New Jersey Paycheck Calculator

New Jersey has a seven-bracket income tax structure with rates from 1.4% to 10.75%, with the top rate applying to income over $1 million. Most middle-class New Jersey workers ($75,000–$500,000) face marginal rates of 6.37%–8.97%. New Jersey has some of the highest effective combined tax burdens when state income tax is layered onto already-high federal and property tax obligations.

New Jersey also collects several employee-side payroll deductions beyond income tax: State Disability Insurance (SDI) at 0.26% of wages, Unemployment Insurance (UI) employee portion at 0.395% on wages up to $43,300, Workforce Development Partnership Fund (WDF) at 0.0425%, and Family Leave Insurance (FLI) at 0.09%. Combined, these smaller deductions add approximately 0.8% to total payroll withholding.

New Jersey workers who commute into New York City owe New York State income tax on NYC-earned wages but not the NYC city income tax (non-residents). New Jersey and New York have a reciprocal agreement allowing NJ residents to pay only NJ income tax on wages earned in NY.