How to Calculate Your Take-Home Pay in New Jersey (2025 Guide)

If you’ve ever looked at your New Jersey paycheck and wondered, “What is my actual take-home pay?” you’re not alone. Understanding the difference between your salary and the money that hits your bank account is key to managing your finances. This guide is for any employee in New Jersey who wants to accurately calculate their net pay.

Your take-home pay is your gross salary minus federal taxes (Income Tax, Social Security, Medicare) and New Jersey state deductions (State Income Tax, Family Leave Insurance). Let’s break down exactly how to figure out that number.

What Gets Taken Out of a New Jersey Paycheck?

Your paycheck has several deductions, which fall into federal and state categories.

Federal Payroll Deductions

1. Federal Income Tax: This is the largest deduction for most people. The amount withheld is based on your income, filing status, and other information you provide on your federal Form W-4.
2. FICA Taxes: This is a two-part tax for Social Security and Medicare.
   • Social Security: As of 2024/2025, the rate is 6.2% on income up to $168,600.
   • Medicare: The rate is 1.45% on all your earnings.

New Jersey State Payroll Deductions

1. New Jersey State Income Tax: The Garden State has a progressive tax system. The more you earn, the higher your tax rate. Your withholdings are determined by your Form NJ-W4.
2. New Jersey Family Leave Insurance (FLI): This program provides paid leave for family reasons. The 2024/2025 rate is 0.09% of your gross wages.
3. New Jersey State Disability Insurance (SDI): This provides benefits if you can’t work due to a non-work-related injury or illness. The 2024/2025 employee contribution rate is 0%, so you likely won’t see a deduction for this.

Let’s Calculate It: Real-World New Jersey Paycheck Examples

The easiest way to understand this is to walk through it. How do you calculate take-home pay for someone living in NJ?

Example 1: Single Filer, No Pre-Tax Deductions

This scenario is for a user who asks: “What is the bi-weekly take-home pay on a $60,000 salary in New Jersey?”

• Inputs:
  • Annual Gross Salary: $60,000
  • Pay Frequency: Bi-weekly (26 paychecks per year)
  • Filing Status: Single
  • Pre-Tax Deductions: $0
• Calculation & Output:
  1. Gross Pay Per Paycheck: $60,000 / 26 = $2,307.69
  2. Deductions (Estimates):
     • Federal Income Tax: ~$215
     • Social Security (6.2%): ~$143
     • Medicare (1.45%): ~$33
     • NJ State Income Tax: ~$102
     • NJ FLI (0.09%): ~$2
  3. Estimated Take-Home Pay: ~$1,812 per paycheck

Example 2: Married Filer with 401(k) Contributions

This scenario answers a common question: “How do my 401(k) contributions affect my NJ take-home pay?”

• Inputs:
  • Annual Gross Salary: $120,000
  • Pay Frequency: Bi-weekly
  • Filing Status: Married Filing Jointly
  • Pre-Tax Deductions: 5% of salary to a 401(k)
• Calculation & Output:
  1. Gross Pay Per Paycheck: $120,000 / 26 = $4,615.38
  2. Pre-Tax 401(k) Deduction: $4,615.38 * 0.05 = $230.77
  3. Taxable Income: $4,615.38 – $230.77 = $4,384.61
  4. Deductions (Estimates based on taxable income where applicable):
     • Federal Income Tax: ~$390
     • Social Security (on gross pay): ~$286
     • Medicare (on gross pay): ~$67
     • NJ State Income Tax: ~$215
     • NJ FLI (on gross pay): ~$4
  5. Estimated Take-Home Pay: ~$3,422 per paycheck

For precise calculations tailored to your exact situation, using a reputable online tool like the paycheck calculators offered by ADP or Paychex can provide immediate and accurate results.

Common Questions About NJ Take-Home Pay

1. How can I get more take-home pay on each NJ paycheck?

You can adjust your Form W-4 to claim more allowances, which reduces withholding. However, this may mean you owe more during tax season. Contributing to pre-tax accounts like a 401(k) or HSA also lowers your taxable income, which can increase your net pay.

2. Why is my New Jersey take-home pay lower than I expected?

Beyond standard taxes, optional deductions for health insurance, dental coverage, or retirement savings reduce your net pay. Review your pay stub’s “deductions” section to see exactly where your money is going before it gets to you.

3. What is the difference between the federal W-4 and the NJ-W4?

The federal Form W-4 determines how much federal income tax is withheld. The NJ-W4 does the same for New Jersey state income tax. You must fill out both forms for your employer to withhold taxes correctly.

4. Do I have to pay city tax in New Jersey?

Most likely, no. Only Newark has a local payroll tax of 1% for people working within the city. Jersey City has a 1% payroll tax, but it is paid by employers, not employees. No other NJ cities have a local income tax.

5. How do I check if my NJ paycheck is correct?

Compare your pay stub against the calculations here or use an online paycheck calculator. Verify your gross pay, tax withholdings, and other deductions. If something looks wrong, contact your company’s HR or payroll department immediately.

6. Can my bonus be taxed differently in New Jersey?

Yes. Bonuses are considered supplemental wages and are often taxed at a different, higher flat rate for both federal and state purposes. The federal supplemental rate is 22%, and New Jersey’s is a flat rate based on the amount.

7. Why did my take-home pay change if my salary didn’t?

Your net pay can change if federal or state tax brackets are updated, FICA limits change, or your pre-tax benefit contributions (like health insurance premiums) are adjusted, which often happens annually.