If you live or work in New Jersey, one of the most common money questions is:
“How much will I actually take home after taxes?”
Your paycheck includes several deductions — federal income tax, FICA (Social Security and Medicare), and New Jersey’s state income tax, plus smaller payroll programs unique to the state.
Once you know what to subtract and how, you can estimate your take-home pay with accuracy.
Let’s walk through how to calculate your paycheck after taxes in NJ step-by-step — with examples, key tax rates, and a few tips to help you keep more of your money.
Step 1: Start With Your Gross Pay
Your gross pay is the total amount you earn before any deductions.
- A $70,000 salary = about $5,833 per month.
- A $25/hour job at 40 hours/week = $1,000 weekly or roughly $52,000 annually.
Every tax calculation begins here.
Step 2: Subtract Pre-Tax Deductions
Pre-tax deductions are items taken out before taxes are applied. These lower your taxable income and help you save on both federal and state tax.
Common pre-tax deductions 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 or transportation benefits
Example:
If you earn $5,833 a month and contribute $400 to a 401(k) and $200 to health insurance, your taxable income becomes $5,233.
Step 3: Estimate Federal Income Tax
Your federal income tax depends on your filing status and income level. The IRS uses a progressive tax system — meaning portions of your income are taxed at increasing rates.
2025 Federal Income Tax Brackets (Single Filers)
| Tax Rate | Taxable Income |
|---|---|
| 10% | Up to $11,600 |
| 12% | $11,601 – $47,150 |
| 22% | $47,151 – $100,525 |
| 24% | $100,526 – $191,950 |
If you earn $70,000, you’ll pay roughly $7,000–$8,000 in federal tax, depending on your deductions and filing status.
👉 Tip: Compare Midwest earnings between Illinois paycheck calculator and neighboring states.
Step 4: Subtract FICA Taxes (Social Security + Medicare)
Every employee in New Jersey pays FICA taxes, which fund federal programs.
| Type | Rate | Notes |
|---|---|---|
| Social Security | 6.2% | Applies up to $168,600 of income (2025) |
| Medicare | 1.45% | Applies to all wages |
| Additional Medicare | 0.9% | For income above $200,000 (single) |
Example:
If you earn $70,000:
- Social Security = $4,340
- Medicare = $1,015
Total = $5,355/year (≈ 7.65%).
Step 5: Calculate New Jersey State Income Tax
New Jersey uses a progressive income tax system, ranging from 1.4% to 10.75%. Most middle-income earners pay between 5% and 6%.
2025 New Jersey Income Tax Brackets (Single Filers)
| Taxable Income | 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 your taxable income is $70,000, your NJ state income tax is about $3,850 – $4,000/year.
West-coast professionals can contrast taxes via the Oregon paycheck calculator.
Step 6: Add NJ Payroll Deductions (Unique to the State)
In addition to income tax, New Jersey requires small state payroll contributions that most other states don’t have.
| Program | 2025 Employee Rate | Notes |
|---|---|---|
| State Unemployment Insurance (SUI) | 0.3825% | On first $42,300 of income |
| Temporary Disability Insurance (TDI) | 0.47% | On first $161,400 of income |
| Family Leave Insurance (FLI) | 0.09% | On first $161,400 of income |
| Workforce Development Fund (WDF) | 0.0425% | On first $42,300 of income |
These add up to roughly $300 – $400 per year for most workers.
Step 7: Subtract Post-Tax Deductions
After taxes are calculated, some optional deductions may still apply:
- Roth 401(k) contributions
- Union dues
- Charitable deductions
- Wage garnishments or after-tax insurance premiums
These reduce your final net paycheck but not your taxable income.
Step 8: Calculate Your Net (Take-Home) Pay
Here’s the formula you’ll use:
Net Pay = Gross Pay – (Pre-Tax Deductions + Federal Tax + FICA + State Tax + NJ Payroll + Post-Tax Deductions)
Example: $70,000 Annual Salary (Single Filer)
| Category | Amount |
|---|---|
| Gross Pay | $70,000 |
| Pre-Tax Deductions | − $2,400 |
| Federal Tax | − $7,200 |
| FICA (7.65%) | − $5,355 |
| NJ State Tax | − $3,900 |
| NJ Payroll Deductions | − $300 |
| Post-Tax Deductions | − $500 |
| Net Take-Home Pay | ≈ $50,345 / year |
That’s about $4,195 per month or $1,935 biweekly.
Step 9: Consider Your Pay Frequency
Your annual take-home stays the same, but your paycheck amount depends on how often you’re paid.
| Pay Schedule | Paychecks / Year | Example Take-Home ($70k) |
|---|---|---|
| Weekly | 52 | ≈ $970 per check |
| Biweekly | 26 | ≈ $1,935 |
| Monthly | 12 | ≈ $4,195 |
If you’re budgeting, align big bills (like rent or loan payments) with your pay schedule.It’s essential to know your real paycheck before making financial commitments or accepting new roles.
Step 10: Compare NJ to Other States
| State | State Income Tax | Approx. Net Pay ($70k Salary) |
|---|---|---|
| New Jersey | 1.4% – 10.75% | ≈ $50,300 |
| New York | 4% – 10.9% (+ NYC local) | ≈ $49,000 |
| Pennsylvania | 3.07% flat | ≈ $52,000 |
| Florida | 0% | ≈ $54,000 |
New Jersey take-home pay is roughly mid-range — higher than New York but below no-tax states like Florida.
Step 11: Tips to Maximize Your Take-Home Pay in NJ
- Review your W-4 and NJ-W4: Make sure your withholdings match your situation.
- Boost pre-tax contributions: 401(k), HSA, or commuter benefits reduce taxable income.
- Understand payroll deductions: NJ adds small ones (TDI, FLI, UI), so check pay-stubs.
- Avoid surprises: Bonuses and overtime are taxed at higher withholding rates.
- Use a calculator: People in Ohio can check accuracy through the Salary Ohio calculator.
Frequently Asked Questions
1. What percentage of my paycheck goes to taxes in NJ?
Most employees lose about 25 – 33% of their gross pay to combined federal, FICA, and state deductions.
2. Does New Jersey have local income tax?
No — there are no city-level income taxes like New York City’s.
3. What makes NJ paychecks different?
The additional state payroll deductions (UI, TDI, FLI) are unique to New Jersey.
4. How can I reduce taxes from my paycheck?
Use pre-tax benefits and confirm your W-4/NJ-W4 settings.
5. Are bonuses taxed differently in NJ?
Yes. Employers usually withhold a flat 22% federal rate plus state tax on bonuses.
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.