Are pension or retirement income taxable in New Jersey?

Pension or retirement income is subject to taxation in New Jersey. The state follows a policy of taxing all income received from pensions, annuities, and retirement accounts. This includes distributions from employer-sponsored plans, individual retirement accounts (IRAs), and pension plans. However, some exceptions exist. If you are a resident over the age of 62 or older, and your total income is below certain thresholds, you may qualify for a pension exclusion. This exemption allows a portion of your pension or retirement income to be exempt from state income tax. Additionally, military pensions, certain disability pensions, and Social Security benefits are not subject to taxation in New Jersey. It is advisable to consult the official New Jersey Division of Taxation website or seek professional advice for specific details regarding your individual circumstance.