If you work in New Jersey, understanding how much of your paycheck actually reaches your bank account can feel confusing. Between federal taxes, payroll taxes, and New Jersey’s progressive income tax, your take-home pay is smaller than your gross pay.
This guide breaks down how to calculate taxes from your paycheck in NJ — step by step, with clear examples and simple math so you can easily estimate your net income after taxes.
Step 1: Know Your Gross Pay
Your gross pay is the total amount you earn before any taxes or deductions. It’s your starting point for all paycheck calculations.
Examples:
- If you earn $70,000 per year, your monthly gross pay is about $5,833.
- If you make $25/hour and work 40 hours a week, your gross pay is about $1,000 per week, or roughly $52,000 annually.
Your gross pay forms the basis for calculating all federal and state deductions. Calculate pre- and post-tax income using the New York after-tax calculator.
Step 2: Subtract Pre-Tax Deductions
Some deductions reduce your taxable income before taxes are applied. These are called pre-tax deductions.
Common examples include:
- 401(k) or 403(b) retirement plan contributions
- Health, dental, or vision insurance premiums
- Health Savings Account (HSA) or Flexible Spending Account (FSA) contributions
- Commuter benefits (if offered by your employer)
Example:
If your gross pay is $5,833 and you contribute $300 to a 401(k) and $150 to insurance, your taxable income becomes:
$5,833 – $450 = $5,383
These deductions help lower both your federal and state taxable income.
Step 3: Estimate Federal Income Tax
The IRS uses progressive tax brackets, meaning higher portions of your income are taxed at higher rates.
2025 Federal Income Tax Brackets (Single Filers)
| Tax Rate | Income Range |
|---|---|
| 10% | Up to $11,600 |
| 12% | $11,601 – $47,150 |
| 22% | $47,151 – $100,525 |
| 24% | $100,526 – $191,950 |
If your taxable income is $70,000, about $7,000–$8,000 typically goes toward federal income tax, depending on your deductions and filing status.
Whether you’re an employee or employer, our accurate payroll calculator ensures correct earnings estimations every time.
Step 4: Subtract FICA Taxes (Social Security & Medicare)
All workers in New Jersey pay FICA taxes, which fund Social Security and Medicare.
| Tax Type | Rate | Notes |
|---|---|---|
| Social Security | 6.2% | Applies to wages up to $168,600 (2025 cap) |
| Medicare | 1.45% | Applies to all wages |
| Additional Medicare | 0.9% | Applies to income above $200,000 (single) |
Example:
On a $70,000 salary:
- Social Security: $70,000 × 6.2% = $4,340
- Medicare: $70,000 × 1.45% = $1,015
Total FICA = $5,355 per year
Step 5: Calculate New Jersey State Income Tax
New Jersey has a progressive state income tax, with rates ranging from 1.4% to 10.75%, depending on income.
2025 New Jersey Income Tax Rates (Single Filers)
| Taxable Income | Tax Rate |
|---|---|
| $0 – $20,000 | 1.4% |
| $20,001 – $35,000 | 1.75% |
| $35,001 – $40,000 | 3.5% |
| $40,001 – $75,000 | 5.525% |
| $75,001 – $500,000 | 6.37% |
| Over $500,000 | 8.97%–10.75% |
Example:
If you make $70,000, you’ll likely pay around $3,800–$4,000 in NJ state income tax per year.
Teachers in Texas can review payroll using the Texas teacher calculator.
Step 6: Account for NJ Payroll Deductions
New Jersey also requires several state-specific payroll contributions. These are small but mandatory.
| Deduction Type | 2025 Rate (Approx.) | Notes |
|---|---|---|
| State Unemployment Insurance (SUI) | 0.3825% | Up to $42,300 in wages |
| Temporary Disability Insurance (TDI) | 0.47% | Up to $161,400 |
| Family Leave Insurance (FLI) | 0.09% | Up to $161,400 |
| Workforce Development Fund | 0.0425% | Up to $42,300 |
Combined, these typically cost less than $400 per year for most employees — but they still affect your take-home pay.
Step 7: Subtract Post-Tax Deductions
After taxes, some employers still withhold post-tax deductions such as:
- Roth IRA contributions
- Union dues
- Wage garnishments
- After-tax insurance or charitable donations
These don’t affect your taxable income but reduce your final paycheck amount.
Step 8: Calculate Your Net (Take-Home) Pay
Now that we’ve accounted for all deductions, let’s bring it all together.
Formula:
Net Pay = Gross Pay – (Pre-Tax Deductions + Federal + FICA + State + NJ Payroll + Post-Tax Deductions)
Example: $70,000 Salary (Single, NJ Resident)
| Category | Amount |
|---|---|
| Gross Pay | $70,000 |
| Pre-Tax Deductions | – $2,400 |
| Federal Tax | – $7,200 |
| FICA (Social Security + Medicare) | – $5,355 |
| NJ State Tax | – $3,900 |
| NJ Payroll Deductions | – $300 |
| Post-Tax Deductions | – $500 |
| Net Take-Home Pay | ≈ $50,645/year |
That’s roughly $4,220 per month or $1,945 biweekly.
Step 9: How Pay Frequency Affects Your Paycheck
Your annual net income stays the same, but your paycheck size changes with your pay schedule.
| Pay Schedule | Paychecks per Year | Example Take-Home ($70,000) |
|---|---|---|
| Weekly | 52 | ≈ $970 |
| Biweekly | 26 | ≈ $1,945 |
| Monthly | 12 | ≈ $4,220 |
If you get paid weekly, your checks are smaller but arrive more often — a factor worth considering for budgeting.
Step 10: Compare NJ Paychecks to Other States
| State | State Income Tax | Net Pay (on $70,000) |
|---|---|---|
| New Jersey | 1.4%–10.75% | ≈ $50,600 |
| Pennsylvania | 3.07% flat | ≈ $52,000 |
| New York | 4%–10.9% + local | ≈ $49,800 |
| Florida | 0% | ≈ $54,200 |
New Jersey’s take-home pay is moderate — higher than New York but slightly lower than no-tax states like Florida.
Step 11: Tips to Maximize Your Take-Home Pay
- Review Your Withholding Forms (W-4 & NJ-W4): Adjust allowances to match your current income and dependents.
- Contribute to Pre-Tax Accounts: 401(k), FSA, and HSA contributions reduce taxable income.
- Track NJ Payroll Contributions: Verify small deductions (TDI, FLI, UI) on your pay stub for accuracy.
- Plan for Overtime and Bonuses: These often have higher withholding rates (up to 22% federal).
- Use Reliable Tools: Estimate gross-to-net results with the gross-to-net New York calculator.
Frequently Asked Questions
1. What percentage of my paycheck goes to taxes in NJ?
Most New Jersey employees lose between 25% and 33% of their paycheck to taxes (federal + FICA + state + payroll deductions).
2. Does New Jersey have local income taxes?
No. Unlike New York City, New Jersey does not impose local (city) income tax.
3. How can I reduce paycheck taxes in NJ?
Increase pre-tax deductions (401(k), HSA, FSA) and review your W-4 and NJ-W4 forms annually.
4. What are NJ payroll deductions for?
They fund unemployment insurance, temporary disability, and family leave programs.
5. How does overtime affect my taxes in New Jersey?
Overtime pay increases gross income, potentially pushing you into a higher tax bracket for that portion of income.
Bettye is the creator of CityPaycheckCalculator.com, a resource designed to help individuals quickly and accurately estimate their take-home pay across U.S. cities. With a strong focus on clarity, accuracy, and user experience, Bettye provides reliable paycheck calculators and helpful insights to support smarter financial decisions. Her mission is to make complex payroll and tax information simple and accessible for everyone.