For more on how deductions change taxable wages, see our
pre-tax vs. post-tax deductions guide.
New Jersey Paycheck Tax Calculator: How New Jersey Withholding Works
A New Jersey paycheck calculator has four state
lines to get right: income tax and three contributions. On your pay
stub you'll usually see
SIT or NJ state withholding,
plus NJ SUI, NJ SDI (or TDI) and NJ FLI. Our
pay stub abbreviations list
explains the other codes.
Federal Withholding for New Jersey Paychecks
Federal withholding uses your Form W-4 and the 2026 federal
brackets. The calculator supports filing status, Step 2(c), Step 3
credits and Step 4(a), 4(b) and 4(c). If you claim the new overtime
or tips deductions, our
W-4 Step 4(b) worksheet guide
shows how to enter them, and our
2026 federal tax withholding guide
covers the rest.
Working Across State Lines
New Jersey has a reciprocal agreement with
Pennsylvania:
residents of either state pay income tax only at home, using Form
NJ-165 or its Pennsylvania equivalent. There's no agreement with New
York, so New Jersey residents working in New York have New York tax
withheld and claim a credit on their New Jersey return. New York
City's own income tax only applies to city residents.
Bonuses
New Jersey withholds on bonuses using the same rate tables, usually
by adding the bonus to regular wages for that pay period. Federal
withholding (usually a flat 22%), FICA and the UI, TDI and FLI
contributions apply too. See
why bonuses are taxed so high.
Employer Payroll Costs in New Jersey
Employers pay their own state unemployment insurance
on the first $44,800 of wages and TDI at 0.1% to 0.75%. Newark and
Jersey City add a 1% employer payroll tax. None of those come out of
your pay. At year-end, our
W-2 form generator
can use the same wage and withholding totals.
Why Your Actual New Jersey Paycheck May Differ
This calculator is a close estimate, not your employer's payroll
run. Your NJ-W4 rate table, year-to-date wages (UI stops at $44,800),
whether your employer uses a private disability plan instead of the
state plan, benefit elections and a 27th biweekly payday in some
years can all move the result a little.
Three-paycheck months
change monthly cash flow but not the tax on each check. For a full
checklist, see why your paycheck is lower than expected.
Official 2026 New Jersey Payroll Sources
Payroll facts on this page are checked against the
NJ-WT withholding instructions,
the New Jersey withholding rate tables,
the NJ Department of Labor contribution rates,
the 2026 minimum wage announcement
and IRS Publication 15-T for 2026.
Reviewed September 25, 2026.
