Estimate your take-home pay in New Jersey for 2026. The state levies income tax with a top rate of 10.75% (1.4% to 10.75% across 7 brackets). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
New Jersey Tax Snapshot
- State Income Tax
- 10.75% top rate
- Sales Tax (state + local avg)
- 6.63%
- Avg Property Tax Rate
- 2.23%
- Median Home Value
- $433,600
- State Minimum Wage
- $15.49/hr
Did You Know?
New Jersey has the highest effective property tax rates in the nation.
How New Jersey Taxes Affect Your Paycheck
When you earn a paycheck in New Jersey, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on 1.4% to 10.75% across 7 brackets. The state minimum wage is $15.49 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 2.23% property tax rate on homes valued around $433,600.
New Jersey also levies a combined state and average local sales tax of 6.63%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.