2026 median income limits for New Jersey by household size. Free calculator and filing guide.
The table below shows the approximate annual and monthly income thresholds for New Jersey by household size. If your annualized income (6-month average multiplied by 12) is at or below the figure for your household size, you pass Part 1 of the means test.
| Household Size | Annual Median | Monthly Equivalent |
|---|---|---|
| 1 person | $85,671 | $7,139 |
| 2 persons | $111,372 | $9,281 |
| 3 persons | $130,220 | $10,852 |
| 4 persons | $151,638 | $12,636 |
| 5 persons | $161,538 | $13,462 |
| 6 people | $171,438 | $14,286 |
For each additional person above 4, add approximately $9,900 to the 4-person figure.
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New Jersey is one of the states that allows bankruptcy filers to choose between state exemptions and federal bankruptcy exemptions (11 U.S.C. Section 522(d)). This gives filers more flexibility to protect their property. In many cases, the federal exemptions offer higher protection for personal property, while state exemptions may provide better homestead coverage. A careful comparison of both sets is essential before filing.
1 district
New Jersey has one federal bankruptcy district. All bankruptcy cases in the state are filed in this single district court.
With a single-person median income of $85,671, New Jersey has one of the higher income thresholds in the country. This means more filers in New Jersey may pass Part 1 of the means test compared to lower-income states. However, the higher cost of living in New Jersey often offsets the higher median.
There is no single income limit. The means test compares your annualized income (6-month average times 12) to the median income for your household size. For a single person in New Jersey, the current median is approximately $85,671 per year. For a family of four, it is approximately $151,638. If your income is below the median for your household size, you pass Part 1 of the means test.
Yes. New Jersey allows bankruptcy filers to choose between state exemptions and federal bankruptcy exemptions under 11 U.S.C. Section 522(d). You must choose one complete set -- you cannot mix and match individual exemptions from both. Compare both sets carefully with attention to the homestead, vehicle, and wildcard exemptions.
Failing Part 1 of the means test (having above-median income) does not disqualify you. You must then complete Part 2 (Form 122A-2), which deducts allowable expenses -- including IRS standard amounts, actual secured debt payments, taxes, insurance, and child care. Many above-median filers pass Part 2. If you still do not pass, Chapter 13 is an alternative that allows debt repayment over 3 to 5 years with no income ceiling.
Free tools and guides from the Open Bankruptcy Project.
Means Test Calculator Exemptions by State