If you work in New Jersey, you’ve probably noticed that your paycheck includes a deduction for state income tax. But what exactly is the New Jersey state income tax rate, and how much will it reduce your take-home pay each pay period?
Let’s break it down in simple terms so you know what to expect on your pay stub—and how to estimate your actual net pay.
Understanding How State Income Tax Works in New Jersey
New Jersey uses a progressive income tax system, meaning higher earners pay a higher percentage of their income in state tax.
The rates apply to taxable income, not your total gross pay, after federal deductions and certain exemptions.
Your employer withholds this tax from every paycheck and sends it to the New Jersey Division of Taxation. The amount withheld depends on your annual salary, pay frequency, and filing status.
If you want to see how much that looks like for your situation, try a gross-to-net paycheck calculator such as the New Jersey Paycheck Calculator.
2025 New Jersey State Income Tax Rates
Here are the current 2025 tax brackets for single filers in New Jersey:
| Taxable 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% |
For married couples filing jointly, the income brackets are roughly double those amounts.
These rates haven’t changed significantly from 2024, but it’s smart to check annually because New Jersey occasionally adjusts thresholds.
How the Tax Rate Affects Your Paycheck
The state income tax rate applies to your taxable income per pay period, not your entire annual salary at once.
Here’s a quick example of how it plays out for a biweekly paycheck.
Example: $60,000 Annual Salary (Single Filer)
- Gross per pay period: $60,000 ÷ 26 = $2,307.69
- NJ state income tax (≈ 5.5% effective rate): ~$127 per check
- FICA and federal taxes come on top of that, plus small state deductions for UI, DI, and FLI.
That means your take-home pay after all taxes might be about $1,700–$1,750 per paycheck, depending on benefits and other deductions.
To get a detailed number for your exact income and pay frequency, check the income tax bracket tool on your site: New Jersey Income Tax Bracket Calculator.
Other Payroll Deductions in New Jersey
Alongside state income tax, every paycheck in New Jersey includes small mandatory contributions that fund statewide programs.
These are separate from income tax but still affect your net pay:
| Deduction | Typical 2025 Rate | Purpose |
|---|---|---|
| Unemployment Insurance (UI) | ~0.3825% | Supports workers who lose jobs |
| Temporary Disability Insurance (DI) | ~0.47% | Covers illness or off-the-job injury |
| Family Leave Insurance (FLI) | ~0.09% | Paid leave for family care or new child |
| Workforce Development Fund | ~0.0425% | Job training programs |
Even though these are small percentages, they’re part of your New Jersey paycheck deductions and explain why your take-home pay is less than your gross pay.
If you want to see how these state-specific deductions combine with income tax, use the Paycheck Deductions Calculator.
Tips to Understand and Manage Withholding
- Review your W-4 and NJ-W4: You can adjust how much is withheld from each paycheck if you expect a large refund or owe taxes at year-end.
- Use pre-tax benefits: Contributions to retirement plans (401(k), 403(b)) or health insurance can lower your taxable income for both federal and state taxes.
- Check your pay frequency: Whether you’re paid weekly or biweekly doesn’t change the total tax owed annually, but smaller, more frequent paychecks may feel different in budgeting.
Common Questions About New Jersey Income Tax on Paychecks
1. What is the lowest and highest state income tax rate in New Jersey?
In 2025, the rates range from 1.4% to 10.75%, depending on your income level.
2. Does Trenton or any New Jersey city have a separate local tax?
No. Unlike some other states, New Jersey doesn’t impose city or county income taxes.
3. How often is state income tax withheld from paychecks?
Typically each pay period—weekly, biweekly, or monthly—depending on your employer’s payroll schedule.
4. Can I estimate my state tax withholding online?
Yes. You can use your New Jersey Paycheck Calculator to see an estimated breakdown of all deductions.
5. Are bonuses or overtime taxed differently by New Jersey?
Bonuses are taxed the same as regular wages for state income tax purposes, though your federal withholding may differ.
“Check the latest New Jersey Income Tax Bracket Calculator to see how state rates apply to your paycheck.”
“Use our New Jersey Payroll Tax Calculator to estimate your total deductions including state taxes.”
“Understand How NJ-W4 Impacts Your Withholding and helps adjust your tax rate.”
“Estimate your actual take-home pay using the New Jersey Gross-to-Net Paycheck Calculator.”
“Find out What Deductions Come Out of a New Jersey Paycheck besides income tax.”
“Learn more about Federal Tax Withholding in New Jersey and how it affects your total paycheck.”
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.