If you work in New Jersey, understanding how your paycheck is calculated helps you take control of your finances.
Your paycheck isn’t just your hourly rate or salary — it’s what remains after taxes, insurance, and benefit deductions.
Here’s how to figure out your New Jersey paycheck in clear, simple terms.
Start With Your Gross Pay
Everything begins with your gross pay, which is the total amount you earn before deductions.
Hourly employees multiply their hourly rate by hours worked per pay period, while salaried employees divide their annual salary by the number of pay periods, such as 26 for biweekly pay.
If you receive overtime or bonuses, keep those separate because they are often taxed differently.
Federal Income Tax
Your employer withholds federal income tax based on your W-4 form, which reflects your filing status and the number of dependents you claim.
The more dependents or credits you list, the less tax is withheld.
Federal tax brackets in 2025 range from 10% to 37%, but only a portion of your income is taxed at each level, so the effective rate is usually lower.
FICA Taxes (Social Security and Medicare)
These two payroll taxes are required for everyone who works in the U.S.
They fund national programs like retirement and health coverage.
| Tax Type | Employee Rate | Purpose |
|---|---|---|
| Social Security | 6.2% | Supports retirement and disability benefits |
| Medicare | 1.45% | Funds healthcare for retirees |
If your annual income exceeds $200,000, an additional 0.9% Medicare surtax applies.
Both you and your employer pay these amounts, though only your portion shows on your paycheck.
New Jersey State Income Tax
New Jersey’s income tax is progressive, meaning higher earnings are taxed at higher rates.
Rates range from 1.4% to 10.75% depending on income and filing status.
The amount your employer withholds is determined by your NJ-W4 form, which includes your filing status, dependents, and any additional withholding you choose.
For a precise estimate of your after-tax income, try the New Jersey paycheck calculator — it automatically uses current 2025 tax brackets.
New Jersey-Specific Payroll Deductions
In addition to state and federal taxes, New Jersey has unique payroll programs that most other states don’t.
These programs protect workers and families by providing paid leave and insurance benefits.
| Deduction | 2025 Rate | Purpose |
|---|---|---|
| State Unemployment Insurance (SUI) | 0.425% on the first $42,300 | Unemployment benefits for workers |
| Temporary Disability Insurance (TDI) | 0.47% | Short-term wage replacement for illness or injury |
| Family Leave Insurance (FLI) | 0.06% | Paid time off to care for family or bond with a new child |
These may seem small individually, but together they play a key role in your paycheck calculation.
Pre-Tax and Optional Deductions
Pre-tax deductions reduce your taxable income before taxes are applied, which can increase your take-home pay.
Common examples include:
- Health, dental, and vision insurance premiums
- Retirement contributions such as a 401(k) or 403(b)
- Flexible Spending Accounts (FSA) or Health Savings Accounts (HSA)
- Union dues or voluntary benefit plans
You can compare how these affect your take-home pay using the salary paycheck calculator.
Calculating Net (Take-Home) Pay
After all taxes and deductions are subtracted, what remains is your net pay — the amount deposited into your bank account.
Here’s a realistic example for a New Jersey worker earning $70,000 a year, paid biweekly:
| Category | Approx. Amount | Notes |
|---|---|---|
| Gross Pay | $2,692 | Annual salary divided by 26 pay periods |
| Federal Income Tax | $330 | Estimated based on 2025 IRS tables |
| FICA (SS + Medicare) | $206 | Standard 7.65% payroll deduction |
| NJ State Tax | $108 | Mid-range state rate |
| SUI, TDI, FLI | $13 | Combined state programs |
| Health + 401(k) | $160 | Typical pre-tax benefits |
| Net Pay | ≈ $1,875 | Take-home amount |
Actual figures vary depending on your NJ-W4, benefits, and pay frequency.
Adjusting Your Withholding
If your paycheck feels too low or if you often owe taxes at the end of the year, review your NJ-W4 form.
You can increase or decrease your withholding, depending on your financial goals.
It’s smart to check your pay stub regularly to ensure your employer is using the right deductions.
Contractors, Bonuses, and Overtime
Independent Contractors
If you’re a 1099 contractor or freelancer, taxes aren’t automatically withheld.
You must set aside money for:
- Federal income tax
- Self-employment tax (15.3%)
- New Jersey state income tax
To project your take-home earnings, use the New Jersey contractor paycheck calculator.
Bonuses and Overtime
Bonuses are taxed at a flat federal rate of 22%, plus state tax.
Overtime is added to gross income and taxed at your normal rate, which may bump you into a higher bracket temporarily.
How to Calculate a New Jersey Paycheck
Begin with your gross income, subtract federal tax, FICA, and New Jersey state tax, then account for state insurance programs and any pre-tax benefits.
The remaining balance is your take-home pay, also called net pay.
For the fastest and most accurate estimate, use the NJ Paycheck Calculator, which updates automatically with 2025 rates and deductions.
Frequently Asked Questions
What taxes come out of a New Jersey paycheck?
Federal income tax, Social Security, Medicare, New Jersey state income tax, and state insurance deductions like SUI, TDI, and FLI.
Do contractors and freelancers have taxes withheld automatically?
No, independent contractors must pay self-employment and state taxes directly.
How can I increase my take-home pay?
Adjust your NJ-W4 allowances, increase pre-tax benefits, or review your deductions annually.
Are New Jersey payroll deductions different from other states?
Yes, New Jersey includes unique programs for temporary disability and paid family leave.
What’s the easiest way to check my paycheck accuracy?
Compare your current pay stub with results from a New Jersey paycheck calculator to confirm totals match expectations.
“Start with our New Jersey Paycheck Calculator to quickly estimate your earnings and deductions.”
“Use the New Jersey Payroll Tax Calculator to factor in state and federal taxes.”
“Check the New Jersey Income Tax Bracket Calculator to understand how your income level affects withholding.”
“Estimate your actual take-home pay using the New Jersey Gross-to-Net Paycheck Calculator.”
“See how NJ-W4 Selections Impact Your Paycheck for more accurate calculations.”
“Review all New Jersey Paycheck Deductions to get a clear picture of your net pay.”
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.