New Jersey Side Hustle Tax Calculator
Calculate your New Jersey state tax (5.53%), federal tax, and self-employment tax on 1099 income.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
New Jersey side hustlers navigate one of the more complex state tax systems in the Northeast, with progressive rates ranging from 1.4% to 10.75%. For most freelancers earning between $40,000 and $75,000, the effective rate is around 5.53%. The Garden State is home to over 9 million residents, with hundreds of thousands working in the gig economy.
How Side Hustle Taxes Work in New Jersey
New Jersey uses a progressive income tax system with seven brackets:
**New Jersey state tax rates (2025):** - 1.4% on income up to $20,000 - 1.75% on $20,001 - $35,000 - 3.5% on $35,001 - $40,000 - 5.525% on $40,001 - $75,000 - 6.37% on $75,001 - $500,000 - 8.97% on $500,001 - $1,000,000 - 10.75% on income over $1,000,000
**No local income taxes:** Unlike Pennsylvania, New Jersey municipalities do not levy local income taxes. You only pay the state progressive rate.
What New Jersey Side Hustlers Owe
Let's say you're a single filer in Jersey City with a $55,000 W-2 job and $18,000 in side hustle income from freelance marketing, with $3,000 in business expenses.
**Your estimated taxes on the side hustle:** - Net self-employment income: $15,000 - Federal SE tax (15.3% of 92.35%): ~$2,122 - Federal income tax on side income: ~$3,300 (22% bracket) - New Jersey state tax (5.525% bracket): ~$829 - **Total additional tax: ~$6,251**
New Jersey Tax Deadlines 2025
New Jersey estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026
Use Form NJ-1040-ES for quarterly estimated payments.
Common Deductions for New Jersey Freelancers
Common deductions for New Jersey freelancers include: - Home office expenses - Business mileage (67 cents/mile for 2025) - Professional services (legal, accounting) - Equipment depreciation and software - New Jersey follows federal AGI calculations closely
New Jersey Side Hustle Tax FAQ
What is New Jersey's tax rate on freelance income?
New Jersey uses progressive tax rates from 1.4% to 10.75%. Most side hustlers with total income between $40,000 and $75,000 pay 5.525% on their marginal earnings.
Does New Jersey have local income taxes?
No, New Jersey does not have local or municipal income taxes. You only pay state-level income tax on your side hustle earnings.
How does New Jersey compare to New York for side hustlers?
New Jersey generally has lower tax rates than New York, especially for NYC residents who face combined state and city rates up to 14.8%.
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This calculator provides estimates only. For personalized advice, consult a qualified tax professional.
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