Savings, CDs and tax
New Jersey After-Tax Yield Calculator
What a savings account or CD keeps after New Jersey's income tax (1.4% to 10.75% in 2026) and federal tax, and whether a Treasury bill, which New Jersey can't tax, keeps more.
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New Jersey income tax brackets, 2026 (taxable income)
| Rate | Single filers | Married filing jointly |
|---|---|---|
| 1.40% | $0 to $20,000 | $0 to $20,000 |
| 1.75% | $20,000 to $35,000 | $20,000 to $50,000 |
| 2.45% | – | $50,000 to $70,000 |
| 3.50% | $35,000 to $40,000 | $70,000 to $80,000 |
| 5.53% | $40,000 to $75,000 | $80,000 to $150,000 |
| 6.37% | $75,000 to $500,000 | $150,000 to $500,000 |
| 8.97% | $500,000 to $1,000,000 | $500,000 to $1,000,000 |
| 10.75% | Over $1,000,000 | Over $1,000,000 |
What a 4.50% APY keeps in New Jersey, by state bracket (22% federal bracket)
| New Jersey rate | Savings or CD keeps | T-bill yield that matches it |
|---|---|---|
| 1.40% | 3.45% | 4.42% |
| 1.75% | 3.43% | 4.40% |
| 2.45% | 3.40% | 4.36% |
| 3.50% | 3.35% | 4.30% |
| 5.53% | 3.26% | 4.18% |
| 6.37% | 3.22% | 4.13% |
| 8.97% | 3.11% | 3.98% |
| 10.75% | 3.03% | 3.88% |
How this calculator works
Bank interest (savings, money market and CDs) is ordinary income to New Jersey and to the IRS. After-tax yield = APY × (1 − federal rate − New Jersey rate − local rate).
Treasury bills, notes and bonds are taxed only federally: federal law bars states from taxing their interest (31 U.S.C. 3124). After-tax yield = T-bill yield × (1 − federal rate).
The New Jersey rates are its 2026 brackets as compiled by the Tax Foundation from state law. Choose the bracket your taxable income falls in; the calculator starts at the rate for a single filer with $75,000 of taxable income (5.53%).
Questions people ask
Does New Jersey tax interest from savings accounts and CDs?
Yes. New Jersey taxes bank interest as ordinary income at 1.4% to 10.75% in 2026, on top of federal income tax.
Are Treasury bills taxable in New Jersey?
No. Interest on Treasury bills, notes, bonds and US savings bonds is exempt from New Jersey income tax by federal law. It is still taxed federally.
Is a T-bill or a CD better in New Jersey?
At New Jersey's 5.53% rate and a 22% federal bracket, a 4.50% CD keeps 3.26%, the same as a T-bill yielding 4.18%. A T-bill paying more than that keeps more.
Do Treasury money market funds avoid New Jersey tax?
Most states let you exclude the share of a fund's dividends that came from Treasury interest. Check New Jersey's income tax instructions for the rule and the percentage your fund reports.
Other states
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Terms explained
Related calculators
Sources
- Tax Foundation: State individual income tax rates and brackets, 2026
- 31 U.S.C. 3124: exemption of US obligations from state and local tax
- IRS: Topic 403, Interest received
Updated by the RateHerald team. The maths is tested against worked examples; report a problem.