Use our New Jersey Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions and get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your New Jersey Paycheck is Calculated
Your paycheck represents your gross earnings minus the taxes and deductions required by federal and state laws. The general formula is:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s what each term means:
- Gross Pay: The total amount you earn before taxes and deductions.
- Federal Income Tax: A federal tax withheld based on IRS tax brackets, your filing status, and W-4 details.
- FICA Taxes: Includes Social Security and Medicare taxes that fund federal programs.
- State Income Tax: Taxes collected by New Jersey based on your income level.
- Local Taxes: Additional income taxes imposed by certain cities or municipalities, if applicable.
A Guide to New Jersey State Payroll Taxes
New Jersey State Income Tax
New Jersey has a progressive state income tax system, which means higher income earners pay higher rates. The 2025 tax brackets for single filers are shown below:
| Taxable Income (Single Filers) | 2025 Tax Rate |
|---|---|
| Up to $20,000 | 1.4% |
| $20,001 – $35,000 | 1.75% |
| $35,001 – $40,000 | 3.5% |
| $40,001 – $75,000 | 5.525% |
| $75,001 – $500,000 | 6.37% |
| $500,001 – $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
New Jersey allows a standard deduction and personal exemptions depending on your filing status, age, and dependents. Taxpayers can also claim deductions for medical expenses, property taxes, and other eligible costs.
State-Specific Programs & Withholdings
In addition to income tax, New Jersey requires employees to contribute to several state programs through paycheck withholdings:
- New Jersey State Disability Insurance (SDI): Funds temporary disability and family leave benefits. The employee contribution rate for 2025 is 0.47% of taxable wages, capped at $161,400.
- Unemployment Insurance (UI): Employees pay 0.3825% of the first $43,100 in wages for 2025.
- Workforce Development/Supplemental Workforce Fund: Employee contribution rate is 0.0425% on taxable wages.
- Family Leave Insurance (FLI): Employees contribute 0.09% on the first $161,400 in wages for 2025.
These deductions appear on your pay stub and support programs that provide financial assistance during unemployment, disability, or family leave.
Understanding Federal & FICA Taxes
Federal taxes apply to all U.S. employees regardless of state. These include:
- Social Security Tax: 6.2% on wages up to $168,600 in 2025.
- Medicare Tax: 1.45% on all wages, with an extra 0.9% on income over $200,000 for single filers or $250,000 for joint filers.
Federal income tax withholding depends on your taxable income, filing status, and allowances reported on your W-4 form.
Local Taxes in New Jersey
Most areas in New Jersey do not levy local income taxes. However, some municipalities, such as Jersey City and Newark, may impose local payroll taxes on employers (not directly on employees). These taxes typically fund city infrastructure and public services but do not affect employee net pay directly.
Frequently Asked Questions (FAQs) About New Jersey Paychecks
What is the minimum wage in New Jersey?
As of 2025, New Jersey’s minimum wage is $15.50 per hour for most employees. Seasonal and small business employees may earn slightly lower rates as part of the state’s tiered wage system.
How often are paydays in New Jersey?
New Jersey employers must pay employees at least twice a month, but some may choose weekly or bi-weekly pay schedules depending on company policy.
What is the New Jersey state tax rate for 2025?
The New Jersey state income tax ranges from 1.4% to 10.75% for 2025, depending on your income bracket.
Are 1099 contractors subject to New Jersey taxes?
Yes. Independent contractors in New Jersey are responsible for paying state income taxes directly through estimated quarterly payments since taxes are not withheld from their pay.
What are the overtime laws in New Jersey?
Non-exempt employees in New Jersey must receive 1.5 times their regular hourly rate for all hours worked beyond 40 in a workweek. Some occupations, like certain farm or executive positions, are exempt.
Disclaimer
This New Jersey Paycheck Calculator provides an estimate of your net pay based on current tax rates and payroll laws. Actual paycheck amounts may vary depending on your specific circumstances, benefits, and withholdings. For personalized financial or tax advice, consult a certified tax professional or financial advisor.
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