How your New Jersey paycheck is calculated
New Jersey income tax withholding
Each NJ-W4 allowance is worth $19.20 weekly, $38.40 biweekly, $41.60 semimonthly or $83.30 monthly. After subtracting allowances, the rate table for your filing status is applied: Rate A for single and married filing separately, Rate B for married/civil union filing jointly, head of household and qualifying widow(er). Rates C, D and E are available if you chose them from the NJ-W4 wage chart.
Worker contributions (2026)
Unemployment insurance 0.3825% plus workforce development 0.0425% (0.425% total) on the first $44,800 of wages; disability insurance 0.19% and family leave insurance 0.23% on the first $171,100 (NJ Department of Labor, 2026 rates). They are shown per paycheck as a yearly average, so above a wage base your later paychecks will show none.
Pre-tax deductions
401(k) contributions up to the federal limit are excluded from New Jersey wages (NJ-WT), so they lower NJ withholding. Section 125 health premiums are treated as pre-tax.
Federal income tax, Social Security and Medicare
Federal withholding uses the IRS 2026 percentage method for automated payroll systems (Publication 15-T, Worksheet 1A). Social Security is 6.2% of wages up to the $184,500 wage base, and Medicare is 1.45% of all wages plus 0.9% Additional Medicare Tax on wages above $200,000. Per-paycheck Social Security and Medicare are shown as a yearly average: if you pass the wage base, your later paychecks will show none.
What this calculator does not include
This estimate does not cover bonuses or other supplemental wages, multiple jobs, Roth (after-tax) contributions, HSA payroll contributions, wage garnishments, or tips and overtime deductions unless you enter them on Form W-4 Step 4(b). Local payroll taxes such as the Newark payroll tax (an employer tax) are not modeled. Some Section 125 benefits are taxable in New Jersey. See the methodology for details.
Frequently asked questions
Which NJ rate table applies to me?
By default, Rate A applies to single and married filing separately, and Rate B to married/civil union couples filing jointly, heads of household and qualifying widow(er)s. You can pick Rate C, D or E on Form NJ-W4 if the wage chart suggests it.
How much is NJ SDI and FLI in 2026?
Workers pay 0.19% for disability insurance and 0.23% for family leave insurance on wages up to $171,100 in 2026: at most $325.09 and $393.53 for the year.
How much NJ unemployment is taken from my pay?
In 2026 workers contribute 0.425% (0.3825% UI + 0.0425% WF/SWF) on the first $44,800 of wages, up to $190.40 for the year.
How is federal income tax withholding calculated?
We follow Worksheet 1A of IRS Publication 15-T (2026) for a 2020-or-later Form W-4: your taxable pay is annualized, adjusted by the Form W-4 entries (Step 2 checkbox, Step 3 credits, Step 4 other income, deductions and extra withholding), run through the 2026 percentage-method table for your filing status, and divided back by your number of paychecks. Our engine reproduces all 4,350 cells of the IRS 2026 wage-bracket tables for weekly, biweekly, semimonthly and monthly pay.
Why does Social Security stop at $184,500?
For 2026 the Social Security (OASDI) wage base is $184,500 (SSA). The 6.2% employee tax applies only to wages up to that amount each year. Medicare (1.45%) has no cap, and employers must withhold an extra 0.9% Additional Medicare Tax on wages above $200,000 in the year, regardless of filing status.
Is withholding the same as the tax I will owe?
No. Withholding is an estimate taken from each paycheck. Your actual tax is settled when you file your return and depends on all your income, deductions and credits, so you may get a refund or owe more.
Official sources
- NJ Division of Taxation: Tables for Percentage Method of Withholding
- NJ Division of Taxation: NJ-WT New Jersey Income Tax Withholding Instructions
- NJ Department of Labor: Rate Information (2026 worker rates and wage bases)
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- IRS Rev. Proc. 2025-32 (2026 tax brackets and standard deduction)
- SSA: 2026 Social Security wage base ($184,500)
- IRS Topic 560: Additional Medicare Tax