New Jersey Salary Paycheck Calculator
Are you interested in your take-home pay in New Jersey? Our New Jersey Salary Paycheck Calculator provides a precise estimate of your net income after deductions.
Whether you’re a current resident or considering relocating to the Bay State, knowing how your paycheck is distributed can help you manage your finances effectively.
Gross To Net Calculator
The amount that remains after these deductions are considered your net pay.
New Jersey Taxes: What You Need to Know
New Jersey residents pay some of the country’s highest property and income tax rates. However, the state’s sales tax falls in the middle compared to other states, and there are various tax breaks available for older adults. While there is no tax on Social Security benefits, New Jersey does tax inheritances and most pensions.
You must pay taxes even if you reside in New Jersey or earn income from a New Jersey source as a nonresident.
However, the state’s income tax rates vary from 1.4% to 10.75%, and the sales tax rate is 6.625%. All tax revenues go into the State Treasury for general state use; none goes to municipalities. The state sales tax is reduced by half to encourage economic development, resulting in an effective tax rate of 3.3125% in urban enterprise zones.
New Jersey tax provides deductions and credits to lower your tax liability, including deductions for medical expenses, alimony, and self-employed health insurance. The state also offers tax credits such as the earned income tax credit and child and dependent care credit.
So, let’s look into the other major tax rates and percentages.
Federal State, and Local Tax Withholding
Federal Income Tax: The withheld amount is based on your income, filing status, and the information provided on your W-4 form. The rates usually range from 10% to 37%.
State Income Tax: New Jersey has a progressive income tax system with rates ranging from 1.4% to 10.75%.
Local Taxes: New Jersey does not have local income taxes.
FICA & State Insurance Taxes
FICA Taxes:
Social Security: 6.2% of your wages, matched by your employer.
Medicare: 1.45% of your wages, also matched by your employer. An additional 0.9% Medicare surtax applies to wages over $200,000 for single filers and $250,000 for joint filers.
State Insurance Taxes:
- State Disability Insurance (SDI): 0.26%.
- State Unemployment Insurance (SUI): 0.425%.
- State Family Leave Insurance (FLI): 0.16%.
- State Workers Compensation Insurance: Varies by employer.
Pre-Tax Deductions
Medical Insurance: Premiums are often deducted before taxes, reducing taxable income.
401(k) Contributions: Contributions to a 401(k) plan are also pre-tax, lowering your taxable income.
Tax Percentage Breakdown
| Tax Type | Percentage |
| Federal Income Tax | 10% – 37% |
| State Income Tax | 1.4% – 10.75% |
| Social Security (FICA) | 6.2% |
| Medicare (FICA) | 1.45% |
| Additional Medicare Surtax | 0.9% (over $200,000) |
| State Disability Insurance (SDI) | 0.26% |
| State Unemployment Insurance (SUI) | 0.425% |
| State Family Leave Insurance (FLI) | 0.16% |
Median household income in New Jersey
The median household income in New Jersey was 91,590 U.S. dollars as of 2023. There has been an increase from the previous year when it was 92,340 U.S. dollars.
New Jersey Tax Brackets 2024
New Jersey has a graduated income tax system, meaning the tax rate increases as income increases. The tax brackets vary based on filing status, such as single, married filing jointly, married filing separately, and head of household. These rates are designed to ensure that higher earners pay a higher percentage of their income in taxes.
Here are the New Jersey tax brackets for 2024 for different filing statuses:
| Filing Status | Income Range | Tax Rate |
| Single | $0 – $20,000 | 1.4% |
| $20,001 – $35,000 | 1.75% | |
| $35,001 – $40,000 | 3.5% | |
| $40,001 – $75,000 | 5.53% | |
| $75,001 – $500,000 | 6.37% | |
| $500,001 – $1,000,000 | 8.97% | |
| Over $1,000,000 | 10.75% | |
| Married Filing Jointly | $0 – $20,000 | 1.4% |
| $20,001 – $50,000 | 1.75% | |
| $50,001 – $70,000 | 2.45% | |
| $70,001 – $80,000 | 3.5% | |
| $80,001 – $150,000 | 5.53% | |
| $150,001 – $500,000 | 6.37% | |
| $500,001 – $1,000,000 | 8.97% | |
| Over $1,000,000 | 10.75% | |
| Married Filing Separately | $0 – $20,000 | 1.4% |
| $20,001 – $35,000 | 1.75% | |
| $35,001 – $40,000 | 3.5% | |
| $40,001 – $75,000 | 5.53% | |
| $75,001 – $500,000 | 6.37% | |
| $500,001 – $1,000,000 | 8.97% | |
| Over $1,000,000 | 10.75% | |
| Head of Household | $0 – $20,000 | 1.4% |
| $20,001 – $50,000 | 1.75% | |
| $50,001 – $70,000 | 3.5% | |
| $70,001 – $80,000 | 5.53% | |
| $80,001 – $150,000 | 6.37% | |
| $150,001 – $500,000 | 8.97% | |
| Over $1,000,000 | 10.75% |
For an example
Let’s say you are single, and your taxable income is $50,000:
- First $20,000: Taxed at 1.4% = $280
- Next $15,000 (from $20,001 to $35,000): Taxed at 1.75% = $262.50
- Next $5,000 (from $35,001 to $40,000): Taxed at 3.5% = $175
- Remaining $10,000 (from $40,001 to $50,000): Taxed at 5.53% = $553
So, the total Tax is = $280 + $262.50 + $175 + $553 = $1,270.50
Frequently Asked Questions
No, New Jersey does not have local income taxes. The New Jersey Paycheck Calculator accounts for federal and state taxes, but New Jersey does not have local income taxes to consider.
Yes, New Jersey offers several specific deductions that you can claim on your state income tax return. These include:
- Personal Exemptions: $1,000 for yourself and your spouse (if filing jointly).
- Senior Exemptions: $1,000 if you are 65 or older.
- Blind or Disabled Exemptions: $1,000 if you are blind or disabled.
- Veteran Exemptions: $6,000 for honorably discharged veterans.
- Dependent Exemptions: $1,500 for each dependent.
- Medical Expenses: Certain medical expenses can be deducted from your gross income.
Yes, the KEKA paycheck calculator is regularly updated to reflect the latest federal and state tax laws, ensuring that the calculations are accurate and up to date.
New Jersey’s state tax system is progressive, with rates ranging from 1.40% to 10.75%, depending on your income level. Unlike federal taxes, New Jersey does not allow deductions for mortgage interest, employee business expenses, or IRA contributions. However, it does offer specific deductions, such as medical expenses and alimony payments.
When using the KEKA Paycheck Calculator New Jersey, you can input information for multiple jobs or additional income sources. It lets you enter additional income and employment details to ensure accurate withholding calculations and offers a dual scenario calculator to compare different income scenarios.
Pre-tax deductions such as health insurance premiums and retirement contributions can be entered into the KEKA Paycheck Calculator. These deductions reduce your taxable income, which in turn lowers the amount of federal and state taxes withheld from your paycheck.
To adjust the KEKA Paycheck Calculator for filing jointly with your spouse, select the appropriate filing status (Married Filing Jointly) and enter combined income and withholding information. This will ensure that the calculator accurately reflects the tax implications of your joint filing status.
