New Jersey's Income Tax is "pay-as-you-go," where you are required to pay tax on your income as you receive it. If you are a wage earner, tax is usually withheld by your employer through your paycheck. However, if you do not have withholdings (or enough withholdings) taken out of a paycheck, you may have to make estimated payments.
If you estimate that you will owe more than $400 in New Jersey Income Tax at the end of the year you are required to make estimated payments.
New: 2020 Tax Rate Increase for income between $1 million and $5 million. You will need to take into account the new rate when calculating your January 2021 payment. If your employer did not withhold enough taxes and you are required to make estimated payments, you must make one on or before January 15, 2021.
Failure to make required estimated payments could result in additional interest when you file your New Jersey Income Tax return.
It is important to understand that estimated payments go toward your end of the year tax debt. They are not a payment plan to pay off taxes you owe.
Estimated payments are divided into four equal payments. They are made quarterly, with specific payment due dates. If a due date falls on a weekend or legal holiday, that payment is due the following business day.
|Payment Period||Due Date|
|Quarter 1||April 15|
|Quarter 2||June 15|
|Quarter 3||September 15|
|Quarter 4||January 15 (of the following year)|
Note: Farmers and fiscal year filers, see the instructions for Form NJ-1040-ES for information on due dates.
Due to Covid-19, Tax Year 2020 due dates were changed to June 15, 2020, July 15, 2020, September 16, 2020, and January 15, 2021.
You can make an estimated payment online or by mail. If you are mailing a payment you must file a Declaration of Estimated Tax Voucher (Form NJ-1040-ES ) along with your check or money order. Make your check or money order payable to State of New Jersey – TGI.
The Social Security number you enter first should be the same one you enter first on your New Jersey Income Tax return.
If you are selling a property and moving out –of –State, you are now considered a non-resident for New Jersey tax purposes. Non-residents may be required to make estimated tax payments with the sale or transfer of real property in New Jersey.
You can avoid making estimated payments by asking your employer to withhold more tax from your wages. To do this, complete Form NJ-W4 and give it to your employer. If you have pension income, file Form NJ-W-4P with the payer of the pension to have tax withheld.
For more information, see Tax Topic Bulletin GIT-8 , Estimating Income Taxes.