New Jersey Paycheck Calculator

New Jersey Income Tax Rate

New Jersey taxes wages with progressive brackets and a long-standing high top marginal rate. Payroll starts from gross pay and subtracts pre-tax benefits—traditional 401(k), Section 125 health premiums, HSA/FSA, and commuter plans—arriving at taxable wages. Employers then withhold federal income tax, FICA, and New Jersey income tax using your NJ-W4 elections and pay frequency. Supplemental wages (bonuses, commissions) may be withheld using percentage or aggregate methods. Most municipalities do not add employee-paid wage taxes, though some cities assess separate employer payroll taxes. The table below shows the statewide top individual rate for context; your effective rate is usually lower after deductions, credits, and pre-tax benefits reduce taxable income.

New Jersey Median Household Income

New Jersey’s median household income is among the nation’s highest, buoyed by pharmaceuticals, healthcare, finance, logistics, education, and professional services across North/Central Jersey and the Shore. After pandemic volatility, nominal gains resumed as labor markets tightened around the NYC and Philadelphia commuter belts. The values below are directional, nominal benchmarks for budgeting or offer comparisons. For purchasing power, consider “real” (inflation-adjusted) dollars and local costs—housing, transportation, childcare, and insurance vary widely by county. Household size, retirement contributions, and employer benefits (health coverage, HSA match) meaningfully shape take-home value throughout New Jersey communities.

New Jersey Federal Insurance Contributions Act (FICA)

FICA funds Social Security and Medicare and applies uniformly in New Jersey. Employees pay 6.2% Social Security up to the federal wage base (employer matched) and 1.45% Medicare on all wages (also matched). High earners owe an additional 0.9% Medicare surtax above federal thresholds; employers do not match the surtax. Traditional 401(k) lowers income-tax wages but not FICA; Section 125 health premiums typically reduce both. New Jersey employees also see state payroll insurance deductions—Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI)—separate from FICA and state income tax; these appear as distinct lines on pay stubs.

New Jersey Number of Cities with Local Income Taxes

New Jersey municipalities do not impose employee-paid local wage income taxes. Some jurisdictions (e.g., Newark, Jersey City) levy employer payroll taxes, which do not reduce employees’ take-home pay directly.

How Your New Jersey Paycheck Works

Your paycheck starts with gross wages. Payroll subtracts pre-tax benefits—traditional 401(k), HSA/FSA, Section 125 health premiums, and commuter benefits—to determine taxable wages. Withholding then includes federal income tax (W-4), FICA (Social Security and Medicare), New Jersey state income tax (NJ-W4), and state payroll insurance (TDI/FLI). There are no employee local wage taxes. Post-tax deductions—Roth 401(k), garnishments, union dues, charitable gifts—occur after taxes and don’t reduce taxable wages. Pay frequency (weekly, biweekly, semimonthly, monthly) changes cash-flow timing but not your annual tax liability; review stubs after life events or benefit changes to stay aligned.

New Jersey Wage and Hour Laws: Overtime, Pay Frequency

Overtime: New Jersey follows FLSA—most non-exempt employees earn 1.5× their regular rate for hours worked over 40 in a workweek; exemptions apply based on duties and salary thresholds.
Pay frequency: Employers must set regular paydays and pay on consistent intervals; many pay biweekly or semimonthly. State rules also cover timely final pay and itemized wage statements; check employer policy and any agreements for specifics.

FAQs

How do I use the New Jersey Paycheck Calculator?

Enter gross pay, schedule, W-4/NJ-W4 details, pre-tax benefits, and post-tax deductions to estimate federal, FICA, state, and insurance withholding.

Does New Jersey tax wage income?

Yes. New Jersey uses progressive brackets; see the 10-year table for the top marginal rate trend.

Do any New Jersey cities tax employee wages?

No. Cities don’t levy employee wage income taxes; some impose employer payroll taxes that don’t reduce your net pay.

What extra state payroll deductions appear on NJ pay stubs?

Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI), separate from FICA and state income tax.

How are bonuses withheld in New Jersey?

Employers may use federal percentage or aggregate methods; state withholding follows New Jersey tables for supplemental wages.

Do 401(k) and HSA contributions reduce NJ taxes?

They lower income-tax wages and can increase net pay; traditional 401(k) doesn’t reduce FICA, many health premiums do.

Why did my New Jersey withholding change this year?

Updated forms, raises, supplemental pay, benefit elections, or legislative rate changes can alter per-check withholding.

What appears on a typical New Jersey pay stub?

Federal tax, Social Security, Medicare, NJ income tax, TDI, FLI, pre/post-tax deductions, year-to-date totals, and net pay.

How often must I be paid in New Jersey?

Employers must maintain regular, published paydays—commonly biweekly or semimonthly—subject to wage-payment rules.

Are tips taxable in New Jersey?

Yes. Reported tips are subject to federal income tax, FICA, and New Jersey income tax.

Does remote work outside NJ affect my withholding?

Yes. Wages are taxed where earned for nonresidents; residents owe NJ tax on all income with credits for other states.