How Much is New Jersey SDI Tax on My Paycheck?
If you work in New Jersey, understanding paycheck deductions is essential for accurate budgeting and financial planning. One common deduction is New Jersey State Disability Insurance (SDI) tax, which funds temporary disability benefits for employees who cannot work due to illness, injury, or pregnancy. This guide answers the key question: how much is New Jersey SDI tax on my paycheck?
Who This Guide is For
- Hourly and salaried employees in New Jersey
- Workers trying to estimate take-home pay
- Anyone preparing for temporary disability or maternity leave
Knowing your SDI contributions ensures your paycheck is correct and that you qualify for benefits if needed.
What is New Jersey SDI?
New Jersey SDI, also called Temporary Disability Insurance (TDI), provides partial wage replacement for employees who are temporarily unable to work. Contributions are automatically withheld from paychecks, making you eligible for state benefits without extra effort.
Current New Jersey SDI Tax Rate
As of 2025, the SDI tax rate is:
- Employee rate: 0.23% of gross wages
- Maximum taxable wage base: $165,400 annually
- Maximum annual contribution: $380.42
Employer contributions vary between 0.10% and 0.75% of the taxable wage base.
How to Calculate SDI Tax on Your Paycheck
- Multiply your gross pay by 0.23% (0.0023).
- Ensure your year-to-date wages have not exceeded $165,400.
Example 1 – Weekly Wage $1,500:
$1,500 × 0.0023 = $3.45 withheld for SDI
Example 2 – Weekly Wage $3,000:
$3,000 × 0.0023 = $6.90 withheld for SDI
These deductions are automatically applied by your employer.
Real-World Use Cases
- Hourly Worker: Calculates SDI to understand net pay for budgeting.
- Pregnant Employee: Ensures eligibility for partial wage replacement during maternity leave.
- Remote Employee: Confirms deductions even when working from multiple states.
FAQ – New Jersey SDI Tax
1. How do I calculate SDI tax on my paycheck?
Multiply your gross pay by 0.23%, up to the $165,400 annual wage cap.
2. What is the maximum SDI contribution in New Jersey?
For 2025, the maximum annual employee contribution is $380.42.
3. Can SDI contributions be deducted from state income taxes?
No, SDI contributions are not subject to New Jersey state income tax.
4. Why is SDI important for employees?
It provides temporary wage replacement for illness, injury, or pregnancy, protecting your income during unexpected time off.
5. How does my employer contribute to SDI?
Employers pay 0.10% to 0.75% of the taxable wage base, separate from employee deductions.
6. When do SDI deductions stop for the year?
Once your wages exceed $165,400, no further SDI is withheld.
7. Can I estimate SDI for multiple pay periods?
Yes, simply multiply your gross pay per period by 0.23% until you reach the yearly wage cap.
Key Takeaways
- New Jersey SDI is 0.23% of wages, capped at $165,400 annually.
- Automatic deductions ensure eligibility for temporary disability benefits.
- Understanding SDI contributions helps workers plan budgets and prepare for leave.
Accurately knowing how much is New Jersey SDI tax on my paycheck ensures you are financially prepared and covered when unexpected health events occur.
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.