Self-employment tax in New Jersey
New Jersey taxes self-employed income on a graduated schedule from 1.4% to 10.75% for single filers, with no standard deduction and a $1,000 personal exemption - on top of federal self-employment and income tax. The schedule on this page is the latest published schedule (2025, labeled 2020 and After); no separate 2026 schedule was published.
What a New Jersey freelancer owes
- Federal self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare).
- Federal income tax on your net profit (after the deductible half of SE tax).
- New Jersey income tax on a graduated scale from 1.4% to 10.75% for single filers, with no standard deduction.
Estimate your New Jersey taxes
Free 1099 self-employment tax calculator — add New Jersey's 1.4%-10.75% state rate. No sign-up.
Enter New Jersey's 1.4%-10.75% in the State Tax field for a full estimate.
States with no income tax are set to 0%. Estimate only — adjust for local taxes.
Estimates use 2026 US federal figures (IRS Rev. Proc. 2025-32): self-employment tax of 15.3% (12.4% Social Security up to the $184,500 wage base + 2.9% Medicare) plus federal income tax on your net profit after the standard deduction. State and local taxes are only included if you set a state rate above. Simplified estimate for planning only — not tax advice.
Guide: Self-employment tax in New Jersey — graduated brackets, no standard deduction
New Jersey taxes freelancers on a graduated scale with no standard deduction, so your rate climbs as your income climbs. The schedule below is the latest published schedule, labeled 2020 and After; there is no separate 2026 schedule. For single filers (and married filing separately): 1.4% on the first $20,000; 1.75% from $20,000 to $35,000; 3.5% from $35,000 to $40,000; 5.525% from $40,000 to $75,000; 6.37% from $75,000 to $500,000; 8.97% from $500,000 to $1,000,000; and 10.75% over $1,000,000. Single filers with income of $10,000 or less pay no tax.
The federal layer is the same in every state. Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, and it applies once your net earnings reach $400. The Social Security wage base is $184,500 for 2026; Medicare is uncapped. The deduction for half of your SE tax lowers your income tax only — it does not lower your net earnings or your SE tax.
New Jersey gives no standard deduction, but it does give exemptions: $1,000 for yourself, plus $1,000 for a spouse or civil union partner on a joint return (or a domestic partner), $1,500 per dependent, and another $1,000 if you are 65 or older, blind, or disabled, plus a $6,000 veteran exemption. There is no local income tax. Pass-through owners should also note the elective Pass-Through Business Alternative Income Tax (BAIT): 5.675% on the first $250,000, 6.52% from $250,000 to $1,000,000, 9.12% from $1,000,000 to $5,000,000, and 10.9% over $5,000,000.
Worked example. Take a single freelancer with $60,000 of net profit. After the $1,000 personal exemption, taxable income is $59,000, and the graduated tax is: 1.4% x $20,000 = $280, plus 1.75% x $15,000 = $262.50, plus 3.5% x $5,000 = $175, plus 5.525% x $19,000 = $1,049.75 — a total of $1,767.25. Federal SE tax on the same profit is $60,000 x 92.35% = $55,410, x 15.3% = $8,477.73.
New Jersey estimated payments use Form NJ-1040-ES, paid in four equal installments due April 15, June 15, and September 15, and January 15. Keep every receipt and invoice in MoneyFeed via WhatsApp, so your net profit is ready when each installment comes due.
FAQ
For single filers (and married filing separately): 1.4% on the first $20,000; 1.75% from $20,000 to $35,000; 3.5% from $35,000 to $40,000; 5.525% from $40,000 to $75,000; 6.37% from $75,000 to $500,000; 8.97% from $500,000 to $1,000,000; and 10.75% over $1,000,000. This is the latest published schedule, labeled 2020 and After; there is no separate 2026 schedule. Single filers with income of $10,000 or less pay no tax.
No. New Jersey has no standard deduction. Instead it gives a $1,000 personal exemption for yourself, plus $1,000 for a spouse or civil union partner on a joint return (or a domestic partner), $1,500 per dependent, another $1,000 if you are 65 or older, blind, or disabled, and a $6,000 veteran exemption.
No. New Jersey has no local income tax, so the graduated state schedule is the whole state-and-local picture for freelancers.
The elective Pass-Through Business Alternative Income Tax lets a pass-through entity pay tax at the entity level: 5.675% on the first $250,000, 6.52% from $250,000 to $1,000,000, 9.12% from $1,000,000 to $5,000,000, and 10.9% over $5,000,000. It is an election for the entity, not something a sole proprietor pays by default.
Use the calculator for the federal estimate. Because New Jersey tax is graduated, the State Tax field takes a single rate: enter your marginal bracket rate for a conservative estimate, or work through the brackets as in the example above for an exact figure.
New Jersey freelancer tax — FAQ
Do freelancers pay state income tax in New Jersey?
Yes. New Jersey taxes self-employment income on a graduated scale - 1.4% up to $20,000, 1.75% to $35,000, 3.5% to $40,000, 5.525% to $75,000, 6.37% to $500,000, 8.97% to $1,000,000, and 10.75% above that for single filers - on top of federal taxes. Single filers with income of $10,000 or less pay no tax.
Does New Jersey have a standard deduction?
No. New Jersey has no standard deduction. Single filers get a $1,000 personal exemption, plus $1,500 per dependent and a $6,000 veteran exemption where applicable.
How do I estimate my New Jersey 1099 taxes?
Use the free MoneyFeed 1099 calculator for the federal estimate, then work through the graduated brackets - or enter your effective New Jersey rate in the calculator State Tax field for a rough combined figure.
Figures are 2026 headline guidance for freelancers and the self-employed, not tax advice. Check current IRS and state rules or a CPA for your situation.