New Jersey Paycheck Calculator
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
- $15.92/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 $15.92 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.
Where You Live vs. Where You Work in New Jersey
New Jersey has income tax reciprocity agreements with Pennsylvania. If you live in New Jersey and work in one of those jurisdictions — or the other way round — your wages are taxed only by your state of residence, provided you file the non-residence certificate your employer's state requires. Without that form on file, the work state will withhold anyway and you will have to claim it back.
Newark levies a payroll tax, but it is paid by the employer rather than withheld from employee wages. Local withholding is separate from the state line on your pay stub, so check it explicitly if you move house or change work location without changing employer.
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 5.25%.
For comparison, nearby states line up like this: Delaware (top rate 6.6%); New York (top rate 10.9%); Pennsylvania (top rate 3.07%).
Frequently Asked Questions
Does New Jersey have a state income tax? + −
Yes. New Jersey has a state income tax with a top rate of 10.75%. Your effective rate depends on your filing status and income brackets. New Jersey has the highest effective property tax rates in the nation.
What is the sales tax rate in New Jersey? + −
The New Jersey state sales tax rate is 6.625%. When you include the average local rate of 0%, the combined rate is approximately 6.63%. Actual rates vary by city and county.
How do I calculate my New Jersey take-home pay? + −
Start with your gross salary, subtract federal income tax (based on your W-4 and tax bracket), subtract FICA taxes (7.65% — 6.2% Social Security up to the wage base + 1.45% Medicare), then subtract New Jersey state income tax at your marginal rate. The remainder is your net take-home pay. Our calculator does this automatically.
What payroll deductions apply in New Jersey? + −
All New Jersey employees pay federal income tax and FICA (Social Security 6.2% + Medicare 1.45%). State income tax is also withheld based on New Jersey's brackets. Additional deductions may include 401(k) contributions, health insurance premiums, and any local taxes.
How often are New Jersey employees typically paid? + −
Most New Jersey employees are paid biweekly (26 paychecks per year) or semi-monthly (24 paychecks). Some employers use weekly or monthly pay schedules. Our calculator supports all frequencies — enter your gross pay for one period and it calculates your net pay after all applicable New Jersey taxes and deductions.
What are the New Jersey income tax brackets? + −
New Jersey uses a graduated structure: 1.4% to 10.75% across 7 brackets. Only the income that falls within each bracket is taxed at that bracket's rate, so your effective rate is always lower than the 10.75% top rate.
Is New Jersey a high income tax state? + −
New Jersey's top rate of 10.75% ranks 4th-highest among the 42 states and jurisdictions with a wage income tax, above the national median top rate of 5.25%. Because the brackets are graduated (1.4% to 10.75% across 7 brackets), most filers pay an effective rate well below the headline number.
Does New Jersey have income tax reciprocity with other states? + −
Yes — with Pennsylvania. Under those agreements your wages are taxed only where you live, not where you work. You have to give your employer the non-residence withholding certificate for the work state; if you do not, that state withholds its tax and you have to file a return there to get it refunded.
Are there local income taxes in New Jersey? + −
Yes. Newark levies a payroll tax, but it is paid by the employer rather than withheld from employee wages. That withholding is separate from the 10.75% state tax line and from federal tax and FICA, so your total deduction can be noticeably higher than the state rate alone suggests.
How do nearby states' income taxes compare with New Jersey's? + −
Delaware (top rate 6.6%); New York (top rate 10.9%); Pennsylvania (top rate 3.07%). 1 of the 3 nearby states listed has a higher top rate than New Jersey's 10.75%.
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