How Paycheck Taxes Work in New Jersey
How paycheck taxes work in New Jersey: Your employer withholds federal income tax based on your W-4, then New Jersey state income tax using state withholding tables. Social Security (6.2%) and Medicare (1.45%) are also deducted from each paycheck. New Jersey has progressive taxation with a top rate of 10.75% on income over $1 million. Withholding uses NJ-W4 forms and state tables.
New Jersey State Tax Information
New Jersey income tax rates range from 1.4% to 10.75%.
New Jersey has progressive taxation with a top rate of 10.75% on income over $1 million. Withholding uses NJ-W4 forms and state tables.
Federal Income Tax
Federal income tax uses progressive brackets — higher income is taxed at higher rates. The standard deduction reduces your taxable income before brackets apply. Your W-4 determines how much your employer withholds each pay period.
Social Security
Social Security tax (FICA) is 6.2% of wages up to the annual wage base ($184,500 in 2026). Both employee and employer pay this amount; this calculator shows the employee portion.
Medicare
Medicare tax is 1.45% on all wages with no cap. High earners pay an additional 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).