If you live or work in New Jersey, your take-home pay — the amount you actually receive after taxes and deductions — can look very different from your gross salary.
Knowing how to calculate it helps you budget smarter, plan savings, and understand where every dollar goes.
Here’s a clear breakdown of how to figure out your New Jersey paycheck after taxes, along with examples and easy tools to double-check your numbers.
What Is Take-Home Pay?
Your take-home pay (or net pay) is what’s left from your gross earnings after all required taxes and deductions.
It includes both federal and state withholdings, as well as things like Social Security, Medicare, and benefits contributions.
Think of it like this:
Gross Pay – Taxes – Deductions = Take-Home Pay
You can estimate your paycheck easily using the New Jersey paycheck calculator, but let’s walk through the process step by step so you understand exactly what’s happening behind the scenes.
Step One: Find Your Gross Pay
Your gross pay is your total earnings before any deductions.
For hourly employees, it’s your hourly rate multiplied by hours worked.
For salaried workers, divide your annual salary by the number of pay periods (e.g., 26 if you’re paid biweekly).
If you earn overtime, bonuses, or commissions, those will add to your gross income — and may be taxed differently depending on your situation.
Step Two: Subtract Federal Taxes
Every paycheck in the U.S. includes federal income tax withholding.
Your employer calculates this using your W-4 form, which includes:
- Filing status (single, married, or head of household)
- Number of dependents
- Any additional withholding you’ve requested
Federal taxes are progressive, so higher portions of your income are taxed at higher rates. For 2025, rates range from 10% to 37%, but most New Jersey employees fall between 12%–22%.
Step Three: Subtract FICA Taxes (Social Security and Medicare)
FICA taxes fund federal social insurance programs.
| Tax Type | Employee Rate | Purpose |
|---|---|---|
| Social Security | 6.2% | Retirement and disability benefits |
| Medicare | 1.45% | Health insurance for retirees |
If your income exceeds $200,000, you’ll also pay an additional 0.9% Medicare surtax.
Step Four: Subtract New Jersey State Income Tax
New Jersey has a progressive state income tax, with rates ranging from 1.4% to 10.75%, depending on your income bracket.
Here’s a simplified look at the 2025 state tax brackets for single filers:
| Income Range | Tax Rate |
|---|---|
| Up to $20,000 | 1.4% |
| $20,001–$35,000 | 1.75% |
| $35,001–$40,000 | 3.5% |
| $40,001–$75,000 | 5.525% |
| $75,001–$500,000 | 6.37% |
| $500,001–$1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
Your NJ-W4 form tells your employer how much to withhold from each paycheck. You can review or update it anytime to better match your financial situation.
To get a precise estimate, check out the New Jersey gross-to-net paycheck calculator, which automatically applies state tax rates and insurance deductions.
Step Five: Include New Jersey-Specific Deductions
New Jersey has several unique payroll deductions that other states don’t. These help fund worker benefits and protections.
| Deduction | 2025 Employee Rate | Purpose |
|---|---|---|
| State Unemployment Insurance (SUI) | 0.425% (on first $42,300) | Unemployment benefits |
| Temporary Disability Insurance (TDI) | 0.47% | Wage replacement for illness/injury |
| Family Leave Insurance (FLI) | 0.06% | Paid family leave |
These deductions are small, but they’re mandatory for most NJ employees.
Step Six: Subtract Benefits and Pre-Tax Deductions
If you contribute to health insurance, retirement plans, or savings accounts, those amounts are typically deducted before taxes.
Common pre-tax deductions include:
- Health, dental, or vision insurance premiums
- 401(k) or 403(b) retirement contributions
- Flexible Spending Accounts (FSA) or Health Savings Accounts (HSA)
Pre-tax benefits reduce your taxable income, which can slightly increase your take-home pay.
You can compare scenarios with and without these deductions using the salary paycheck calculator.
Step Seven: Find Your Net (Take-Home) Pay
Once you subtract all taxes and deductions, the remaining amount is your net pay — what actually lands in your bank account.
Example: $70,000 Annual Salary (Biweekly Pay)
| Category | Amount | Notes |
|---|---|---|
| Gross Pay | $2,692 | $70,000 ÷ 26 pay periods |
| Federal Tax | $330 | Approx. 12% rate |
| FICA | $206 | Social Security + Medicare |
| NJ State Income Tax | $108 | Effective rate ~4% |
| NJ SUI/TDI/FLI | $13 | State insurance deductions |
| Health + 401(k) | $160 | Sample pre-tax benefits |
| Take-Home Pay | ≈ $1,875 | Actual paycheck amount |
These numbers will vary depending on your NJ-W4, benefits, and pay frequency — but they give a realistic snapshot.
Special Notes for Contractors and Freelancers
If you’re self-employed or work on a 1099 basis, your clients won’t withhold taxes for you.
That means you’re responsible for paying:
- Federal income tax
- Self-employment tax (15.3%) for Social Security and Medicare
- New Jersey state income tax
The New Jersey contractor paycheck calculator can help estimate your take-home pay after accounting for these obligations.
Quick Tips to Boost Your Take-Home Pay
- Review your NJ-W4: Adjust allowances or add extra withholding if your taxes are off.
- Use pre-tax benefits: Contributions to health insurance or retirement reduce taxable income.
- Track overtime and bonuses: They may change your withholding temporarily.
- Compare pay frequency: Biweekly and monthly paychecks can slightly affect withholding patterns.
Frequently Asked Questions
What percentage of my paycheck goes to taxes in New Jersey?
Most employees see between 20% and 30% withheld in total (federal, state, and insurance).
Do New Jersey employees pay local city tax?
No, there are no municipal income taxes in New Jersey.
Can I adjust my state tax withholding?
Yes, by updating your NJ-W4 form with your employer.
How do pre-tax benefits affect my paycheck?
They reduce your taxable income, helping you keep more of your earnings.
How can I calculate my take-home pay quickly?
Use the New Jersey paycheck calculator for an instant, accurate breakdown of your estimated net pay.
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Juanita is the creator behind njpaycheckcalculator.org, dedicated to providing accurate and easy-to-use paycheck calculation tools for New Jersey residents. With a strong focus on clarity and reliability, she helps users understand their paychecks and tax deductions with confidence. Juanita is passionate about simplifying complex financial calculations, empowering users to make informed decisions about their income and budgeting.