Estimate your take-home pay in New Jersey. The state levies a graduated income tax that tops out at 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.
Disclaimer: All figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Tax rates, brackets, and withholding rules change and vary by locality and personal circumstances. Verify current rates with the New Jersey Department of Revenue or the IRS, and consult a qualified tax professional before making financial decisions.
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's Graduated Brackets 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.
How New Jersey's Income Tax Compares Nationally
New Jersey uses a graduated income tax — 1.4% to 10.75% across 7 brackets — so higher slices of income are taxed at higher rates rather than one flat percentage.
Its 10.75% top rate is the 4th-highest nationally among the 42 states and jurisdictions that tax wages, above the median top rate of 5.54%.
For comparison, nearby states line up like this: Delaware (top rate 6.6%); New York (top rate 10.9%); Pennsylvania (top rate 3.07%).