New Jersey's income tax is discussed.
If you are a resident or nonresident of New Jersey and receive taxable income individually from property owned or business transacted in New Jersey, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you.
The following rates are applicable for 2012:
| Married/Civil Union, Filing Jointly; Heads of Households; and Surviving Spouses/Civil Partners | |
|---|---|
| Taxable Income | Amount of Tax |
| Not over $20,000 | 1.40% minus $0 |
| Over $20,000, but not over $50,000 | 1.75% minus $70 |
| Over $50,000, but not over $70,000 | 2.45% minus $420 |
| Over $70,000, but not over $80,000 | 3.5% minus $1,154.50 |
| Over $80,000, but not over $150,000 | 5.525% minus $2,775 |
| Over $150,000, but not over $500,000 | 6.37% minus $4,042.50 |
| Over | 8.97% minus $17,042.50 |
| Single; Married/Civil Union filing Separately | |
|---|---|
| Taxable Income | Amount of Tax |
| Not over $20,000 | 1.40% minus $0 |
| Over $20,000, but not over $35,000 | 1.75% minus $70 |
| Over $35,000, but not over $40,000 | 3.5% minus $682.50 |
| Over $40,000, but not over $75,000 | 5.525% minus $1,492.50 |
| Over $75,000, but not over $500,000 | 6.37% minus $2,126.25 |
| Over $500,000 | 8.970% minus $15,126.25 |