Are pension or retirement income taxable in New Jersey?

In New Jersey, pension or retirement income may be subject to state income tax, but there are specific exceptions that may apply based on certain criteria. For many individuals, income from pensions, annuities, and retirement plans is taxable. However, New Jersey does offer some exemptions for specific types of retirement income. For example, certain pension income may be exempt from state taxation for individuals aged sixty-two or older, and for disabled taxpayers regardless of age, up to a maximum threshold. It is important to note that Social Security benefits are not taxable in New Jersey. In addition, funds withdrawn from various retirement accounts, such as traditional Individual Retirement Accounts and other similar plans, may also be subject to state tax. To have a comprehensive understanding of how pension or retirement income will affect individual tax liability in New Jersey, it is recommended to consult the most recent guidelines and resources provided on the official New Jersey Division of Taxation website. This resource will offer detailed information on eligibility for exemptions and other relevant factors in determining tax obligations.