New Jersey paycheck taxes at a glance
| Income tax on wages | Progressive, 1.4% – 10.75% |
|---|---|
| NJ UI/WF (0.425%) | 0.425% of wages up to $44,800 |
| NJ disability (0.19%) | 0.19% of wages up to $171,100 |
| NJ family leave (0.23%) | 0.23% of wages up to $171,100 |
| Minimum wage (2026) | $15.92 an hour ($15.23 for seasonal workers and employers with fewer than 6 employees) |
2026 New Jersey income tax brackets (single filers)
| Taxable income | Rate |
|---|---|
| $0 – $19,999 | 1.4% |
| $20,000 – $34,999 | 1.75% |
| $35,000 – $39,999 | 3.5% |
| $40,000 – $74,999 | 5.525% |
| $75,000 – $499,999 | 6.37% |
| $500,000 – $999,999 | 8.97% |
| $1,000,000 and up | 10.75% |
Example: a $107,800 salary in New Jersey
The median household income in New Jersey is about $107,797 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $4,146.15 |
|---|---|
| Federal income tax | −$572.54 |
| Social Security | −$257.06 |
| Medicare | −$60.12 |
| New Jersey income tax | −$179.88 |
| NJ UI/WF (0.425%) | −$7.32 |
| NJ disability (0.19%) | −$7.88 |
| NJ family leave (0.23%) | −$9.54 |
| Take-home pay | $3,051.82 |
That's $79,347 a year in take-home pay, or 26.4% of gross pay going to taxes.
Take-home pay by salary in New Jersey
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,280.75 | $33,300 | $1,021 | 16.8% |
| $60,000 | $1,853.09 | $48,180 | $2,210 | 19.7% |
| $80,000 | $2,372.21 | $61,678 | $3,432 | 22.9% |
| $100,000 | $2,861.14 | $74,390 | $4,790 | 25.6% |
| $150,000 | $4,061.75 | $105,606 | $8,185 | 29.6% |
| $200,000 | $5,287.23 | $137,468 | $11,459 | 31.3% |
What changed for 2026
- The employee disability insurance (TDI) rate fell from 0.23% to 0.19%, and family leave insurance (FLI) fell from 0.33% to 0.23%. Both apply to wages up to $171,100, up from $165,400.
- The combined unemployment and workforce contribution stayed at 0.425%, but the wage base it applies to rose from $43,300 to $44,800.
- The minimum wage rose from $15.49 to $15.92 for most employers, and from $14.53 to $15.23 for seasonal and small employers. It's scheduled to reach $16.48 (most employers) and $16.25 (seasonal and small) on January 1, 2027.
New Jersey pay rules worth knowing
- Most employers must pay at least twice a month on regular paydays set in advance. Some executive, supervisory and other special classes of employees may be paid monthly.
- When you leave a job, whether you quit or are fired, your employer can wait until the next regular payday for that pay period to pay your final wages.
The four New Jersey lines on your pay stub
New Jersey takes more separate deductions than most states, though most are small:
- Income tax, at the progressive rates shown above. The rate schedule in use for 2026 is the one in effect since 2020.
- UI/WF, the employee share of unemployment insurance (0.3825%) and workforce development (0.0425%), together 0.425% of wages up to $44,800.
- TDI, temporary disability insurance, 0.19% of wages up to $171,100.
- FLI, family leave insurance, 0.23% of wages up to $171,100.
The calculator includes all four. Because each contribution has its own cap, your take-home pay rises slightly once you pass $44,800 in wages for the year, and again after $171,100. High earners see the effect most in the last paychecks of the year.
Why the 2026 contribution cuts matter
Lower TDI and FLI rates took effect on January 1, 2026. Compared with 2025, someone earning $80,000 pays $336 in combined TDI and FLI for 2026, down from $448, a saving of $112. For anyone earning $171,100 or more, the saving is about $208 ($719 instead of $926). It’s not a large number, but it came to you automatically, with nothing to file.
New Jersey’s brackets differ by filing status
New Jersey’s brackets for married couples filing jointly and heads of household are not simply double the single brackets. They include an extra 2.45% bracket that single filers don’t have. So two people with the same income can see noticeably different New Jersey tax depending on filing status. If you’re married, try both statuses in the calculator to see how your W-4 and New Jersey NJ-W4 choices change take-home pay.
Working in New York or Pennsylvania
- New York. New York State taxes the wages you earn there as a nonresident, and New Jersey gives you a credit for that tax on your New Jersey return. New York City’s resident tax doesn’t apply to you.
- Pennsylvania. If you live in New Jersey and work in Pennsylvania, the reciprocal agreement means Pennsylvania doesn’t tax your wages; New Jersey does. Philadelphia’s wage tax is the exception (see the FAQ).
Planning tools
The income tax calculator estimates your full-year federal tax, and the salary calculator converts an hourly wage to annual pay for comparing offers. If you shop across the state line, the sales tax calculator shows what a purchase costs at different rates.
Estimates only. Your employer’s payroll system, your W-4 and NJ-W4 determine your actual paycheck.
Sources
- NJ Department of Labor: Minimum wage chart
- NJ Department of Labor: Wage and Hour Compliance
- NJ Department of Labor: Wage and Hour FAQs for workers
- NJ Department of Labor: Contribution rates and wage bases
- NJ Division of Taxation: Tax rate tables
- NJ Division of Taxation: New Jersey–Pennsylvania reciprocal agreement
- NJ Division of Taxation: GIT-3W, Credit for Taxes Paid to Other Jurisdictions
- Jersey City: Taxes
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- nj.gov
- nj.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
I live in Pennsylvania and work in New Jersey. Do I pay New Jersey income tax?
No. Under the New Jersey–Pennsylvania reciprocal agreement, pay that Pennsylvania residents earn in New Jersey isn't subject to New Jersey income tax. The agreement covers wages and other compensation only, not other New Jersey income such as rental income.
I live in New Jersey and work in Philadelphia. Does reciprocity cover the city wage tax?
No. The reciprocal agreement doesn't apply to Philadelphia's wage tax or any other municipal tax, so Philadelphia's nonresident wage tax is still withheld. You can generally claim a credit for it on your New Jersey return.
What is the most I'll pay in New Jersey payroll contributions in 2026?
$909.02 in total. That's $190.40 for unemployment and workforce development (0.425% of $44,800), $325.09 for disability (0.19% of $171,100) and $393.53 for family leave (0.23% of $171,100). Once your wages pass each cap, that deduction stops for the rest of the year.
Does Jersey City's payroll tax come out of my paycheck?
No. Jersey City's 1% payroll tax is charged to employers on their gross payroll, and the city's rules say employers can't deduct or withhold it from employee wages.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.