Back
to top

Information on
Novel Coronavirus

Coronavirus is still active in NJ. Wear a mask. Keep a 6ft. distance in public

NJ Poison Control Center and 211 provide COVID-19 information: Call: 2-1-1; Call (24/7); 1-800-962-1253; Text: NJCOVID to 898-211; More Information: covid19.nj.gov
COVID19 Alert NJDownload COVID Alert NJ app for free today.
Visit covid19.nj.gov/app

Division of Taxation

COVID-19 Related Tax Information
Information about the Federal Economic Impact Payment – Stimulus Check
Important Information About Retail COVID-19 Fees and Sales Tax

2020 Income Tax Rate and Withholding Instruction for Income Between $1 Million and $5 Million

New legislation enacted September 29, 2020, made several changes to the New Jersey Gross Income Tax Act as part of New Jersey's Fiscal Year 2021 budget. The new law increases the Gross Income Tax rate for income between $1 million and $5 million and provides a new withholding rate for the remainder of 2020.

Effective January 1, 2020, the tax rate on that income bracket increases from 8.97% to 10.75%, regardless of filing status. Income over $5 million is already subject to this rate.

Effective immediately, employers must withhold Income Tax at the rate of 21.3% from salaries, wages and other remuneration in excess of $1 million, but not in excess of $5 million, during the taxable year. This higher withholding rate allows taxpayers affected by the rate increase to "catch up" on their withholdings for the year since the new tax rate is retroactive to January 1.

The Division of Taxation will not impose interest or penalties for insufficient payment of estimated tax and/or withholdings that may be due before November 1, 2020, if the underpayment is a result of the new tax rate.

New Jersey Withholding Rate Tables


Last Updated: Thursday, 10/08/20