New Jersey has a progressive income tax with rates from 1.4% to 10.75%, and it treats business income under its own rules rather than simply copying your federal return. Here is what New Jersey freelancers owe and when.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit |
| Federal income tax | 10%–37% |
| New Jersey Gross Income Tax | 1.4%–10.75% |
2026 New Jersey rates (single and married filing separately)
| Taxable income | Rate |
|---|---|
| $0 – $20,000 | 1.4% |
| $20,000 – $35,000 | 1.75% |
| $35,000 – $40,000 | 3.5% |
| $40,000 – $75,000 | 5.525% |
| $75,000 – $500,000 | 6.37% |
| $500,000 – $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
Married couples filing jointly and heads of household use a separate schedule with wider brackets (for example, 6.37% begins at $150,000 for joint filers).
How New Jersey treats business income
- Freelance profit is reported as net profits from business on the New Jersey return, figured under New Jersey rules, which mostly follow federal Schedule C.
- New Jersey has no standard deduction and no QBI deduction; it offers personal exemptions instead.
- Some federal adjustments, such as the deduction for half of self-employment tax, are not allowed in the same way, so New Jersey taxable income is often higher than you’d expect from your federal return.
Estimated payments
You must make New Jersey estimated payments (Form NJ-1040-ES) if you expect to owe more than $400 in New Jersey tax. Due dates match the IRS: April 15, June 15 and September 15, 2026, and January 15, 2027. Payments can be made online by e-check or card. Size your federal payments with the quarterly estimated tax calculator.
Working in New York while living in New Jersey
If you live in New Jersey but earn income from work performed in New York, you may owe New York tax on that income as a non-resident and then claim a credit on your New Jersey return for tax paid to New York. Cross-border freelancers should keep track of where they actually do the work. See the New York guide.
How much to set aside
Most New Jersey freelancers with moderate incomes land in the 5.525% or 6.37% bracket. Enter that rate in the state field of the tax set-aside calculator as a conservative estimate.