How to Calculate Taxes from Paycheck NJ
Understanding NJ Paycheck Taxes
Step 1: Identify Your Tax Components
- Federal Income Tax (Progressive 10-37%)
- New Jersey State Tax (Progressive 1.4-10.75%)
- Social Security (6.2%)
- Medicare (1.45%)
New Jersey Tax Brackets 2024
| Income Range | Tax 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 – $5,000,000 | 8.97% |
| $5,000,000+ | 10.75% |
Example Calculation
For an annual salary of $60,000:
- Federal Tax (22% bracket): $13,200
- NJ State Tax (5.525% bracket): $3,315
- Social Security (6.2%): $3,720
- Medicare (1.45%): $870
- Total Taxes: $21,105
- Net Annual Income: $38,895