jest.config.js

const nextJest = require('next/jest')

const createJestConfig = nextJest({
  // Provide the path to your Next.js app to load next.config.js and .env files in your test environment
  dir: './',
})

// Add any custom config to be passed to Jest
const customJestConfig = {
  setupFilesAfterEnv: ['<rootDir>/jest.setup.js'],
  testEnvironment: 'jest-environment-jsdom',
  moduleNameMapper: {
    // Handle module aliases
    '^@/(.*)$': '<rootDir>/src/$1',
  },
  collectCoverageFrom: [
    'src/**/*.{js,jsx,ts,tsx}',
    '!src/**/*.d.ts',
    '!src/**/types.ts',
    '!src/**/*.stories.{js,jsx,ts,tsx}',
    '!src/pages/_app.tsx',
    '!src/pages/_document.tsx',
  ],
  coverageThreshold: {
    global: {
      branches: 70,
      functions: 70,
      lines: 70,
      statements: 70,
    },
  },
  testMatch: [
    '<rootDir>/src/**/__tests__/**/*.{js,jsx,ts,tsx}',
    '<rootDir>/src/**/*.{spec,test}.{js,jsx,ts,tsx}',
  ],
}

// createJestConfig is exported this way to ensure that next/jest can load the Next.js config which is async
module.exports = createJestConfig(customJestConfig)