Does New Jersey tax pensions and retirement income?
Taxed, with a retirement exclusion
Partly. If you are 62 or older (or disabled) and your total income is $100,000 or less, New Jersey lets you exclude taxable pension, annuity and IRA withdrawals up to $100,000 (joint), $75,000 (single) or $50,000 (married filing separately). The exclusion shrinks between $100,001 and $150,000 and ends above $150,000.
In the state's own words
Copied word for word from the official document linked below each quote:
“If your total income is $100,000 or less, you can exclude reported taxable pension, annuity, and IRA withdrawals up to the maximum amount for your filing status listed below.”
“The current income limit for a Retirement Income Exclusion is $150,000.”
And Social Security?
No. New Jersey lists Social Security as income that is not subject to its tax. The New Jersey Social Security page quotes the rule.
Federal tax still applies
Whatever New Jersey does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the New Jersey Division of Taxation before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Retirement Income ExclusionsNew Jersey Division of Taxation. Read on November 12, 2026.