Roth conversion taxes in New Jersey (2026)
By Mario Bailey · Published · Last reviewed
New Jersey taxes Roth conversions as ordinary income at graduated rates up to 10.75%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed New Jersey tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $0 | $196 | $196 | 0.4% |
| Single | $80,000 | $56 | $1,491 | $1,435 | 2.9% |
| Single | $150,000 | $2,596 | $5,773 | $3,177 | 6.4% |
| Married filing jointly | $40,000 | $0 | $182 | $182 | 0.4% |
| Married filing jointly | $80,000 | $42 | $879 | $837 | 1.7% |
| Married filing jointly | $150,000 | $1,400 | $4,021 | $2,621 | 5.2% |
Social Security and retirement income
New Jersey does not tax Social Security benefits. A conversion can still raise the federally taxable share of your benefits through the provisional income formula. New Jersey also excludes up to $75,000 of retirement income for filers age 62 and over, which can shelter part of a conversion depending on how the state defines eligible retirement income.
NJ has no standard deduction; personal exemptions of $1,000 per taxpayer are used. The retirement income exclusion (age 62+, N.J.S.A. 54A:6-10) is $75,000 single / $100,000 MFJ / $50,000 MFS for NJ gross income at or below $100,000; it phases out 100% for income above $150,000. This file models the $75,000 single cap for all filing statuses (conservative for MFJ). NJ taxes private pension and IRA income but this exclusion substantially reduces the burden for many retirees. Social Security is fully exempt.
FAQ
Does New Jersey tax Roth conversions?
Yes. New Jersey taxes Roth conversions as ordinary income at graduated rates up to 10.75%. Federal tax applies on top.
Does New Jersey tax Social Security benefits?
No. Social Security benefits are not subject to New Jersey income tax.
What is the top New Jersey rate on a conversion in 2026?
10.75% at the highest marginal rate.
Model your New Jersey conversion in the calculator
Rate data source: New Jersey Division of Taxation, NJ Income Tax Rate Schedules (nj.gov/treasury/taxation/taxtables.shtml); N.J.S.A. 54A:6-10 (retirement income exclusion)