New Jersey Payroll Calculator 2025 iCalculator US

Knowing your exact take-home pay allows you to budget effectively. Our NJ paycheck calculator provides precise estimates, enabling you to plan for expenses, savings, and investments without surprises. New Jersey’s minimum wage ($15.13) is higher than the federal rate. Our NJ wage calculator is new jersey paycheck calculator updated with the latest rates to help ensure that your earnings meet or exceed state requirements. Yes, while this calculator is specifically designed for New Jersey, Paystubsnow offers paycheck calculators for various states. You can easily switch to the appropriate state-specific tool if you work in or are considering a move to another state.

This deduction contributes to the state’s unemployment, disability, and family leave insurance programs. New Jersey’s state income tax rate of 1.4% to 10.75% affects your take-home pay along with federal taxes. Understanding New Jersey’s state income tax structure is essential for accurate financial planning and budgeting.

In our paycheck calculators, SUI is used to refer to the unemployment tax paid by the employee. For New Jersey’s disability insurance tax rates today and in past years, check New Jersey’s SDI section in Payroll Resources. Factor in additional deductions such as health insurance or retirement contributions to get a full picture of your net pay. By entering your specific information—such as hourly wage, hours worked, and deductions—you receive customized calculations that reflect your unique financial situation. Suburban Computer Services is neither a payroll or an accounting service. Withholding taxes are based on the most current Federal and State withholding rates.

Earnings

On the other hand, Medicare tax is a flat rate of 1.45% that applies to all wages. There is an additional Medicare surtax of 0.9% that applies to high income earners. Two of the main things taken from your paycheck are federal and state income tax. When you start working, you’ll need to fill out a federal Form W-4 and a state Form NJ-W4 (Employee’s Withholding Allowance Certificate).

How to Use New Jersey Paycheck Calculator

This tax is in addition to federal income tax, Social Security, and Medicare deductions. SUI (State Unemployment Insurance), also known as SUTA (State Unemployment Tax Act), are payroll taxes that employers, and in some states employees, have to pay to their state unemployment fund. These contributions support unemployment payments for displaced workers.

• There are no standard commercial network affiliates in the state.
• There has been an increase from the previous year when it was 92,340 U.S. dollars.
• For pre-tax deductions, check the Exempt checkboxes, meaning the deduction will be taxed.
• If you’re an employee in Newark, it’s important to know that while the city has a 1% payroll tax, it applies to employers, not workers.
• This ensures that your paycheck estimates are based on the most current tax information available.

If my paycheck has a bonus, is it taxed differently?

New Jersey has a progressive income tax system, meaning that the tax rate increases with income. The rates range 6.62%, depending on how much you earn and your filing status. The highest tax rate in New Jersey is among the highest in the country. New Jersey follows federal guidelines for overtime, requiring employers to pay one and a half times the regular rate for hours over 40 in a week. Our calculator automatically includes these rules so that your overtime calculations are accurate and compliant. Subtract federal and state taxes, Social Security, Medicare, and any other withholdings from your gross pay.

Best New Jersey Paycheck Calculator for Crystal-clear and Accurate Calculations

As of 2024, local governments and municipalities are still in the process of regulating marijuana-related businesses within their jurisdictions. New Jersey is divided into 21 counties; 13 date from the colonial era. Elected county officials are now called county commissioners as of bill S855 signed by Governor Murphy on August 8, 2020. The National Hockey League’s New Jersey Devils, based in Newark at the Prudential Center, is the only major league sports franchise to bear the state’s name. As of 2023, the Devils have appeared in 23 postseasons in 40 seasons in New Jersey, reaching five Stanley Cup Finals (most recently in 2012) and winning it in 1995, 2000, and 2003. Amtrak operates numerous long-distance passenger trains in New Jersey, both to and from neighboring states and around the country.

Our NJ paycheck tax calculator computes these deductions accurately to determine your net pay. Overtime pay comes into play when you work more than 40 hours in a week. In New Jersey, overtime is typically paid at one and a half times your regular hourly rate. Our NJ pay calculator accurately calculates the additional income from overtime, ensuring you receive what you’re entitled to.

Any earnings exceeding $200,000 are subject to an additional 0.9% Medicare surtax, which employers do not match. Your location, job type, hours, exemptions, and benefits all change your paycheck. Even two people with the same salary may take home different amounts. That lowers your taxable income, which might help your net pay slightly, even if the deduction seems like a loss upfront. Deductions for healthcare, retirement plans, or commuter benefits lower your take-home pay—but they often save you money long-term.

Employee Paycheck Results

• The median household income in New Jersey was 91,590 U.S. dollars as of 2023.
• In New Jersey, your paycheck deductions typically consist of federal income tax, state income tax, Social Security, Medicare and state payroll taxes.
• New Jersey applies an apportionment formula to determine the portion of your income that is taxable in the state, usually based on the ratio of your New Jersey-sourced income to your total income.
• On February 15, 1804, New Jersey became the last northern state to abolish new slavery and enacted legislation that slowly phased out existing slavery.

The New Jersey Paycheck Calculator accounts for federal and state taxes, but New Jersey does not have local income taxes to consider. New Jersey paycheck calculator estimates the taxes deducted from your earnings as an employee, including Federal, New Jersey State, Social Security and Medicare taxes. New Jersey operates under a progressive income tax system, with tax rates ranging from 1.40% to 10.75%, making the top rate one of the highest in the United States. Employers in NJ must withhold the right taxes and pay state-specific contributions. This includes matching your Social Security and Medicare, plus NJ unemployment, disability, and leave insurance contributions. Your paycheck deductions cover federal, state, and local taxes, along with Social Security, Medicare, and possibly disability or local fund contributions.These amounts shrink your paycheck, but they’re mandatory.

The IRS continually aims to simplify the W-4 form for ease of use and to improve the accuracy of withholding. This helps reduce the chance of underpayment or overpayment of taxes. Updates reflect changes in income tax brackets, standard deduction amounts, and other economic factors that influence withholding needs, making it essential to adapt the W-4 accordingly. Multiply your hourly wage by the hours worked in the pay period. Net pay is the amount you take home after all deductions have been subtracted from your gross pay.