filer with no business expenses in New Jersey with the average state income tax across the15 states we cover and with a state that has no income tax. Every column includes self-employment tax and federal income tax.
| Net profit | New Jersey state tax | Avg. state tax | Total tax | New Jersey take-home | No-income-tax state |
|---|---|---|---|---|---|
| $50,000 | $1,020 | $1,158 | $10,752 (21.5%) | $39,248 | $40,268 |
| $75,000 | $2,303 | $2,012 | $17,798 (23.7%) | $57,202 | $59,505 |
| $100,000 | $3,730 | $2,912 | $26,095 (26.1%) | $73,905 | $77,635 |
| $150,000 | $6,690 | $4,749 | $44,298 (29.5%) | $105,702 | $112,392 |
| $250,000 | $12,793 | $8,541 | $79,747 (31.9%) | $170,253 | $183,046 |
2026 New Jersey income tax brackets
| Single rate | Single taxable income | Married rate | Married filing jointly |
|---|---|---|---|
| 1.4% | $0 – $20,000 | 1.4% | $0 – $20,000 |
| 1.75% | $20,000 – $35,000 | 1.75% | $20,000 – $50,000 |
| 3.5% | $35,000 – $40,000 | 2.45% | $50,000 – $70,000 |
| 5.525% | $40,000 – $75,000 | 3.5% | $70,000 – $80,000 |
| 6.37% | $75,000 – $500,000 | 5.525% | $80,000 – $150,000 |
| 8.97% | $500,000 – $1,000,000 | 6.37% | $150,000 – $500,000 |
| 10.75% | Over $1,000,000 | 8.97% | $500,000 – $1,000,000 |
| — | 10.75% | Over $1,000,000 |
How this calculator works
- Net profit is your gross 1099 income minus deductible business expenses.
- Self-employment tax is 15.3% (12.4% Social Security up to the $184,500 wage base, plus 2.9% Medicare) on 92.35% of net profit.
- Federal income tax applies the 2026 brackets after subtracting half of your SE tax, the standard deduction and the 20% qualified business income (QBI) deduction.
- New Jersey tax applies New Jersey's brackets to your adjusted gross income after the state deduction or exemption.
- Quarterly payments divide the annual federal amount evenly.
Not included: credits, itemized deductions, retirement contributions (SEP-IRA, Solo 401(k)), self-employed health insurance deduction and local taxes. Each of these usually lowers the bill, so treat the result as a conservative upper estimate.