2025 Tax Rates & Wage Bases
This page summarizes the **federal** and **New Jersey** items that affect your paycheck in 2025: standard deduction, federal brackets (reference), FICA and Additional Medicare, and NJ income tax & payroll programs. Our calculator applies these in the exact order explained on the Methodology page.
Standard deduction (2025)
| Filing status | Amount (2025) | Notes |
|---|---|---|
| Single | $15,000 | Inflation-adjusted from 2024. |
| Married filing jointly | $30,000 | Joint return. |
| Head of household | $22,500 | Higher than single. |
Per the IRS’s 2025 inflation adjustments announcement. We use these amounts when modeling W-4 Step 4(b) “Deductions,” if supplied. Source.
Federal tax brackets (reference)
The IRS publishes the full 2025 bracket thresholds by filing status. Our calculator doesn’t use the return-level brackets directly; it uses the **IRS Publication 15-T (2025) percentage method tables** designed for per-paycheck withholding. For the exact 2025 bracket thresholds (e.g., where the **37%** bracket begins), see the IRS pages below.
FICA & Additional Medicare (with wage bases)
New Jersey income tax overview (2025)
New Jersey uses a **graduated state income tax** with rates generally ranging from **1.40% to 10.75%**, depending on filing status and taxable income. Employers withhold using the state’s **percentage method tables** per pay frequency (weekly, biweekly, semimonthly, monthly).
- Uses the **official NJ per-period percentage tables** for your chosen pay schedule.
- Honors NJ allowances/adjustments as published for the tables.
- Displays **NJ income tax** separately from the payroll programs below.
Reference: NJ Division of Taxation withholding/tables and rate guidance. Source.
NJ employee payroll programs (2025)
These are separate from NJ income tax and appear as distinct lines on your paycheck. We stop each one automatically when its annual wage base is reached (using your YTD input).
| Program | Employee rate (2025) | Wage base (2025) | Max employee $ | Notes |
|---|---|---|---|---|
| UI (Unemployment Insurance) | 0.3825% | $43,300 | $165.62 | Employee portion only; separate employer rates apply. |
| WF/SWF (Workforce Development) | 0.0425% | $43,300 | $18.40 | Small employee contribution. |
| TDI (Temporary Disability) | 0.23% | $165,400 | $380.42 | Employee contributions required in 2025. |
| FLI (Family Leave Insurance) | 0.33% | $165,400 | $545.82 | Employees contribute; employers don’t contribute to FLI. |
Sources: NJ DOL & program pages (TDI/FLI) and rate information. Rate info, TDI/FLI employer portal.
Withholding notes (how this affects your paycheck)
- Per-pay vs. annual brackets: Federal **withholding** uses IRS Pub. 15-T’s percentage method (per-period math), not the return-level bracket ladder. Your **actual tax** is reconciled when you file.
- Additional Medicare: The +0.9% applies only to the portion of wages above $200,000 (employee threshold). Not split with employer.
- Social Security cap: After your year-to-date wages reach **$176,100**, OASDI stops—your net pay increases for the rest of the year.
- NJ payroll programs: Each stops once its wage base is hit (UI/WF at **$43,300**; TDI/FLI at **$165,400**), boosting net pay later in the year.
- Bonuses & supplemental pay: Employers may use the IRS **percentage** or **aggregate** method; withholding on bonus checks can look high in that period but evens out at filing.
Official sources
- IRS: 2025 inflation adjustments (standard deduction, thresholds)
- IRS Publication 505 (2025) — includes 2025 **rate schedules** (PDF: direct link)
- SSA: 2025 OASDI wage base — $176,100
- NJ Division of Taxation: Withholding tables & rates
- NJ DOL: Rate information & wage bases and TDI/FLI employer portal