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Retirement income in New Jersey

Varies

Does New Jersey Tax Retirement Income?

Short answer: Partly. Taxpayers 62+ (or disabled) with total income of $100,000 or less may exclude pensions, annuities, and IRA withdrawals up to $100,000 joint / $75,000 single / $50,000 married filing separately. A reduced percentage applies at $100,001–$150,000, with no exclusion above $150,000.

Government pensions: Government pensions are taxed the same way and are eligible for the same exclusion. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.

Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.