New Jersey Paycheck Calculator

New Jersey has one of the most progressive income tax structures in the United States, with seven brackets spanning from 1.4% on the lowest income to 10.75% on income over $1 million. For 2024, the brackets for single filers are: 1.4% on the first $20,000 of taxable income; 1.75% on income from $20,001 to $35,000; 3.5% on income from $35,001 to $40,000; 5.525% on income from $40,001 to $75,000; 6.37% on income from $75,001 to $500,000; 8.97% on income from $500,001 to $1,000,000; and 10.75% on income above $1,000,000. The brackets and rates for married filers differ, and the middle brackets are wider for joint filers, providing some relief.

Despite having a top marginal rate of 10.75%, the effective New Jersey income tax rate for most middle-income earners is far lower because the top bracket only applies to the slice of income above $1 million. A single filer earning $80,000 pays 1.4% on the first $20,000, 1.75% on the next $15,000, 3.5% on the next $5,000, and 5.525% on the remaining $40,000 — producing a blended effective rate of roughly 4.2% before any deductions or exemptions are applied. Understanding this graduated structure is essential for accurate paycheck withholding planning.

New Jersey also offers personal exemptions that reduce taxable income: $1,000 per exemption for single filers and $2,000 for married filers. Additional exemptions are available for age (over 65), blindness, and dependents. Unlike many states, New Jersey does not allow you to deduct federal income taxes paid from your state taxable income, and New Jersey's itemized deductions differ somewhat from the federal itemized deductions — for example, New Jersey does not allow a deduction for state and local income taxes at the state level, and the state caps certain deductions at different levels than the federal code.

New Jersey's State Disability Insurance (SDI) program provides short-term disability benefits to employees who are unable to work due to a non-work-related illness, injury, or pregnancy. The SDI premium is paid entirely by employees — employers do not contribute — at a rate of 0.09% of gross wages for 2024, subject to a taxable wage base of $161,400. The maximum annual SDI contribution is therefore approximately $145. SDI benefits replace up to two-thirds of your average weekly wage, subject to a maximum weekly benefit, for up to 26 weeks of covered disability.

New Jersey's Family Leave Insurance (FLI) program is a companion to SDI that provides paid leave when you need to care for a seriously ill family member or bond with a new child. FLI is also funded entirely by employee contributions at a rate of 0.09% of wages for 2024, with the same $161,400 taxable wage base. FLI benefits can replace up to 85% of average weekly wages for up to 12 weeks per year. Both SDI and FLI appear as separate line items on your New Jersey pay stub and together represent an annual deduction of approximately $290 for a worker earning the maximum wage base.

New Jersey's SDI and FLI programs work in tandem with the federal Family and Medical Leave Act (FMLA), which provides up to 12 weeks of unpaid, job-protected leave. When combined, these programs mean that eligible New Jersey workers can take extended family or medical leave with wage replacement through FLI and job protection through FMLA simultaneously. The NJ Division of Temporary Disability and Family Leave Insurance administers both programs, and claims can be filed online. Benefits are taxable for federal income tax purposes but generally not subject to New Jersey income tax, which is an important distinction for year-end tax planning.

New Jersey workers are subject to the same federal income tax withholding rules as employees anywhere in the United States. Federal withholding is calculated using the progressive bracket system — 10%, 12%, 22%, 24%, 32%, 35%, and 37% for 2024 — applied to wages after accounting for the elections on Form W-4. The 2024 standard deduction is $14,600 for single filers and $29,200 for married filing jointly. Pre-tax 401(k) contributions, health insurance premiums under a Section 125 plan, and HSA contributions all reduce the gross wage base subject to federal income tax, helping lower the federal withholding amount.

New Jersey residents who earn income in New York City face a particularly complex tax situation. New York City imposes its own city income tax of approximately 3.078% to 3.876% on income earned within city limits. New Jersey residents who commute to New York pay the New York State and New York City income taxes on wages earned there, and then claim a credit on their New Jersey return for taxes paid to another jurisdiction. This credit prevents true double taxation but requires careful calculation, especially for workers whose income is partially earned in each state.

High-income New Jersey residents face some of the highest combined federal and state marginal tax rates in the country. A New Jersey resident earning $600,000 faces a 37% federal rate plus an 8.97% New Jersey rate on that income, for a combined marginal rate exceeding 45% before accounting for FICA. When planning for bonuses, stock option exercises, or large one-time income events, high-income earners in New Jersey should carefully model the total tax impact and consider strategies such as deferred compensation, charitable giving, or retirement contributions to manage the combined burden.

In addition to SDI and FLI, New Jersey workers are subject to three other small payroll deductions: Unemployment Insurance (UI), Workforce Development (WF), and Supplemental Workforce Fund (SWF). The UI tax is funded by employers for most workers, but employees in some situations contribute as well. For 2024, the employee UI contribution rate is 0.3825% of wages up to the $42,300 wage base, resulting in a maximum annual employee UI deduction of approximately $162. Workforce Development is assessed at 0.0425% of wages up to the same base, and SWF at 0.1% up to the same base.

The combined employee contribution to NJ UI, WF, and SWF for 2024 is approximately 0.525% of wages up to $42,300, or a maximum of roughly $222 per year for full-year workers at or above the wage base. These deductions fund New Jersey's unemployment insurance trust fund and workforce training programs. Employees who are laid off or otherwise become involuntarily unemployed can claim NJ unemployment benefits, which replace approximately 60% of average weekly wages up to a maximum weekly benefit that adjusts annually.

All of the New Jersey state-specific deductions — UI, WF, SWF, SDI, and FLI — appear as separate line items on your pay stub and are clearly labeled. New Jersey law requires employers to provide employees with a detailed statement of earnings and deductions each pay period. When reviewing your pay stub, make sure each of these items matches the expected rates: for 2024, SDI should be 0.09%, FLI should be 0.09%, and the combined UI/WF/SWF should be approximately 0.525% of wages up to the wage base. If any rate looks materially different, contact your payroll department to verify the correct withholding rates are being applied.

To see how all the pieces fit together, consider a New Jersey employee earning $6,000 per month in gross wages ($72,000 annually), filing as single, contributing $500 per month to a 401(k), and paying $200 per month for health insurance through a Section 125 cafeteria plan. After pre-tax deductions, federal taxable wages are $5,300 per month. New Jersey taxable wages are also $5,300 because NJ follows the federal treatment of these pre-tax benefits, though NJ does not allow the 401(k) deduction for state purposes in all circumstances — check with your employer to confirm the NJ wage treatment.

Federal income tax on $5,300 per month for a single filer produces approximately $600 in monthly withholding based on 2024 IRS tables. For New Jersey income tax, the annualized wage of $63,600 falls primarily in the 5.525% bracket after applying the lower bracket rates to the first $40,000 of taxable income, resulting in approximately $250 in monthly NJ withholding. FICA on $5,800 (pre-health insurance gross minus 401k, as 401k does not reduce FICA but health insurance under Section 125 does): Social Security $359 and Medicare $84, total FICA $443 per month.

Additional NJ deductions: SDI ($6,000 × 0.09% ÷ 12 = $0.45 per month effectively given the wage base cap, but approximately $5 per month across the year), FLI (similar, approximately $5 per month), UI/WF/SWF ($42,300 annual cap × 0.525% ÷ 12 = approximately $19 per month). Total monthly deductions: $500 (401k) + $200 (health) + $600 (federal) + $250 (NJ tax) + $443 (FICA) + $29 (SDI/FLI/UI) = $2,022. Net monthly take-home pay: $6,000 − $2,022 = $3,978, or approximately $47,736 per year, representing about a 34% total deduction rate — typical for a middle-income New Jersey worker.