New Jersey Paycheck Calculator
See exactly what you take home after federal taxes, New Jersey state income tax, Social Security, and Medicare. Updated for 2026.
New Jersey Income Tax Explained (2026)
New Jersey has a state income tax with a progressive (1.4%–10.75%) structure. Workers earning typical wages generally pay an effective state rate between 4.5% and 9.0% depending on income and deductions. Understanding how New Jersey's tax works helps you accurately predict your take-home pay and plan your withholding.
New Jersey residents also pay federal income tax (10%–37%), Social Security (6.2% up to $184,500), and Medicare (1.45%). The combination of federal and state taxes is the primary driver of the gap between your gross pay and your actual paycheck.
How New Jersey compares to neighboring states
What taxes come out of a New Jersey paycheck?
A New Jersey W-2 employee's paycheck is reduced by federal income tax (progressive 10%–37%), New Jersey state income tax (progressive (1.4%–10.75%)), Social Security at 6.2% on wages up to $184,500, and Medicare at 1.45% on all wages. High earners above $200,000 also pay an additional 0.9% Medicare surtax on excess wages.
New Jersey freelancers and 1099 contractors pay self-employment tax of 15.3% — covering both employee and employer portions of Social Security and Medicare — on top of both federal and state income taxes. Half of the self-employment tax is deductible from federal adjusted gross income, reducing the effective burden slightly. New Jersey freelancers must also make quarterly estimated state tax payments.
New Jersey tax tips for 2026
- High rates for high earners: New Jersey's rates jump sharply above $500,000, reaching 10.75% — among the highest in the nation. Middle-income workers (below $150,000) pay 5.525%–6.37%.
- Standard deduction: New Jersey does not use a standard deduction. Instead, NJ allows a personal exemption of $1,000 (single) with various itemized deductions.
- Property tax deduction: NJ allows a deduction of up to $15,000 of property taxes paid on your state income tax return.
- Retirement exemption: New Jersey provides generous retirement income exclusions — up to $100,000 for married filers age 62+ (income-based). New Jersey does not tax Social Security benefits.