NEW JERSEY PAYCHECK CALCULATOR
New Jersey carries the highest property tax burden of any state in the country, and it pairs that with a top income tax rate of 10.75%, one of the steepest in the nation. Put those two together and it’s no surprise the Tax Foundation ranks New Jersey 49th out of 50 states on its 2026 State Tax Competitiveness Index, ahead of only New York. But the state’s seven-bracket income tax starts gently at 1.4%, so what you actually owe depends heavily on where your income lands, not just the headline top rate.
A New Jersey paycheck has more line items than most states because of two payroll programs most workers elsewhere never see: Temporary Disability Insurance and Family Leave Insurance, both withheld directly from wages alongside the usual federal and state income tax, Social Security, and Medicare. If you’re commuting across state lines or weighing a move, check the New York paycheck calculator and Pennsylvania paycheck calculator for the two states most New Jersey commuters cross into, the Connecticut paycheck calculator for a third Northeast neighbor, or the Florida paycheck calculator to see how a no-income-tax state compares.
2026 New Jersey Paycheck Calculator TDI + FLI Included
Enter your pay details below to estimate your federal tax, New Jersey tax, payroll contributions, and take-home pay.
Estimate only, based on 2026 federal tax brackets and standard deductions (IRS Rev. Proc. 2025-32), a 6.2% Social Security rate up to the $184,500 wage base, the 1.45%/2.35% Medicare rate, New Jersey’s 2026 gross income tax brackets, a $1,000 personal exemption ($2,000 for joint filers), and 2026 NJ Temporary Disability (0.19%) and Family Leave (0.23%) contributions up to the $171,100 wage base. Does not include unemployment insurance employee withholding, pre-tax deductions like a 401(k), or municipal fees. Consult a tax professional for exact withholding.
Every Deduction on a New Jersey Paycheck
- Federal Income Tax: Withheld based on your W-4, taxable income, and filing status, using the 2026 federal brackets (10% to 37%).
- Social Security: A flat 6.2% of wages, up to the 2026 wage base of $184,500, capping the max employee contribution at $11,439.
- Medicare: 1.45% of all wages with no cap, plus an extra 0.9% on wages above $200,000 (single/HOH) or $250,000 (married filing jointly).
- New Jersey State Income Tax: Progressive, from 1.4% to 10.75%, applied after a $1,000 personal exemption ($2,000 for joint filers).
- NJ Temporary Disability Insurance (TDI): 0.19% of wages in 2026, up to a $171,100 wage base, funding paid leave if you can’t work due to a non-work illness or injury.
- NJ Family Leave Insurance (FLI): 0.23% of wages in 2026, up to the same $171,100 wage base, funding paid leave to bond with a new child or care for a seriously ill family member.
- Local Income Tax: None statewide, though Newark and Jersey City levy payroll taxes on employers, not employees, so this doesn’t show up on a worker’s own pay stub.
New Jersey’s Income Tax Brackets by Filing Status
New Jersey’s income tax hasn’t changed its bracket thresholds in years, since the state doesn’t index them for inflation the way the federal government does. That means the dollar amounts below stay fixed year over year until lawmakers actively vote to change them, which makes New Jersey’s structure unusually predictable compared to states that adjust brackets annually.
| Rate | Single / Married Filing Separately | Married Filing Jointly / Head of Household |
|---|---|---|
| 1.4% | $0 – $20,000 | $0 – $20,000 |
| 1.75% | $20,000 – $35,000 | $20,000 – $50,000 |
| 2.45% | N/A | $50,000 – $70,000 |
| 3.5% | $35,000 – $40,000 | $70,000 – $80,000 |
| 5.525% | $40,000 – $75,000 | $80,000 – $150,000 |
| 6.37% | $75,000 – $500,000 | $150,000 – $500,000 |
| 8.97% | $500,000 – $1,000,000 | $500,000 – $1,000,000 |
| 10.75% | $1,000,000+ | $1,000,000+ |
Source: New Jersey Division of Taxation, Tax Rate Schedules (Tables A & B). Rates apply to New Jersey taxable income after the $1,000 personal exemption ($2,000 for joint filers).
The 8.97% and 10.75% brackets get most of the headlines, but they only apply to income above $500,000 and $1,000,000. A household earning $80,000 a year, which is close to the statewide median, spends most of its taxable income in the 1.4% to 5.525% range, keeping the effective rate well below the top marginal number.
New Jersey vs. Other States at $70,000 (Single Filer)
Here’s how a $70,000 salary breaks down for a single filer with no dependents in New Jersey compared to the two states most New Jersey workers actually commute into.
| State | State Income Tax | Estimated Net Pay |
|---|---|---|
| New Jersey | ~$2,320 state tax + ~$294 TDI/FLI | ~$55,461 |
| Pennsylvania | ~$2,149 (flat 3.07%, no standard deduction) | ~$55,926 |
| New York | ~$3,245 (progressive, after $8,000 standard deduction) | ~$54,830 |
Federal tax and FICA are identical across all three states at this income level ($6,570 federal, $5,355 FICA). New York’s figure excludes any New York City resident tax, which applies on top of state tax for city residents. New Jersey’s figure includes its TDI and FLI payroll contributions, which the other two states don’t have as direct employee-side deductions at this scale.
New Jersey’s Tax Trade-Offs, Honestly
| Tax Type | New Jersey | National Context |
|---|---|---|
| Top Individual Income Tax Rate | 10.75% | Among the highest top marginal rates in the country |
| Sales Tax | 6.625% statewide | Close to the national population-weighted average of 7.53% |
| Effective Property Tax Rate | ~1.89% to 2.23% | The highest in the nation on most measures |
| Estate / Inheritance Tax | No estate tax; inheritance tax of 11% to 16% on some non-immediate-family beneficiaries | Most states have neither; a minority levy one or the other |
The honest picture: New Jersey’s low starting income tax rate and near-average sales tax get overshadowed by two things, the punishing property tax bill homeowners face and a top income tax bracket that hits high earners hard. For a renter earning a middle income, New Jersey’s overall tax burden looks far more reasonable than the state’s national reputation suggests. For a homeowner, especially one with a home assessed well above the state median, property tax is where the real cost shows up year after year.
Cross-Border Commuters: New York and Pennsylvania
New Jersey’s location means a huge share of its workforce earns income somewhere else entirely, commuting into New York City or Philadelphia daily. New Jersey has a reciprocal agreement with Pennsylvania, so a New Jersey resident working in Pennsylvania pays income tax only to New Jersey, not both states, and vice versa. There’s no such reciprocal deal with New York, which means a New Jersey resident working in Manhattan generally pays New York state income tax on those wages first, then claims a credit on their New Jersey return to avoid being taxed twice on the same income.
Anyone who splits their work location between New Jersey and a neighboring state during the year should keep careful records of where the work was physically performed, since that detail drives which state has the first claim to tax it.
2026 Federal Tax Brackets: A Worked Example
Federal tax applies the same way in New Jersey as anywhere else. Here’s the math for a single filer earning $70,000 in 2026, using the $16,100 standard deduction and the seven federal brackets from IRS Rev. Proc. 2025-32.
Add Social Security ($4,340), Medicare ($1,015), New Jersey state tax (about $2,320), and TDI plus FLI (about $294 combined), and the total tax bill on that $70,000 salary comes to roughly $14,539, an effective rate of about 20.8% before any pre-tax deductions like a 401(k). The federal piece alone still makes up the largest single line.
Frequently Asked Questions
What is the New Jersey state income tax rate?
New Jersey uses a progressive income tax with seven marginal rates for single filers, from 1.4% on the first $20,000 of taxable income up to 10.75% on taxable income above $1,000,000. Married filing jointly and head of household filers use wider brackets with an extra 2.45% tier.
What is deducted from a New Jersey paycheck?
A New Jersey paycheck has federal income tax, Social Security, and Medicare like every state, plus New Jersey income tax withholding, a Temporary Disability Insurance (TDI) contribution of 0.19% of wages, and a Family Leave Insurance (FLI) contribution of 0.23% of wages, both up to a $171,100 wage base in 2026.
Why are property taxes so high in New Jersey?
New Jersey funds a large share of local government and school budgets through property tax rather than a broader mix of taxes. The state’s effective property tax rate averages around 1.89% to 2.23% of home value depending on the measurement source, among the highest in the country, with a median annual bill above $9,300.
Does New Jersey tax Social Security benefits?
No. New Jersey does not tax Social Security benefits, Railroad Retirement benefits, or military pensions. The state also offers a retirement income exclusion of up to $100,000 for married couples filing jointly aged 62 or older who meet income limits.
What is New Jersey’s sales tax rate?
New Jersey has a single statewide sales tax rate of 6.625%, with a reduced 3.3125% rate at qualified businesses inside Urban Enterprise Zones. Groceries, prescription drugs, and most clothing and footwear are exempt.
How does New Jersey’s tax burden compare nationally?
New Jersey ranks 49th out of 50 states on the Tax Foundation’s 2026 State Tax Competitiveness Index, ahead of only New York. High property taxes, a steep top income tax rate, and one of the highest corporate tax rates in the country all weigh on the ranking.
New Jersey’s tax code punishes exactly two things hard: owning an expensive home and earning a very high income. Neither of those describes most residents most of the time, which is part of why the state’s tax reputation runs ahead of what a typical middle-income renter or homeowner actually experiences. Before assuming the worst based on the state’s rankings, run your own numbers against your specific town’s property tax rate and your actual bracket, since both vary enough to change the picture substantially.