How Etsy Taxes Work in New Jersey
New Jersey has a 10.75% state income tax rate — one of the highest in the US. Etsy workers in New Jersey must file both federal Form 1040-ES and New Jersey Form NJ-1040-ES for quarterly estimated payments.
SE Tax
15.3%
Federal (all states)
Federal Tax
10–37%
Based on income
NJ State Tax
10.75%
New Jersey rate
2026 Quarterly Tax Deadlines for New Jersey
| Quarter | Due Date | Federal (1040-ES) | NJ State |
|---|
| NOWQ1 2026 | April 15, 2026 | ✓ Required | Required |
| Q2 2026 | June 16, 2026 | ✓ Required | Required |
| Q3 2026 | September 15, 2026 | ✓ Required | Required |
| Q4 2026 | January 15, 2027 | ✓ Required | Required |
Top Tax Deductions for Etsy Workers in New Jersey
FAQ — Etsy Taxes in New Jersey 2026
Q: How much is Etsy tax in New Jersey?
In New Jersey, Etsy workers pay 15.3% self-employment tax, federal income tax (10–37%), plus 10.75% New Jersey state income tax. On $50,000 net income, expect to owe approximately $17,000–$22,000 total.
Q: Do I need to make quarterly payments in New Jersey?
Yes. In New Jersey, you must make both federal quarterly estimated payments (IRS Form 1040-ES) and New Jersey state quarterly payments if you expect to owe $1,000 or more.
Q: What is the self-employment tax rate in New Jersey for Etsy workers?
The federal self-employment tax rate is 15.3% regardless of state. This covers Social Security (12.4%) and Medicare (2.9%). In New Jersey, you additionally pay 10.75% state income tax.
Q: Does Etsy take out taxes in New Jersey?
No. Etsy classifies workers as independent contractors, not employees. No taxes are withheld from your payments. You are responsible for paying all federal SE tax, federal income tax, and New Jersey state income tax yourself, typically through quarterly estimated payments.
Disclaimer: State tax rates are for estimation purposes. Verify with your state's department of revenue or a licensed CPA. Not affiliated with the IRS, Etsy, or any government agency.