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New Jersey Paycheck Calculator

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Use SmartAsset's paycheck calculator to calculate your take home pay per paycheck for both salary and hourly jobs after taking into account federal, state, and local taxes.

Overview of New Jersey Taxes

The Garden State has a progressive income tax system. The rates, which vary depending on income level and filing status, range from 1.40% to 10.75%. The top tax rate in New Jersey is one of the highest in the U.S.

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Taxes --% $--
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State Income --% $--
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FICA and State Insurance Taxes --% $--
Social Security --% $--
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State Disability Insurance Tax --% $--
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State Workers Compensation Insurance Tax --% $--
Pre-Tax Deductions --% $--
Post-Tax Deductions --% $--
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New Jersey Paycheck Calculator

Photo credit: ©iStock.com/Henryk Sadura

New Jersey Paycheck Quick Facts

  • New Jersey income tax rate: 1.40% - 10.75%
  • Median household income: $87,016 (U.S. Census Bureau)
  • Number of cities with local income taxes: 0

How Your New Jersey Paycheck Works

Your New Jersey employer is responsible for withholding FICA taxes and federal income taxes from your paychecks. Medicare and Social Security taxes together make up FICA taxes. Your employer will withhold 1.45% of your wages for Medicare taxes each pay period and 6.2% in Social Security taxes. Your employer matches your Medicare and Social Security contributions, so the total payment is doubled. Any wages you earn in excess of $200,000 is subject to a 0.9% Medicare surtax, which is not matched by your company.

Federal income taxes are also withheld from each of your paychecks. Your employer uses the information that you provided on your W-4 form to determine how much to withhold in federal income tax each pay period. Several factors - like your marital status, salary and additional tax withholdings - play a role in how much is taken out from your wages for federal taxes.

The new version of the W-4 includes major changes from the IRS. Most notably, this involves the removal of allowances. Instead, it requires you to enter annual dollar amounts for things such as non-wage income, income tax credits, total annual taxable wages and itemized and other deductions. The revised form also features a five-step process that lets you enter personal information, claim dependents and indicate additional income and jobs.

New Jersey Median Household Income

YearMedian Household Income
2020$87,016
2019$85,751
2018$81,740
2017$80,088
2016$76,126
2015$72,222
2014$71,919
2013$70,165
2012$69,667
2011$67,458

New Jersey has a progressive income tax system, in which the brackets are dependent on a taxpayer's filing status and income level. As a result, the state's income tax is structured similarly to the federal income tax system.

If you are single or married and filing separately in New Jersey, there are seven tax brackets that apply to you. At the lower end, you will pay at a rate of 1.40% on the first $20,000 of your taxable income. Meanwhile, the highest tax bracket reaches 10.75% on income over $1 million.

On the other hand, there are eight tax brackets for married people who file jointly and heads of household. The lowest and highest rates are the same as for other filers, ranging from 1.40% to 10.75%. However, there's an extra bracket from $50,000 to $70,000 that has a 2.45% rate associated with it.

If you're an employee in Newark, it’s important to know that while the city has a 1% payroll tax, it applies to employers, not workers. Therefore, no New Jersey cities levy local income taxes.

Income Tax Brackets

Single Filers
New Jersey Taxable IncomeRate
$0 - $20,0001.400%
$20,000 - $35,0001.750%
$35,000 - $40,0003.500%
$40,000 - $75,0005.525%
$75,000 - $500,0006.370%
$500,000 - $1,000,0008.970%
$1,000,000+10.750%
Married, Filing Jointly
New Jersey Taxable IncomeRate
$0 - $20,0001.400%
$20,000 - $50,0001.750%
$50,000 - $70,0002.450%
$70,000 - $80,0003.500%
$80,000 - $150,0005.525%
$150,000 - $500,0006.370%
$500,000 - $1,000,0008.970%
$1,000,000+10.750%
Married, Filing Separately
New Jersey Taxable IncomeRate
$0 - $20,0001.400%
$20,000 - $35,0001.750%
$35,000 - $40,0003.500%
$40,000 - $75,0005.525%
$75,000 - $500,0006.370%
$500,000 - $1,000,0008.970%
$1,000,000+10.750%
Head of Household
New Jersey Taxable IncomeRate
$0 - $20,0001.400%
$20,000 - $50,0001.750%
$50,000 - $70,0002.450%
$70,000 - $80,0003.500%
$80,000 - $150,0005.525%
$150,000 - $500,0006.370%
$500,000 - $1,000,0008.970%
$1,000,000+10.750%

A financial advisor in New Jersey can help you understand how taxes fit into your overall financial goals. Financial advisors can also help with investing and financial planning - including retirement, homeownership, insurance and more - to make sure you are preparing for the future.

How You Can Affect Your New Jersey Paycheck

Most people want a bigger paycheck, and you can certainly take steps toward that - for instance, by asking for a raise or by working extra hours (if you are eligible for overtime). But while it’s always nice to increase your earnings, there are times when it might be smart to shrink your actual paycheck. If you elect to put more money into a pre-tax retirement account like a 401(k) or 403(b), for instance, you will save for the future while lowering your taxable income. The money that you put into a 401(k) or 403(b) comes out of your paycheck before taxes are applied, so by putting more money in a retirement account, you are paying less money in taxes right now. So, while you will receive a smaller paycheck each month, you will actually get to keep more of your salary this way.

Another reason that you might elect to receive a smaller paycheck is if you always find yourself paying a tax bill in April. If this is the case, you may be underpaying your taxes all year. One way to fix this is to ask your employer to withhold an additional dollar amount from your paychecks, say $50 per paycheck. Ultimately you will pay the same amount in taxes, but this way you’re spreading the tax payments out and paying a little more each pay period, instead of paying it all in a lump sum come tax season.

New Jersey Top Income Tax Rate

YearTop Income Tax Rate
202110.75%
202010.75%
201910.75%
201810.75%
20178.97%
20168.97%
20158.97%
20148.97%
20138.97%
20128.97%
20118.97%