30 Jun How much of my retirement money can I get without taxes?

Q. I have a question on state tax on my personal pension from New Jersey. I’m 55 years old. What is the exclusion amount filing jointly and married?
— Still working

A. At age 55, you’re not there yet.

But here’s how it works.

The New Jersey pension exclusion doesn’t start until you’re age 62, unless you’re disabled, said Neil Becourtney, a certified public accountant and tax director with Smolin, Lupin & Co. in Red Bank.

Once the age requirement has been met — 2032 in your situation — total gross income reported on your New Jersey income tax return cannot have exceeded $150,000, Becourtney said.

The level of your total gross income will determine how much of a pension exclusion you can claim, he said.

“If total income is $100,000 or less, the full amount of pension income can be excluded up to $100,000,” he said. If total income is in the range of $100,001 to $125,000, 50% of pension income can be excluded from income. If total income is in the range of $125,001 to $150,000, 25% of pension income can be excluded from income.”

If total income exceeds $150,000, no pension exclusion can be claimed resulting in the entire pension income being subject to New Jersey tax, Becourtney said.

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This story was originally published in June 2025.

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