If you work in New Jersey, one of the first payroll forms you’ll complete is the Form NJ-W4, the state’s employee withholding allowance certificate.
This form tells your employer how much New Jersey state income tax to take out of each paycheck — and getting it right ensures you’re not over- or under-withheld throughout the year.
Let’s go through exactly how to fill it out, what each line means, and how your choices affect your take-home pay.
What Is the NJ-W4 and Why It Matters for Your Paycheck
The New Jersey NJ-W4 determines how much state tax is withheld from your wages. Your employer uses this information along with your pay frequency to calculate state withholding.
Choosing the right filing status and number of allowances makes sure your paycheck reflects your true earnings after taxes.
The form directly affects:
- your take-home pay,
- your state tax refund or balance due, and
- how accurate your year-end paycheck tax withholding is.
If you’re unsure how state taxes affect your overall income, explore our New Jersey income tax bracket calculator to see current rates by income level.
Step-by-Step: How to Complete the NJ-W4 Form
You can download the official form from the New Jersey Division of Taxation.
1. Personal Information (Line 1)
Write your full legal name, address, and Social Security Number. This identifies you to your employer and the state.
2. Filing Status (Line 2)
Select the filing status that matches your situation:
- Single
- Married/Civil Union Couple (Joint)
- Married/Civil Union Partner (Separate)
- Head of Household
- Qualifying Widow(er)/Surviving Civil Union Partner
If both spouses work and your combined wages exceed $50,000, you’ll need the wage chart in the NJ-W4 instructions to choose the correct letter code.
3. Wage Chart Code (Line 3)
This line helps adjust withholding for multiple incomes.
Find your household wage range in the chart and enter the corresponding letter code (A, B, C, etc.). Skipping this step can result in incorrect withholding.
4. Number of Allowances (Line 4)
Each allowance reduces how much tax is withheld.
- More allowances = less tax withheld (larger paycheck).
- Fewer allowances = more tax withheld (smaller paycheck, but possible refund later).
If you’re unsure, start conservatively with 0 or 1 allowance and adjust later.
5. Additional Withholding (Line 5)
If you prefer a larger cushion at tax time, you can ask your employer to withhold an extra dollar amount each pay period.
6. Claiming “Exempt” (Line 6)
If your income is low enough that you expect to owe no New Jersey income tax, you may write “EXEMPT.”
This must be renewed every year and is only valid if you truly meet the exemption criteria.
7. Signature and Date (Line 7)
Sign and date the form. Submit it to your employer, not the state.
How the NJ-W4 Affects Your Paycheck
The number of allowances and your filing status change your withholding rate and thus your net pay. Here’s how that difference looks for typical New Jersey incomes:
| Annual Salary | Pay Frequency | Allowances Claimed | Approx. NJ Tax Withheld Per Paycheck |
|---|---|---|---|
| $45,000 | Biweekly | 0 | $95–$110 |
| $45,000 | Biweekly | 2 | $60–$75 |
| $80,000 | Monthly | 1 | $340–$370 |
| $120,000 | Monthly | 0 | $600–$640 |
(Estimates based on 2025 NJ state tax tables for single filers.)
To understand how other deductions and contributions shape your take-home pay, check out our New Jersey payroll tax calculator or the salary paycheck calculator.
When to Update or Resubmit Your NJ-W4
You should update your form whenever your personal or financial situation changes:
- Starting a new job or changing employers
- Marriage, divorce, or civil union changes
- Adding or losing dependents
- Getting a raise, bonus, or second job
- Moving into or out of New Jersey
- Changing your exempt status
Keeping your form current avoids unexpected tax bills at filing time.
Common NJ-W4 Mistakes to Avoid
- Claiming too many allowances without confirming withholdings
- Forgetting to apply the wage-chart code when both spouses work
- Not submitting a new form each year if claiming “Exempt”
- Ignoring your pay stub after major changes in pay or hours
Check your first few paychecks after updating your NJ-W4 to make sure your state tax withholding looks correct.
Example Scenarios
Single employee earning $60,000 per year
- Claims 1 allowance
- Biweekly pay → roughly $140 in NJ tax withheld each check
Married couple earning $120,000 combined
- Each claims fewer allowances and uses wage chart code “C” for accuracy
Remote worker living in Pennsylvania
- Still completes NJ-W4 unless covered by a reciprocal agreement with PA
Frequently Asked Questions
What happens if I don’t submit an NJ-W4?
Your employer must withhold at the highest rate (single, 0 allowances) until you provide the form.
Can I update my NJ-W4 anytime?
Yes. You may file a new form with your employer whenever your circumstances change.
Do remote workers need an NJ-W4?
Yes, if your employer withholds NJ state taxes from your paycheck.
How often should I review my form?
At least once a year or whenever you experience major life or income changes.
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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.