How it works
The calculator starts with your gross pay for one pay period, subtracts the pre-tax deductions you entered, and then works out each tax separately. Federal income tax follows the percentage method in IRS Publication 15-T (2026), Federal Income Tax Withholding Methods, using your W-4 entries. Social Security is 6.2% of wages up to $184,500 for the year (SSA; IRS Publication 15 (2026)). Medicare is 1.45% of all wages, plus Additional Medicare Tax of 0.9% on wages over $200,000 (IRS Publication 15 (2026)).
New Jersey income tax follows the withholding rate tables in New Jersey Division of Taxation, NJ-WT (2026), which apply graduated rates from 1.5% to 11.8% according to the table on your NJ-W4. New Jersey also takes three employee contributions from each paycheck, set each year by the New Jersey Department of Labor and Workforce Development (2026): unemployment and workforce funds at 0.425% on wages up to $44,800, temporary disability insurance at 0.19% and family leave insurance at 0.23%, on wages up to $171,100. There is no city income tax on employees in New Jersey.
Not included: private disability plans that replace the state plan, garnishments, union dues, after-tax Roth contributions, tips, bonuses taxed as supplemental wages, and year-end credits or refunds, including credit for tax paid to another state. Your employer's payroll may round differently.
Worked example
Take a $60,000 salary paid biweekly, filing single on both the W-4 and the NJ-W4, with no other deductions. Gross pay is $2,307.69 per paycheck. Federal income tax withholding comes to $193.08, Social Security to $143.08 and Medicare to $33.46. New Jersey income tax withholding is $77.95, and the three state payroll contributions add up to $19.50 ($9.81 for unemployment and workforce, $4.38 for disability, $5.31 for family leave). Take-home pay is $1,840.62 per paycheck, or $47,920.73 over the year's 26 paychecks.
Frequently asked questions
What are the NJ UI, TDI and FLI deductions on my pay stub?
They are New Jersey's employee contributions for unemployment and workforce development, temporary disability insurance and family leave insurance. For 2026 the rates are 0.425%, 0.19% and 0.23% (New Jersey Department of Labor and Workforce Development, 2026).
What is the top New Jersey income tax rate?
The top rate in the 2026 withholding tables is 11.8%, which applies to the part of income above $1,000,000 (New Jersey Division of Taxation, NJ-WT (2026)).
I live in New Jersey and work in New York. Which state withholds?
New York taxes wages earned there, so a New York employer withholds New York tax. New Jersey allows a credit for tax paid to another state on the resident return, which this paycheck estimate does not include.
Is there a reciprocal agreement between New Jersey and Pennsylvania?
Yes. Under the New Jersey–Pennsylvania reciprocal agreement, a resident of one state working in the other is taxed on wages by the home state (New Jersey Division of Taxation).
Are HSA contributions pre-tax for New Jersey income tax?
No. New Jersey does not exclude HSA contributions from state taxable wages, so the calculator reduces federal wages but not New Jersey wages for an HSA amount.
Does New Jersey have a city wage tax like New York City?
No. New Jersey municipalities do not tax employee wages, so a New Jersey paycheck has no local income tax line.