A New Jersey paycheck has federal income tax, Social Security (6.2% up to the 2026 wage base of $184,500), and Medicare (1.45%), plus progressive New Jersey state income tax, and local income tax in some cities. On a $65,000 single-filer salary, estimated New Jersey take-home is about $50,560 a year, or $1,945 per biweekly paycheck.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.
New Jersey: the local picture
New Jersey runs a graduated state income tax with a top rate of 10.75% on income over $1M. NJ workers pay into State Disability Insurance (SDI), Family Leave Insurance (FLI), and Unemployment Insurance (UI). All three appear on most NJ pay stubs.
Every New Jersey worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.
New Jersey adds progressive state income tax. The bracket you fall into depends on filing status and taxable income. Verify current brackets with the New Jersey Division of Taxation.
Local taxes: New Jersey has cities or counties that levy local income tax on top of state tax. Common examples are noted on the local-tax page.
State Disability Insurance: New Jersey has employee-paid SDI premiums. The amount and cap are set by the state and shown as a separate line on your stub.
Paid Family Leave: New Jersey has a Paid Family Leave program with employee-paid premiums.
What changed recently in New Jersey
SDI rate adjusted annually, employee share around 0.06% of taxable wages in 2025.
FLI rate around 0.09%.
UI rate around 0.425% on the first $42,300.
New Jersey payroll quirks workers should know
Three separate worker contributions on every NJ paycheck (SDI, FLI, UI). Confusing line items.
NJ-W4 form for state withholding.
New Jersey is one of three states (with AK, PA) requiring employee SUI/UI contributions.
Example breakdown
A hypothetical New Jersey worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.
How PayslipIQ stays free: the tools and guides are free to use. PayslipIQ offers optional paid reports and monitoring, and links to independent CPA and tax-preparer directories. It is not affiliated with the IRS, the SSA, any employer, or any payroll provider, and does not sell user data. Educational only, not tax, legal, or financial advice.
Frequently asked questions
Does New Jersey have state income tax?
Yes. New Jersey uses progressive brackets. Verify with the New Jersey Division of Taxation.
Are there local income taxes in New Jersey?
Yes. New Jersey has cities or counties that add local income tax on top of state tax. Check your specific city.
Does New Jersey have State Disability Insurance or Paid Family Leave premiums?
New Jersey has employee-paid SDI premiums. New Jersey has a Paid Family Leave program with employee-paid premiums.
Does New Jersey have daily-overtime rules?
No. New Jersey follows federal FLSA: 1.5x for hours above 40 in a workweek.
What is FICA on a New Jersey paycheck?
FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
Where do I verify New Jersey state tax withholding?
The New Jersey Division of Taxation (https://www.state.nj.us/treasury/taxation/) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
Why does my NJ paycheck have three small state-level deductions?
They are NJ State Disability Insurance, Family Leave Insurance, and Unemployment Insurance worker contributions. Each is a small percentage but together they add up to roughly 0.5-0.6% of taxable wages.