New Jersey tax summary for 2026
| Tax on wages | Graduated brackets |
|---|---|
| Starting point | Federal adjusted gross income |
| Rates (single) | 1.4% – 10.75% |
| Standard deduction | None |
| Personal exemption | Single $1,000 · Married filing jointly $2,000 · Head of household $1,000 · per dependent $1,500 — a deduction from income |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | Unemployment Insurance (UI) – employee (private employer), Disability Insurance / Temporary Disability (DI/TDI) – employee, Workforce Development / Supplemental Workforce Fund (WF/SWF) – employee, Family Leave Insurance (FLI) – employee |
| Local income taxes | None |
New Jersey income tax brackets 2026
Rates apply to New Jersey taxable income, after the deductions above.
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | $20,000 | 1.4% |
| $20,000 | $35,000 | 1.75% |
| $35,000 | $40,000 | 3.5% |
| $40,000 | $75,000 | 5.525% |
| $75,000 | $500,000 | 6.37% |
| $500,000 | $1,000,000 | 8.97% |
| $1,000,000 | and up | 10.75% |
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | $20,000 | 1.4% |
| $20,000 | $50,000 | 1.75% |
| $50,000 | $70,000 | 2.45% |
| $70,000 | $80,000 | 3.5% |
| $80,000 | $150,000 | 5.525% |
| $150,000 | $500,000 | 6.37% |
| $500,000 | $1,000,000 | 8.97% |
| $1,000,000 | and up | 10.75% |
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | $20,000 | 1.4% |
| $20,000 | $50,000 | 1.75% |
| $50,000 | $70,000 | 2.45% |
| $70,000 | $80,000 | 3.5% |
| $80,000 | $150,000 | 5.525% |
| $150,000 | $500,000 | 6.37% |
| $500,000 | $1,000,000 | 8.97% |
| $1,000,000 | and up | 10.75% |
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | $20,000 | 1.4% |
| $20,000 | $35,000 | 1.75% |
| $35,000 | $40,000 | 3.5% |
| $40,000 | $75,000 | 5.525% |
| $75,000 | $500,000 | 6.37% |
| $500,000 | $1,000,000 | 8.97% |
| $1,000,000 | and up | 10.75% |
New Jersey employee payroll taxes
| Program | Employee rate | Wage base | Annual maximum |
|---|---|---|---|
| Unemployment Insurance (UI) – employee (private employer) Worker UI rate for calendar year 2026 (Jan 1–Dec 31). Wage base: $44,800. | 0.383% | $44,800 | $171.36 |
| Disability Insurance / Temporary Disability (DI/TDI) – employee Worker DI rate for calendar year 2026. Separate TDI wage base for workers only: $171,100 (differs from employer TDI base of $44,800). | 0.19% | $171,100 | $325.09 |
| Workforce Development / Supplemental Workforce Fund (WF/SWF) – employee Worker WF/SWF rate for calendar year 2026. Wage base same as UI: $44,800. | 0.042% | $44,800 | $19.04 |
| Family Leave Insurance (FLI) – employee Worker FLI rate for calendar year 2026. Wage base same as worker TDI: $171,100. | 0.23% | $171,100 | $393.53 |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| New Jersey income tax | $78.60 | $2,044 |
| Unemployment Insurance (UI) – employee (private employer) | $6.59 | $171 |
| Disability Insurance / Temporary Disability (DI/TDI) – employee | $4.75 | $124 |
| Workforce Development / Supplemental Workforce Fund (WF/SWF) – employee | $0.73 | $19 |
| Family Leave Insurance (FLI) – employee | $5.75 | $150 |
| Take-home pay | $1,996.18 | $51,901 |
Effective tax rate 20.2%; tax on the next dollar earned 25.6%. New Jersey taxable income is $64,000.
Second example: $120,000, married filing jointly, two children
Take-home $100,907 a year ($3,881.03 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, New Jersey income tax $3,579, state payroll taxes $694.
How the New Jersey estimate is calculated
- Start from federal adjusted gross income — wages minus traditional 401(k) and Section 125 deductions.
- New Jersey has no standard deduction in our data. Subtract personal exemptions (dependents = the number of children you enter).
- Apply the brackets for your filing status.
- Add Unemployment Insurance (UI) – employee (private employer) and Disability Insurance / Temporary Disability (DI/TDI) – employee and Workforce Development / Supplemental Workforce Fund (WF/SWF) – employee and Family Leave Insurance (FLI) – employee on wages after Section 125 deductions, up to each program’s wage base or annual cap.
- Divide the annual total by your number of paychecks.
What this New Jersey calculator does not model
- New Jersey gross income differs from federal AGI: NJ does NOT exclude 403(b), 457, SEP or federal TSP deferrals, HSA contributions, or traditional IRA and student-loan-interest deductions, and taxes some Section 125 salary-reduction amounts (TB-39). The calculator starts from federal AGI (which correctly excludes 401(k) deferrals, as NJ does), so it understates NJ income for those items.
- Additional $1,000 exemptions for age 65+, blind/disabled, and dependents attending college
- Property Tax Deduction (up to $15,000) or $50 Property Tax Credit
- New Jersey Earned Income Tax Credit (40% of federal EITC)
- New Jersey Child Tax Credit (increased 25% for tax years 2026–2028 by the FY2027 budget)
- Child and Dependent Care Credit
- Medical expense deduction and other NJ deductions
- Pension/retirement income exclusions (age-based)
Data notes
- Rates unchanged since tax year 2020 (P.L. 2020, c.94); the FY2027 budget signed June 30, 2026 did not change gross income tax rates. Schedules re-verified against the NJ-1040 Tax Rate Schedules: Table A (single/MFS) 1.4% to $20,000, 1.75% to $35,000, 3.5% to $40,000, 5.525% to $75,000, 6.37% to $500,000, 8.97% to $1,000,000, 10.75% above; Table B (MFJ/HOH/QSS) adds a 2.45% bracket ($50,000–$70,000).
- Exemptions (NJ-1040 lines 6–11): $1,000 for the taxpayer and $1,000 for a spouse on a joint return; $1,500 per dependent. Head of household gets only the taxpayer's $1,000 regular exemption (the previous file had $1,500).
- startsFrom changed from 'own' to 'federalAGI': the engine's 'own' base does not subtract 401(k) deferrals, but NJ excludes 401(k) contributions up to the federal limit (NJ-1040 instructions). Federal AGI is the closer base for typical wage earners; remaining differences are listed in notModeled.
- No standard deduction on the NJ return.
- NJ-WT withholding uses different (higher) rates; those are not used for liability.
Sources
- State income tax: NJ Division of Taxation – 2025 Form NJ-1040 Instructions (exemptions, NJ gross income, Tax Rate Schedules) (read 2026-10-07)
- State income tax: NJ Division of Taxation – NJ Income Tax Rates (read 2026-10-07)
- State income tax: 2026 Form NJ-1040-ES estimated tax vouchers (read 2026-10-07)
- State income tax: Governor Sherrill signs FY 2027 Appropriations Act (no income tax rate change; CTC increase TY2026–2028) (read 2026-10-07)
- Unemployment Insurance (UI) – employee (private employer): Rate information, contributions, and due dates – NJ Division of Employer Accounts (read 2026-10-07)
- Disability Insurance / Temporary Disability (DI/TDI) – employee: Rate information, contributions, and due dates – NJ Division of Employer Accounts (read 2026-10-07)
- Workforce Development / Supplemental Workforce Fund (WF/SWF) – employee: Rate information, contributions, and due dates – NJ Division of Employer Accounts (read 2026-10-07)
- Family Leave Insurance (FLI) – employee: Rate information, contributions, and due dates – NJ Division of Employer Accounts (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: Delaware, New York, Pennsylvania
States with a similar tax setup: Nebraska, Missouri, West Virginia, South Carolina, Arkansas, New Mexico
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.