New Jersey payroll taxes

New Jersey state income tax: Progressive. Employers withhold using your NJ-W4 and current NJ withholding tables.
Employee state insurance contributions: New Jersey withholds Unemployment Insurance (UI), Temporary Disability Insurance (TDI), Family Leave Insurance (FLI), and Workforce Development/Supplemental Workforce Fund (WF/WF) from employee wages up to annual wage bases.
Local income tax: No wage-based employee city income taxes. (Some municipalities levy employer payroll taxes—these are not deducted from employee pay.)
FICA (federal): Social Security and Medicare—see FICA details below.
Federal income tax (FIT): Withheld using IRS rules based on your federal Form W-4.
Pre-tax deductions: Traditional 401(k), HSA/FSA, and Section 125 premiums may reduce FIT/NJ taxable wages (and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, charitable giving, and other after-tax items reduce net pay after taxes.

How Your New Jersey Paycheck Works

Start with gross pay (salary for the period or hourly rate × hours; include overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Apply FICA (Social Security to the federal wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your W-4 elections.
Calculate New Jersey state income tax withholding using NJ-W4 and state tables.
Withhold NJ employee insurance contributions (UI, TDI, FLI, WF/WF) up to their annual wage bases.
Employer separately pays NJ employer UI and any municipal employer payroll taxes—these do not reduce your net pay.
Subtract post-tax deductions to arrive at your net pay.

New Jersey unemployment insurance (UI) — 10-year snapshot

New Jersey employees contribute to UI (and related funds) via payroll withholding; employers also contribute separately. Values below are illustrative ranges—confirm your annual rate notice and wage base for precision.

Year	Employee UI Rate (approx.)	Employee Pays?	Employee Taxable Wage Base (approx.)	Employer New/Experienced Rate Range (approx.)
2016	~0.38%	Yes	$32,000	~1.2%–7.0%
2017	~0.38%	Yes	$33,500	~1.2%–7.0%
2018	~0.38%	Yes	$33,700	~1.2%–7.1%
2019	~0.42%	Yes	$34,400	~1.2%–7.3%
2020	~0.42%	Yes	$35,300	~1.2%–7.4%
2021	~0.47%	Yes	$36,200	~1.2%–7.6%
2022	~0.47%	Yes	$39,800	~1.2%–7.7%
2023	~0.50%	Yes	$42,300	~1.2%–7.9%
2024	~0.50%	Yes	$43,000	~1.2%–8.1%
2025	~0.50%	Yes	$44,000	~1.2%–8.3%

New Jersey salary threshold

New Jersey relies on federal FLSA white-collar standards. Exempt status requires meeting the current federal salary threshold and applicable duties tests. If either test is not met, overtime is due after 40 hours in a workweek.

Median Household Income — New Jersey (10 years, current dollars)

Illustrative nominal values showing trend; confirm with the latest American Community Survey for official statistics.

Year	Median Household Income
2015	$72,200
2016	$76,100
2017	$80,000
2018	$82,800
2019	$85,700
2020	$88,100
2021	$96,100
2022	$101,400
2023	$105,600
2024	$107,900

New Jersey Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

New Jersey has no employee wage-based local income taxes. Some cities (e.g., Newark, Jersey City) levy employer payroll taxes; those are paid by the employer and not withheld from employee wages. Your pay stub will typically show federal withholding, NJ state income tax, FICA, and NJ UI/TDI/FLI/WF contributions.

Local income tax table (employee wage tax)

City	Employee Wage Tax	Notes
Statewide (New Jersey)	None	No municipal percentage-of-wages income tax on employees

New Jersey Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily overtime rule).
Minimum wage: New Jersey sets a statewide minimum and annual increases; verify the current rate for your pay period and employer-size category.
Pay frequency: Employers must set regular, posted paydays (weekly/biweekly/semimonthly common) and pay on time; final-pay deadlines apply at separation.
Breaks/meals: Follow state and federal requirements; minors and certain industries have additional protections.

Additional New Jersey forms

NJ-W4 — Employee’s New Jersey Withholding Certificate.
Withholding returns — Employer NJ-927/WR-30 filings (deposit schedule, quarterly wage reports) and annual reconciliation with W-2 filing.
UI/TDI/FLI/WF — Employer registration and rate notices; employee contributions withheld via payroll.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required posters — State wage/hour, UI/DI/FLI, safety, and federal postings.

FAQs — New Jersey Salary Paycheck Calculator

How do I use a New Jersey Salary Paycheck Calculator to estimate net pay?

Enter gross pay and pay frequency, your federal W-4 and NJ-W4 elections, and any pre-/post-tax deductions. The calculator applies FICA, federal withholding, NJ state income tax, and NJ employee contributions (UI, TDI, FLI, WF) up to annual wage bases.

Why does my NJ pay stub show UI, TDI, FLI, and WF deductions?

New Jersey funds unemployment, temporary disability, family leave, and workforce programs partially through employee payroll contributions. These appear as separate lines and stop after reaching the yearly wage base.

Do any NJ cities take a local income tax from my wages?

No. Employees do not pay a municipal wage tax in New Jersey. Some cities charge employers a payroll tax, but that does not come out of employee paychecks.

Do employees pay NJ unemployment insurance from wages?

Yes, employees contribute a small UI percentage up to the wage base. Employers also contribute separately at their experience rates.

Which form changes my New Jersey state withholding?

Use NJ-W4 for state withholding and the federal W-4 for federal withholding. Update after life events, address changes, or when you hold multiple jobs.

What salary makes me exempt from overtime in New Jersey?

New Jersey generally follows federal FLSA rules. Exempt status requires meeting the current federal salary threshold and the applicable duties tests; otherwise, overtime is due after 40 hours/week.

How are bonuses and commissions taxed on a New Jersey paycheck?

They’re subject to federal supplemental methods, FICA, NJ state withholding, and NJ employee contributions (up to wage bases). Enter them as supplemental pay to apply correct methods.

Can I add a flat extra amount of New Jersey withholding?

Yes. Request an additional state withholding amount on NJ-W4. Add the same extra amount in the calculator to preview the impact on take-home and your year-end balance.

How do pre-tax benefits (401(k), HSA, FSA) affect my NJ paycheck?

Pre-tax benefits reduce federal and often NJ taxable wages. Some cafeteria-plan premiums may also reduce FICA. Enter them as pre-tax to increase take-home pay.

Are Roth 401(k) contributions pre-tax in New Jersey?

No. Roth contributions are post-tax and do not reduce taxable wages today. Enter them as post-tax deductions; qualified withdrawals may be tax-free later.

Why did my net increase mid-year without a raise?

You may have reached the Social Security or NJ UI/TDI/FLI wage bases, so those withholdings stopped for the remainder of the year while Medicare continues.

How do I handle overtime and shift differentials in the calculator?

Enter overtime hours and premium rates; the calculator recomputes FICA, federal/NJ withholding, and state program contributions for the pay period.

What pay frequency should I choose?

Use your employer’s schedule (weekly, biweekly, semimonthly, monthly). The calculator prorates wages and withholdings per period and annualizes statutory caps like the Social Security and NJ wage bases.

How are tips treated for New Jersey payroll?

Reported tips are subject to FIT, FICA, NJ state withholding, and program contributions. Include tips in the estimate to avoid under-withholding.

Does Additional Medicare tax apply in New Jersey?

Yes—federally. Employees pay an extra 0.9% on wages above $200,000; employers do not match it. The calculator adds it automatically when applicable.

Can student employees be exempt from FICA?

Some student workers at qualifying institutions may be FICA-exempt while enrolled at least half-time. If exempt, remove FICA lines for that job in your estimate.

How do I reflect year-to-date (YTD) wages and taxes?

Enter YTD amounts so the calculator stops Social Security and NJ UI/TDI/FLI/WF at their wage bases and continues only what still applies.

Are PTO cash-outs taxable?

Yes. PTO payouts are taxable wages subject to FIT, FICA, NJ withholding, and NJ employee contributions (until wage bases are met). If paid separately, employers may use supplemental methods.

How are non-cash awards or imputed benefits handled?

Add the fair market value to taxable wages. The calculator withholds FIT, FICA, NJ tax, and NJ contributions on the imputed amount.

Can I claim exempt from New Jersey withholding?

Only if you meet NJ criteria (e.g., no NJ tax liability last year and none expected this year). Otherwise, use regular NJ-W4 elections or request a specific extra amount.

How do charitable payroll deductions affect taxes?

They are typically post-tax and do not reduce payroll taxable wages. Any deduction benefits are reconciled on your return if you itemize.

What if I work partly outside New Jersey?

Withholding generally follows where wages are sourced and reciprocity/credit rules. If you earn in another state, that state may require withholding; your NJ return may allow credits.

How do garnishments affect my paycheck?

Enter court-ordered amounts as post-tax deductions. The calculator subtracts them after taxes and required NJ contributions. Statutory limits and employer processing rules apply.

How can I avoid a large balance due at year-end?

Increase per-paycheck withholding (federal and NJ) via extra amounts on W-4 and NJ-W4, adjust pre-tax benefits, or make estimated payments. Use the calculator to preview outcomes.

Can I compare traditional vs. Roth 401(k) effects on take-home?

Yes—run one scenario with traditional (pre-tax) and another with Roth (post-tax) to see immediate net-pay differences and long-term tax implications.

How are relocation reimbursements treated?

Most moving reimbursements are taxable unless a specific exclusion applies. Include taxable portions in wages so FIT, FICA, NJ tax, and NJ contributions are withheld properly.

Does New Jersey have a state disability insurance payroll deduction?

Yes. TDI (and FLI) are state insurance programs funded in part by employee payroll deductions up to annual wage bases.

How do I model a mid-year raise or promotion?

Run two scenarios—old rate for already-paid periods and new rate for remaining periods—then combine to project full-year taxes and contributions.

New Jersey Salary Paycheck Calculator